Bridging has existed for a while now and Avalanche wasn't definitely the first.
But then again, your bitcoin isn't actually going to another chain because that's technically not possible. Just like wBTC, BTC.b is actually just an IOU, and technically is not 'real' bitcoin.
I'm personally neither for or against it though — I believe you're free to do whatever you want with your bitcoin as long as you're totally aware of the risks.
Topic: Bitcoin and Avalanche Bridging - good or bad for bitcoin ? (Read 98 times)
It'd only be a problem for bitcoin is bitcoin was PoS. I think people like to have ways of exchanging their btc for cash equivelants (like stablecoins) and I'd be surprised if anyone but exchanges and dexes were holding btc (it might also make sense to take loans against btc equivelants in some circumstances but then we'd need to argue who's holding that wbtc then).
It is not related to Bitcoin. Bitcoin is Bitcoin and it is on Bitcoin public ledger and its network.
Avalanche is Avalanche and it has its own network that is different than Bitcoin network.
Bridging is moving from Bitcoin to another token that is not Bitcoin. You can do it yourself if you like that token but always remember that it is not Bitcoin. That token and related smart contract can be hacked, its value can be de-pegged but it is not Bitcoin responsibility.
How many Wrapped tokens got de-pegs months ago around FTX and FTT fiasco?
Do you want to fall into a similar situation with Avalanche-based token that tries to connect it to Bitcoin.
Avalanche is Avalanche and it has its own network that is different than Bitcoin network.
Bridging is moving from Bitcoin to another token that is not Bitcoin. You can do it yourself if you like that token but always remember that it is not Bitcoin. That token and related smart contract can be hacked, its value can be de-pegged but it is not Bitcoin responsibility.
How many Wrapped tokens got de-pegs months ago around FTX and FTT fiasco?
Do you want to fall into a similar situation with Avalanche-based token that tries to connect it to Bitcoin.
In the recent news article that I came across, one of the analyst have released information regarding BTC transfers worth $44 million to the Avalanche. The number of bitcoins that were transferred was 2000 BTC on Thursday. Basically, we now have bridging technology which can help us move the coins from one main net to the other one. Like irrespective of what chain we have initially and which one is the receiving one.
That itself is surprising stuff to read for me, I am not sure how many of the forum members are involved with this but yeah it's something unique.
Now, there is another platform which transferred half of the mined bitcoins over to BENQUI Finance which is again another Avalanche based decentralized finance platform allowing users to lend, borrow etc.
BTC.b [bitcoin bridge] was implemented so that Bitcoin's can be transferred to the cross chain platforms of Avalanche as a result we are already seeing the effect these days.
Is it safeguarding bitcoin's in the hands of decentralized platform ? & does it mean it's time to go hand in hand whether it's bitcoin and other side of crypto merger?
Bitcoin-Bridged to Avalanche Reaches Record Daily Mint of Over 2K BTC
That itself is surprising stuff to read for me, I am not sure how many of the forum members are involved with this but yeah it's something unique.
Now, there is another platform which transferred half of the mined bitcoins over to BENQUI Finance which is again another Avalanche based decentralized finance platform allowing users to lend, borrow etc.
BTC.b [bitcoin bridge] was implemented so that Bitcoin's can be transferred to the cross chain platforms of Avalanche as a result we are already seeing the effect these days.
Is it safeguarding bitcoin's in the hands of decentralized platform ? & does it mean it's time to go hand in hand whether it's bitcoin and other side of crypto merger?
Quote
Interest in bridging bitcoin (BTC) to the Avalanche smart contract blockchain (BTC.b) continues to swell as the supply of wrapped bitcoin (wBTC), the largest wrapped version of bitcoin on Ethereum, dwindles.
On Thursday, over 2,000 BTC ($44 million) was ported to Avalanche, the largest single-day BTC.b mint on record, according to data sourced from pseudonymous analyst 0xAcid's dashboard on Dune Analytics. That has lifted the total circulating supply of BTC.b to 8,572.
According to 0xAcid, half of the bitcoin minted on Thursday has been moved to BENQI Finance. BENQI Finance is an Avalanche-based decentralized finance protocol, which allows users to lend, borrow and earn additional yields from digital assets.
