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Alpha version of Bitcoin oracle released, opening the door to Bitcoin DeFi.

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The door to Bitcoin network DeFi applications will soon be opened. This is a timely rain for the BRC20 market.

Source: Xiaoyin New Decade (Wang Feng)

Editor's note: On December 11th, ALEX, a one-stop Bitcoin DeFi service platform, released the Bitcoin Oracle Alpha version. This version was developed in collaboration with Domo, BIS, Hiro, UniSat, Xverse, and Xlink, and is expected to be fully launched after testing is completed at the end of the first quarter of 2024. Community members are encouraged to participate in running indexer nodes and verifying BRC20 events. As a result, Element co-founder Wang Feng explained the importance of Bitcoin oracles in the DeFi field, and he believes that Bitcoin network DeFi applications will also develop as a result.

The one-stop DeFi service platform for Bitcoin, ALEX, has released the Alpha version of Bitcoin Oracle, which is known as the "indexer of indexers". Starting from BRC20 tokens, it will gradually bring security, transparency, and efficiency to Bitcoin L1 asset operations. From now on, the door to Bitcoin network DeFi applications will soon be opened. This is a timely rain for the BRC20 market. The following eight points are for reference:

1. The relationship between Oracle and DeFi

Their relationship is deeply coupled. In DeFi, smart contracts often need to interact with external data, such as prices and data. Oracles help ensure the reliability and accuracy of smart contracts by providing secure and reliable data sources.

2. Bitcoin Oracle Technical Development Background

This version is developed in collaboration with Domo, BIS, Hiro, UniSat, Xverse, and Xlink. BRC20 transfers and balances can be verified through consensus based on smart contracts between BIS, Hiro, and UniSat. The indexer performance dashboard is now accessible on the Bitcoin oracle network. Xverse and Xlink will serve as the primary development and testing partners.

3. Main Features of Alpha Version

BRC20 transfer and balance: verified between BIS, Hiro, and UniSat based on smart contract consensus. Programmers can access. Indexer performance dashboard is now accessible through the Bitcoin oracle network.

4. What is a Bitcoin Oracle?

A decentralized tool that runs on the blockchain. Starting from BRC20 tokens, it provides a crucial layer of security and efficiency for Bitcoin L1 assets. Unlike traditional off-chain indexers with centralized vulnerabilities, Bitcoin oracles run on-chain, ensuring higher transparency and anti-tampering capabilities.

Accurately track and verify asset transactions based on Bitcoin. By integrating smart contract functionality, the Bitcoin oracle overcomes the limitations of the Bitcoin blockchain. Initially, the Bitcoin blockchain was not designed for complex token operations. This makes it an important tool for ensuring the integrity of BRC20 tokens and other potential Bitcoin assets in the future.

Become the "indexer of indexers". Bitcoin oracle aggregates data from various off-chain indexers, verifies and integrates information to provide a single, reliable source of facts. This unique approach solves the typical centralized control and single point of failure problems of traditional off-chain indexers.

5. The Importance of Bitcoin Oracles in the DeFi Field

Its introduction reduces the risks associated with centralized off-chain indexers, such as tampering and single point of failure. This enhances trust in the system, which is a key factor in the widespread adoption and growth of DeFi. Additionally, by managing Bitcoin L1 assets more efficiently and securely, Oracle opens up new possibilities for DeFi applications on the Bitcoin network, which may attract more developers and investors to join the ecosystem.

6. Continuous Development in Alpha Stage

Indexer Node Expansion: This involves adding multiple instances of open source reference indexer implementations in different regions. It aims to cultivate an open, membership-based oracle to enhance decentralization and reliability.

Core client API version: An important development that will enable decentralized applications (dapps) and wallets to effectively access oracle data, seamlessly integrating with the Bitcoin oracle infrastructure.

Development and testing partnership: The partnership with Xverse (wallet partner) and Xlink (dapp partner) and other partners is an essential part of the development and testing of the client API, ensuring a robust and reliable user-friendly interface.

7. Test version and subsequent versions

Test versions will be released in the first quarter of 2024, inviting more decentralized applications and wallets to integrate and encouraging community members to participate in running indexer nodes and verifying BRC20 events.