Close Menu
    Bitcoin

    Portal Develops BitScaler to Enhance Bitcoin’s Viability in DeFi through Scalability and User Ownership Solutions

    By No Comments4 Mins Read

    30s Summary

    Portal to Bitcoin aims to make Bitcoin a practical base for DeFi apps while ensuring user control and ownership. It has developed BitScaler to tackle Bitcoin’s scalability issues. This technology enables users to maintain control during all types of DeFi operations by grouping offchain transactions into a single onchain action. Also, BitScaler manages crosschain compatibility using atomic swaps for seamless asset exchange across blockchain networks and enhances scalability while reducing transaction fees. Additionally, it introduces a non-custodial signing delegation system to address Bitcoin’s technical problem of needing constant online presence for complex transactions. Portal has raised over $42 million in total from funding.

    Full Article

    Portal to Bitcoin is on a mission to turn Bitcoin into a practical base for DeFi apps, while ensuring users have full control and ownership.

    With the recent buzz around Bitcoin following the US election, crypto has hit a new high with a total market cap of $3.12 trillion – matching France’s GDP! Analysts are predicting that Bitcoin still has some juice left in it and could potentially hit a six-figure valuation. But to achieve that, some deep-seated issues in Bitcoin and the wider DeFi sector need to be tackled.

    Issues like scalability, which slows down the network, and security risks involving users giving their assets to third parties, have hindered the creation of apps that need to work across several blockchains. Add high transaction costs to the mix and it becomes clear why regular users are being put off, and why integrating assets across different blockchains becomes harder.

    Hopefully, there are new technologies out there that could solve these fundamental problems of the crypto industry.

    Portal to Bitcoin, a platform for Bitcoin, has come up with a unique method to overcome the scalability demand of Bitcoin. BitScaler, as it’s called, allows users to have full control over their assets during all types of DeFi operations. Unlike the conventional scaling solutions that depend on guardians or safes, BitScaler relies on a model where users have complete custody.

    BitScaler’s primary technology, the “modified channel factory,” consolidates a bunch of offchain transactions into a single onchain action. As a result, instead of working out every single transaction on the main Bitcoin blockchain, BitScaler groups them offchain and only interacts with the main network when needed.

    By shifting a lot of transactions offchain, BitScaler reduces the load on the Bitcoin blockchain, lowers transaction fees and increases transaction throughput. This allows the network to handle more transactions effectively, encouraging the growth of complex DeFi apps while ensuring Bitcoin’s trust-based integrity.

    BitScaler also manages crosschain compatibility without the need for custodians. By using atomic swaps, it allows seamless asset exchange across different blockchain networks, without relying on bridges, wrapped derivatives or synthetic tokens. It’s multiparty channel factories technology (MPCh) also enhances scalability and reduces transaction fees, which simplifies the integration of various assets into the Bitcoin ecosystem.

    To deal with Bitcoin’s technical issue of participants needing to stay online for complex transactions, BitScaler introduces a non-custodial signing delegation system. This way, delegates can co-sign without having to take custody of user assets.

    Recently, Portal raised $34 million in a seed funding round following a pre-seed round of $8.2 million, making a total of over $42 million. With all this cash and a deep understanding of crosschain atomic swaps, they’re poised to significantly impact the Bitcoin DeFi landscape.

    According to their CEO, Chandra Duggirala, their new platform enhances Bitcoin’s role in DeFi by providing a scalable, custody-free structure that can seamlessly work with other blockchains. He said: “With BitScaler, we’ve not only solved the long-standing challenges of Bitcoin scaling but also unlocked new possibilities for the entire crosschain ecosystem, with the aim of solving the crosschain custody forever.”

    In the future, Portal plans to broaden its decentralized exchange offering and roll out non-custodial DeFi basics such as perps and lending for secure, crosschain asset transfers, eliminating intermediaries. This is a pivotal moment for companies like Portal that could potentially overcome existing barriers and unlock the full potential of the decentralized financial ecosystem.

    To learn more, check out [Portal to Bitcoin](https://portaltobitcoin.com/).

    Please note: While we’ve tried to give you all the essential info from this sponsored article, do your own research before making any decisions. This article is for informative purposes, not investment advice.

    Related Posts