Chainlink expands Bitcoin DeFi with Spiderchain integration

Chainlink (CRYPTO:LINK), in collaboration with Botanix Labs, is making strides to bring decentralized finance (DeFi) capabilities to Bitcoin (CRYPTO:BTC) through its Cross-Chain Interoperability Protocol (CCIP). 

The partnership focuses on leveraging Chainlink’s proven infrastructure and Botanix’s Spiderchain, a Bitcoin Layer-2 solution. 

According to Chainlink, this integration aims to enhance Bitcoin’s DeFi ecosystem by using Spiderchain’s Layer-2 features to achieve faster block times and lower transaction fees. 

Spiderchain’s blocks run at five-second intervals, which significantly speeds up transactions compared to Bitcoin’s usual 10-minute block time. 

With fees reduced to just a few cents, the network becomes a viable platform for new use cases, such as micropayments, which were previously hindered by Bitcoin’s higher fees and slower processing speeds. 

This collaboration also addresses Bitcoin’s original design limitations regarding smart contracts. 

Spiderchain’s Ethereum Virtual Machine (EVM) compatibility allows Bitcoin to support more complex decentralized applications (dApps) and financial instruments, increasing liquidity and capital efficiency. 

Johann Eid, Chief Business Officer at Chainlink Labs, commented, “Bitcoin layer-2s are redefining how the world views Bitcoin. This partnership will enrich the Bitcoin ecosystem and the greater blockchain industry.” 

As part of the partnership, Botanix Labs has joined Chainlink’s Scale Program, which promotes sustainable growth for decentralized protocols by offering access to Chainlink’s premium Oracle services at lower costs during the early development phases. 

This strategic move is expected to help Botanix expand its capabilities while maintaining cost efficiency. 

Botanix Labs is not the only firm to adopt Chainlink’s CCIP. 

Other adopters include Mountain Protocol and Ronin Validators, highlighting CCIP’s utility in ensuring secure and private transactions across blockchain networks. 

Despite these advancements, Chainlink’s token, LINK, has faced challenges in price performance. 

However, the integration with Spiderchain and other developments may enhance its utility within the broader DeFi ecosystem.

At press time, the Chainlink price was $11.62, and the Bitcoin price was $68,131.74.