Interlay has recently launched a cross-chain bridge that is Bitcoin (BC) based. The particular bridge has been launched on Polkadot (DOT). According to Interlay, the particular bridge has been dubbed “interBTC – iBTC”.
Use of the Bridge
The particular bridge has been formed so that Bitcoin users can use and interact with features offered for Bitcoin through non-native blockchains of Bitcoin.
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To be precise, the particular bridge allows the users to use Bitcoin in a decentralized finance (DeFi) environment. The users will be able to use Bitcoin on multiple decentralized finance channels such as non-fungible tokens (NFTs) cross-chain transfers, and many more.
Function of interBTC
interBTC is a stablecoin protocol that is backed by Bitcoin. It has been secured by overcollateralized vaults formed of a decentralized network.
Interlay has claimed that the particular protocol is somewhat similar to the DAI token, which is the development of MakerDAO.
DAI token is a stablecoin that has been powered by the Ethereum blockchain network.
The function of the iBTC vaults is to insure reserves for Bitcoin while using collateral for mixed assets. The value of Bitcoin versus the iBTC is 1:1 whether it is being accessed through the decentralized blockchain or the Bitcoin blockchain.
Programming of the Protocol
The protocol has been developed in such a way that it is able to deal with any unforeseen vault failures very smartly.
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The preventive measure integrated into the protocol ensures that in case of any unforeseen failure with the vault, the slashing of the collateral comes into place.
This ensures that the depositors are reimbursed for the BTC or iBTC they have added to the protocol.
Alexei Zamyatin’s Comments
According to Zamyatin, the CEO and co-founder at Interlay, Bitcoin is the driving force that has brought mainstream adoption to the cryptocurrency industry.
Although Bitcoin is the main reason millions have joined the industry, it is the only major cryptocurrency that is not part of the DeFi space.
This is the reason why the network has ended up losing so much and has never been able to operate at its full potential.
With their technology, they have the ability to provide full support to Bitcoin and welcome it into the decentralized finance sector.
With the formation of interBTC, they have successfully combined both the decentralized finance and Bitcoin worlds.
Future of Bitcoin
Ever since the decentralized finance industry was introduced, many had argued that Bitcoin must be added to the space.
Finally, the thought has come to life and interBTC is a step forward in favor of Bitcoin. Bitcoin is going to gain huge support with the latest input and its demand will continue climbing.
In the past 24 hours, the trading price of Bitcoin has surged 0.36% and it currently trades at $24,211.50.