. 4 min read

Kalima Client-side Smart Contracts for Bitcoin and Lightning Network

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Bitcoin has evolved from being an idea, a concept, to a practical solution that has revolutionized lives.

At their discretion, users can opt to use a trustless, cheap, and highly reliable network to move value across boundaries, at any time, without permission. What Bitcoin brings to the table made the project a top-performing asset in the last decade. By the close of 2020, Bitcoin had posted a one million percent rise, outperforming traditional investments, including S&P 500 and gold.

But that’s not to say BTC has slowed down since then. If anything, the BTC uptrend continues as the world realizes the significance of the network.

Bitcoin: A Transactional Layer without Smart Contracts

Even so, for everything that Bitcoin presents, it’s a transactional layer. Bitcoin is, however, bolstered by committed, incentivized Bitcoin mining farms and node operators from across the world. As of mid-August 2022, Bitcoin remains the most secured blockchain network, with miners committing over 200 EH/s in hash rate. All of these miners work in sync to guarantee that every transaction posted is confirmed securely and without an intermediary looking to squeeze huge fees.

Bitcoin may lack smart contract capability, but it does compensate for this weakness with a secure base layer and the world’s most valuable asset. The good news is that despite the limitation of Bitcoin, developers continue to innovate. Additionally, Bitcoin developers recognize the importance of collaboration and extending the capability of Bitcoin.

Thus far, improvements such as the recently activated Bitcoin Taproot upgrade made BTC transactions more secure, the network more scalable, and on-chain transfers more private. The Taproot upgrade further complements efforts to scale Bitcoin via the Lightning Network. Currently, Blockstream handles the layer-2 platform’s development. The solution continues to find adoption gauging by the millions of BTC locked in the Lightning Network.

Kalima Focuses on IoT and Data

These are welcomed additions and scaling solutions that projects such as Kalima plan to leverage and drive adoption of the blockchain. Kalima is a practical and workable blockchain that delivers the promise of the Internet of Things (IoT) and the machine economy. It is multichain, benefitting from other public networks such as including Bitcoin, Tezos, and Ethereum. Considering how Kalima is designed, the network creators aim to make it the backbone that will anchor the future of data by releasing functional infrastructure that meets the expanding and evolving needs of individuals and businesses. Even as they drive towards their goals, Kalima remains flexible and complementary to existing legacy chains like Bitcoin.

While Kalima sets itself apart from other networks because of its low-fee transactions, commitment to scalability, and focus on IoT and machine learning, a distinctive feature of Kalima is its support for client-side smart contract functionality. This characteristic is why Kalima’s use cases expand to many industries, including finance and payment. These are sectors where Kalima’s benefits can be extended to Bitcoin—even in the current setup, further accelerating the adoption.

Client Side Smart Contract Functionality via Kalima

In light of how Bitcoin is structured, using UTxO architecture, Kalima can offer client-side smart contracting functionality and act as a third layer on Bitcoin.

In this arrangement, the blockchain platform won’t be a token protocol but still allows the issuance and management of scalable and private assets.

At the same time, Kalima remains compatible with the Lightning Network. The off-chain scaling solution for the Bitcoin and Litecoin networks is designed to enhance processing power and, most importantly, allow BTC holders to make micropayments. Like the layer-2 protocol, Kalima can’t be restrained by Bitcoin’s inability to scale. Instead, the Kalima Network exists on top of the Bitcoin transaction graph. Therefore, while it can be Bitcoin’s layer-2, it can also function as a layer-3 protocol of Bitcoin, inheriting the base layer’s security and decentralization, all while enabling private transfer of tokens and independently scaling.

The ability of Kalima to enable private transfer with no on-chain footprint is because of its client-validated paradigm that Peter Todd first forwarded. Under this privacy-shielding design, data is controlled by the originator, that is, the asset owner, and not by public consensus. Once Blockstream releases the Simplicity scripting language, Kalima’s client-side smart contracts will be coded with the same language.

Kalima will showcase a Technical Concept during the Surfin Bitcoin Event

Towards their grand goal, Kalima and Kerlink, an IoT specialist, are joining forces to build a new solution for smart contracts using Kalima’s industrial protocols to activate the Lightning Network’s microtransactions. During the upcoming Surfin Bitcoin Event from August 25 to 27, the two will demonstrate a “layer-2 layer for Bitcoin”. Their solution will enable BTC micropayment using the Lightning Network while authenticating valuable IoT and enterprise data using Kalima technology.

The technical demonstration will leverage Bitcoin as the primary layer for managing and securing rights. The Lightning Network will be used on the second layer to scale BTC micropayments. The third layer will be the Kalima and Kerlink combination for gateway value addition and efficiency. Eventually, the successful execution of this workshop will practically illustrate how Kalima, with smart contracts executed through the Kerlink gateway, can trigger BTC micropayment on the Bitcoin Lightning Network securely without compromising data quality in an IoT setting.

Connect with our team today:

Website : https://www.kalima.io/

Telegram: https://t.me/Kalima_EN

Twitter : https://twitter.com/Kalima_KLX

LinkedIn: https://www.linkedin.com/company/kalima-systems/

Discord: https://discord.com/invite/juPWRHaWR5