On May 6, 2025, BitcoinOS (BOS) conducted a groundbreaking demo transaction, transferring 1 BTC from a Bitcoin wallet to Cardano and back without traditional bridges, using xBTC tokens and zero-knowledge proofs. Could this be a turning point for Bitcoin in the DeFi space? Let's analyze in detail.


Groundbreaking Demo Transaction: From Bitcoin to Cardano

#BitcoinOS conducted a demo transaction on Sunday, transferring 1 BTC back and forth between Bitcoin and Cardano without a bridge. The steps include:



  • Lock and Wrap: 1 BTC is locked, wrapped, and minted directly on the Bitcoin blockchain into xBTC – a new token developed by BOS, containing cryptographic proof of the value and existence of the original BTC.


  • Transfer to Cardano: xBTC is sent to the wallet of Sundial Protocol (a layer-2 combining Bitcoin and Cardano), then forwarded to the Handle wallet – an identity solution on Cardano.


  • Return to Bitcoin: xBTC is returned to the Bitcoin network, where it is burned and unwraps into regular BTC, completing the journey.



Edan Yago, co-founder of BOS, told Decrypt: “Crypto users do not utilize BTC beyond its current function because they have no other options.” Compared to Ethereum ($1,800, soon upgrading to Fusaka) or Solana ($149), Bitcoin ($94,800) is less used in programming despite being the most valuable asset, due to limitations in flexibility.


The Technology Behind: xBTC and Zero-Knowledge Proofs

BitcoinOS introduces #xBTC – a programmable token, enhancing Bitcoin’s capabilities in DeFi and cross-chain interactions. Unlike traditional bridges (which pose custody risks and have lost over $2 billion due to hacks since 2022), BOS utilizes zero-knowledge proofs through the BitSNARK protocol – open-sourced since March. BitSNARK, previously tested on the Bitcoin mainnet last year, ensures safety without compromising security. Yago emphasizes: “This is internet money, but now there’s added magic.”


Meaning and Challenges

This transaction addresses the cross-chain interaction issue – a major challenge in crypto. Eliminating bridges reduces custody risks, opening up “countless possibilities” for Bitcoin, from DeFi to cross-chain applications. However, the Bitcoin community is divided on expanding programmability. Some worry this could turn Bitcoin into a “worthless altcoin,” undermining its core essence.


Impact on the Crypto Market

The development of BitcoinOS brings many positive signals:



  • Expanding DeFi: xBTC allows Bitcoin to participate deeper in DeFi, competing with Ethereum and Solana, supporting initiatives like real estate tokenization (projected to reach $4 trillion by 2035).


  • Increasing Safety: Zero-knowledge proofs reduce hacking risks, boosting trust in cross-chain interactions, complementing projects like Cardone Capital (buying 350 BTC) and GameStop ($4.7 billion preparing to buy BTC).


  • Supporting the Ecosystem: This technology could enhance liquidity for Bitcoin, pulling up altcoins like XRP (2X leveraged ETF) and Cardano.



Future Prospects

BitcoinOS is reshaping Bitcoin's role, from a store of value asset to a flexible programming platform. With inflows into crypto funds reaching $3.4 billion last week and forecasts predicting Bitcoin to hit $120,000 (Standard Chartered), this technology could drive a wave of innovation in the industry.


Conclusion: Will Bitcoin Dominate DeFi?

BitcoinOS has transferred 1 $BTC to Cardano and back without a bridge, thanks to xBTC tokens and zero-knowledge proofs, unlocking great potential for Bitcoin in DeFi and cross-chain. Despite ongoing debates in the community, this technology promises to enhance safety and flexibility, potentially allowing Bitcoin to compete with Ethereum and Solana. Investors should closely monitor to seize opportunities from this innovation.


Risk Warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong