Cryptocurrencies are being widely used by individual consumers and organizations to conduct digital transactions in a permissionless manner. With centralized payments platforms like PayPal, users may not be able to transact as freely or as seamlessly, because there are many operational guidelines that traditional platforms are required to follow.
Bitcoin (BTC) has emerged as a popular way to exchange monetary value in a decentralized manner. In 2021, the flagship cryptocurrency also became a trillion-dollar asset class and isn’t showing any signs of slowing down. In addition to the rise of Bitcoin, other digital asset platforms like Ethereum (ETH) are also gaining mainstream adoption. While the majority of DeFi services have been built on Ethereum, several development teams and industry participants are also focused on creating truly uncensorable applications on top of the Bitcoin protocol.
Building Censorship-Resistant Applications on top of Bitcoin Network
The developers of Portal are working on a multi-layered system that’s purpose-built for enabling censorship-resistant financial and non-financial apps on top of the Bitcoin network. This, according to Portal’s whitepaper, which also notes that this system would enable the secure creation and implementation of P2P agreements, such as financial or non-financial terms and conditions.
As explained in its whitepaper, the Portal team is interested in financial apps that may use this digital infrastructure for spot trading, lending, borrowing, investing, crypto derivatives, and even crowdfunding.
Other decentralized and censorship-resistant software solutions like communication networks and social media platforms may also be developed on this robust infrastructure. This system would enable its users to access all the typical decentralized services in a non-custodial and user-centric manner.
As noted in Portal’s whitepaper, users would be able to trade and enter contracts with the same speed, seamless user experience (UX), and liquidity of centralized platforms – all without giving up control of their assets or data to intermediaries. In addition to these features and capabilities, the developers of Portal have been working on Fabric technology to support private, off-chain smart contract execution.
Fabric Technology to Allow Users to Conduct Private, Off-Chain Smart Contracts
Fabric is described as a Layer-3 P2P market for computation. As mentioned in the Portal whitepaper, the system implements “ephermal” compute infrastructure via smart contracts on various blockchain or distributed ledger tech (DLT) networks like Bitcoin, or other somewhat similar chains like Zcash, Litecoin; and Ethereum and other networks supporting smart contracts.
At the core or heart of Portal is its Layer 2 and Layer 3 tech, known as Fabric, which is an open-source tool for launching censorship-resistant layers on top of the Bitcoin (BTC) base layer. Fabric aims to support fully private, off-chain execution of smart contracts for the purpose of digital asset issuance, P2P swaps, staking, liquidity, derivatives, and other use-cases.
Private transactions and financial privacy can be important and become a necessity when parties are interested in exchanging highly sensitive financial records or other information that needs to be kept confidential. For example, there may be certain terms and conditions and transactions involving large trade finance deals that the parties don’t want to share publicly.
That’s why it is important to have applications that allow organizations and other business entities to execute certain contracts in a private, uncensorable, and decentralized manner.
Portal CEO Eric Martindale has noted that by providing a fast, peer-to-peer, Layer 2 exchange — with the same speed of centralized platforms but with added privacy — Portal aims to deliver on the promise of “self-sovereignty for everyone.”
Eric explained that the centralized trading platforms may just be false “decentralized” DEXs, “custodially” wrapped tokens, as well as “censorable ecosystems.” According to Eric, these could all pose a threat to Bitcoin’s mission of providing self-sovereignty. Fabric tech has been designed to support Layer-3 privacy on cross-chain transfers and eliminates the requirement of dealing with centralized custodians, Eric explained.