Many people may not know that $AT actually laid out early in the Bitcoin Layer 2 track. As early as August 2024, it established a strategic partnership with Bitfinity Network, which is more than a year earlier than Binance's launch. It can be said to be a true long-term player.
The background of the Bitfinity project is also not simple. Its investor is Polychain Capital, one of the top VCs in the crypto circle. They invested in a bunch of star projects like Coinbase, Compound, and Uniswap. The projects they focus on basically have a good track record.
The things Bitfinity wants to do are very interesting. It aims to bring EVM smart contract capabilities to Bitcoin, allowing Bitcoin to run complex DeFi applications as well. This sounds a bit crazy because Bitcoin's scripting capabilities are quite limited, and Satoshi Nakamoto didn't consider smart contracts at all when designing it.
However, Bitfinity bypasses this limitation through Layer 2. It builds a compatible EVM execution environment on top of the Bitcoin main chain, allowing developers to write smart contracts directly in Solidity and then deploy them on Bitfinity. The ultimate security is still ensured by the Bitcoin main chain.
Here comes a question: smart contracts must have reliable external data to run. For example, if you want to create a lending protocol on Bitfinity, you need to know the real-time price of BTC and the market value of collateral. Where do these data come from? This is where @APRO-Oracle plays its role.
#APRO provides Bitfinity with not just simple BTC/USD price feeds; it also supports data services for Ordinals, Runes, and BRC-20, which are Bitcoin-native assets. The market data for these emerging asset classes was previously a blank space without reliable oracles providing support.
Everyone should have heard of Ordinals, which is the protocol for engraving digital artworks and NFTs on Bitcoin. It allows Bitcoin to also engage with NFTs. But the question is, how do we determine the market price of these Ordinals? Surely, we can't rely on negotiations between buyers and sellers every time a transaction occurs.
$AT The approach is to aggregate transaction data from multiple Ordinals markets, including mainstream platforms like Magic Eden and OKX NFT, and then calculate a fair price using the TVWAP algorithm. This way, DeFi protocols can accept Ordinals as collateral or conduct Ordinals derivative trading.
The Runes protocol is more interesting. This is a fungible token standard on Bitcoin, similar to Ethereum's ERC20, but the characteristic of Runes is that it is directly etched into Bitcoin transactions without the need for additional side chains or Layer 2. @APRO-Oracle provides real-time liquidity data and price discovery services for Runes.
Since the Runes market is still in its early stages, liquidity is dispersed across various small exchanges and OTC channels, and price fluctuations are significant. It is very easy to manipulate. #APRO can filter out obviously unreasonable quotes through multi-source aggregation and anomaly detection, providing relatively accurate reference prices.
Although BRC-20 is technically a bit rough, the market heat has remained high. Some BRC-20 tokens can achieve daily trading volumes of tens of millions of dollars. A market of this scale certainly needs professional data services, and they have already laid out plans in this field.
Now let's talk about the Lightning Network. This is Bitcoin's Layer 2 payment network, which theoretically can achieve low-cost and high-speed Bitcoin payments. However, the Lightning Network has a problem with route selection. When you want to transfer money to someone, you need to find a payment path with sufficient liquidity.
@APRO-Oracle can provide real-time channel liquidity data for the Lightning Network, helping wallets and payment applications choose the optimal path, reducing payment failure rates and fees. This feature may seem inconspicuous, but it is very important for improving user experience.
A more cutting-edge application is the RGB++ protocol, which is a client-validated smart contract framework that can achieve complex asset management on Bitcoin. However, RGB++ requires oracles to verify off-chain states to ensure the authenticity of assets. #APRO's hybrid architecture is well-suited for this scenario.
From a technical implementation perspective, deploying in the Bitcoin ecosystem is somewhat different from other chains, because Bitcoin's scripting capabilities are limited, and many complex verification logics cannot run directly on-chain. Therefore, it relies more on off-chain computation and cryptographic proofs.
Specifically, @APRO-Oracle's nodes will complete data collection, calculations, and multi-signature verification off-chain, and then package the final results and proofs into a compact data structure to submit to Bitcoin or Layer 2. This ensures both security and circumvents the limitations of Bitcoin scripts.
The cooperation with Bitfinity has a deeper significance, which is to connect Bitcoin and the EVM ecosystem. Since Bitfinity is EVM compatible, mature DeFi protocols from Ethereum can be seamlessly migrated over, and #APRO, as an oracle, is familiar to many projects in the EVM ecosystem.
This means that lending protocols, DEXs, and derivatives platforms on Ethereum can be redeployed on Bitfinity. Then, AT's data services can quickly launch business without having to start from scratch to explore the characteristics of the Bitcoin ecosystem.
The concept of Bitcoin DeFi used to sound a bit far-fetched because Bitcoin has no smart contracts and can only do limited things. But now, through Layer 2 and innovations like Ordinals and Runes, the Bitcoin ecosystem is undergoing a qualitative change.
@APRO Oracle The role played in this process is crucial. It is a bridge connecting Bitcoin and the external world. Without reliable data feeding, no matter how good the DeFi protocol is, it cannot operate $AT . Early layout in this field is seen as a recognition of the trend of Bitcoin ecosystem revival.
Moreover, the size of Bitcoin is there, with a market value exceeding one trillion US dollars, making it the absolute leader in the cryptocurrency market. If Bitcoin DeFi can develop, even if it only reaches one-tenth the scale of Ethereum, that would still be a market worth hundreds of billions.
#APRO As one of the few focused oracles in the Bitcoin ecosystem, it occupies a very good ecological niche. In the future, as more DeFi applications go live on Bitcoin Layer 2, the demand for data services will continue to grow. This is its moat.
