The integration between dWallet Network and Avail will provide Bitcoin (BTC) users with access to smart contract functionality without the need for bridging, wrapping, or relinquishing control of their BTC. This partnership will enable dWallet’s smart contracts, built on Avail’s data availability solution, to generate Bitcoin signatures while ensuring that users have complete control over their BTC.
Omer Sadika, the co-founder and CEO of dWallet, expressed that the Bitcoin community has been critical of Bitcoin rollups or “layer-2s” for a long time. Many solutions have been accused of “affinity scamming” by deceiving users into bridging or wrapping BTC in exchange for other tokens. To address this, dWallet’s integration with Avail aims to enable programmable native BTC where a user signature is cryptographically required.
The core functionality of this integration lies in multi-party computation (MPC), a set of cryptographic protocols that allow multiple parties to compute a function together without revealing their inputs to each other. With dWallet’s MPC infrastructure, a wallet on the decentralized MPC dWallet Network can generate a Bitcoin transaction. A smart contract on an Avail rollup is required to approve the transaction, and the user must sign for the Bitcoin transaction.
This collaboration will leverage dWallet’s MPC infrastructure to expand Bitcoin’s capabilities by enabling the creation of native rollups. This means that smart contracts can run any logic and utilize native BTC without the need for bridging or wrapping tokens. This opens up possibilities for decentralized finance (DeFi) protocols, such as swapping, lending, staking, DAOs controlling BTC, trading portfolios, and gaming, to include native BTC.
Anurag Arjun, the co-founder of Avail, believes that allowing BTC to be used programmatically on other blockchains through a trust-minimized approach is a unique way to drive Bitcoin adoption. He sees Bitcoin as an excellent base layer with the highest security in the ecosystem.
The dWallet technology enables a Solidity smart contract on an Avail rollup to create Bitcoin signatures and allows developers to manage a dWallet. The dWallet Network requires approval from the Avail rollup smart contract for logic enforcement, ensuring that users finalize the signature to prevent collusion and asset theft.