In June 2022, Avalanche added support for bitcoin on its cross-chain bridge, allowing BTC holders to deploy their coins in the Avalanche-based decentralized finance (DeFi) ecosystem to generate extra yield. BTC.b has seen impressive growth since then, surpassing the number of coins held in the Lightning Network.
A crypto bridge is a tool that facilitates interactions between the two economically and technologically separate blockchains. Bridges became a target of hackers last year, accounting for about 70% of the total exploits in the crypto industry last year, according to forensics firm Chainalysis.
The record BTC.b mint comes as the WBTC supply fell by 15% to 153,164 in February, reaching the lowest since March 2021. Apparently, bankrupt crypto lender Celsius, a well-known WBTC holder, redeemed a large amount of WBTC, causing a sharp drop in the token's supply.
WBTC, issued by Bitgo, is an ERC-20 token based on the Ethereum network with its price pegged 1: with bitcoin. The token's supply peaked at 285,000 in April last year and has been falling ever since.
The Avalanche community considers BTC.b a better option than WBTC, considering Avalanche offers users the ability to mint and redeem BTC.b anytime with the bridge in a non-custodial browser extension Core, eliminating the need for intermediaries. It provides more control to users, unlike WBTC, which relies on merchants to initiate the process of minting and burning.
According to Emperor Osmo, an anonymous writer for Cosmos-based automated market maker Osmosis, the investors in AVAX, the native token of Avalanche, are yet to take notice of BTC's growing use in DeFI, as evidenced by BTC.b's rising supply.
"Over $200M of BTC has been bridged to Avalanche [to date]. The BTC DeFi narrative is definitely not priced in for AVAX," Osmo tweeted early Friday.
At press time, AVAX traded nearly 6% lower on the day, near $16, the lowest since Jan. 20. The cryptocurrency has seen a 50% appreciation in its market value this year, per CoinDesk data.
On Thursday, over 2,000 BTC ($44 million) was ported to Avalanche, the largest single-day BTC.b mint on record, according to data sourced from pseudonymous analyst 0xAcid's dashboard on Dune Analytics. That has lifted the total circulating supply of BTC.b to 8,572.
According to 0xAcid, half of the bitcoin minted on Thursday has been moved to BENQI Finance. BENQI Finance is an Avalanche-based decentralized finance protocol, which allows users to lend, borrow and earn additional yields from digital assets.
In June 2022, Avalanche added support for bitcoin on its cross-chain bridge, allowing BTC holders to deploy their coins in the Avalanche-based decentralized finance (DeFi) ecosystem to generate extra yield. BTC.b has seen impressive growth since then, surpassing the number of coins held in the Lightning Network.
A crypto bridge is a tool that facilitates interactions between the two economically and technologically separate blockchains. Bridges became a target of hackers last year, accounting for about 70% of the total exploits in the crypto industry last year, according to forensics firm Chainalysis.
The record BTC.b mint comes as the WBTC supply fell by 15% to 153,164 in February, reaching the lowest since March 2021. Apparently, bankrupt crypto lender Celsius, a well-known WBTC holder, redeemed a large amount of WBTC, causing a sharp drop in the token's supply.
WBTC, issued by Bitgo, is an ERC-20 token based on the Ethereum network with its price pegged 1: with bitcoin. The token's supply peaked at 285,000 in April last year and has been falling ever since.
The Avalanche community considers BTC.b a better option than WBTC, considering Avalanche offers users the ability to mint and redeem BTC.b anytime with the bridge in a non-custodial browser extension Core, eliminating the need for intermediaries. It provides more control to users, unlike WBTC, which relies on merchants to initiate the process of minting and burning.
According to Emperor Osmo, an anonymous writer for Cosmos-based automated market maker Osmosis, the investors in AVAX, the native token of Avalanche, are yet to take notice of BTC's growing use in DeFI, as evidenced by BTC.b's rising supply.
"Over $200M of BTC has been bridged to Avalanche [to date]. The BTC DeFi narrative is definitely not priced in for AVAX," Osmo tweeted early Friday.
At press time, AVAX traded nearly 6% lower on the day, near $16, the lowest since Jan. 20. The cryptocurrency has seen a 50% appreciation in its market value this year, per CoinDesk data.
Bitcoin-Bridged to Avalanche Reaches Record Daily Mint of Over 2K BTC
Jump to: