Topic: [Idea] Trustless bitcoin wrapping for rollups/sidechains (Read 85 times)
To better illustrate idea: This will enable something like trust-less cross-chain Bitcoin ETF. On other chains will be traded permission to unlock bitcoin within a year (or customized period of time) . In case of ETF price increase, more people will be interested to lock their BTC and arbitrage price. In case of ETF price drop, there will be demand to burn side chain tokens and release BTC from script. Anyway it will create amazing financial product, stimulate on-chain activity and will create demand for block space and BTC itself.
Doesn't liquid already implement something like this (the lighting network sort of does too) - not sure how they deal with disputes when funds are moved. I can't decide if thats the same as the roll up you've mentioned as the only sources I can find are from the upgrades to ethereum and polygon.
Yeah, lightning looks great.I've tried to understand how Liquid works, but as I found it relies on complex system of federation, and underneath there is something like trusted PC which reminds me bridge. Anyway, liquid is great too.
What I want to point with respect to attempts to build trust-less scalable solutions for settlements and on-chain trading like lightning and liquid - there is something big emerged outside of bitcoin, and it will be great if BTC could inter-op itself by script and democratize it's wrapping adoption by other chains.
Regarding disputes - I think it could be solved with locks (like 1 year) to transfer locked BTC out of script plus include side chain block number somehow to signature. Anyway - I'm not an expert in this field, just suggestion from the user perspective.
chain could be overridden by aliens who has more hashing power
I just want to clap for this statement haha
Doesn't liquid already implement something like this (the lighting network sort of does too) - not sure how they deal with disputes when funds are moved. I can't decide if thats the same as the roll up you've mentioned as the only sources I can find are from the upgrades to ethereum and polygon.
Maybe this is a stupid idea, but as a naive crypto user, I'm wonder is there a way to wrap bitcoin by trust-less script to unleash it's cross chain adoption?
For now there are a lot of different chains which has trust-less DEXes, but in most of them BTC is wrapped by centralized custody (like WBTC) or just uses a hack-able bridge.
Also i found this Rollups on bitcoin
Rollups on bitcoin, which uses BTC as Data & Consensus layer, with faster settlements and execution layer.
But for now all these solutions not well implemented and adopted.
What do you think, is it possible to wrap BTC in a trust-less way to ease integrations with other chains/rollups?
This will significantly increase demand for BTC as of now settlements layer on BTC can't meet users expectations.
Of course, i know that BTC has no finality and chain could be overridden by aliens who has more hashing power, but even if feature will be implemented as sending BTC to some script, and after that release BTC from script by submitting verifiable signature which bound not to private key, but to proof that abstract side chain token has been burned, this will be enough for most use cases.
For now there are a lot of different chains which has trust-less DEXes, but in most of them BTC is wrapped by centralized custody (like WBTC) or just uses a hack-able bridge.
Also i found this Rollups on bitcoin
Rollups on bitcoin, which uses BTC as Data & Consensus layer, with faster settlements and execution layer.
But for now all these solutions not well implemented and adopted.
What do you think, is it possible to wrap BTC in a trust-less way to ease integrations with other chains/rollups?
This will significantly increase demand for BTC as of now settlements layer on BTC can't meet users expectations.
Of course, i know that BTC has no finality and chain could be overridden by aliens who has more hashing power, but even if feature will be implemented as sending BTC to some script, and after that release BTC from script by submitting verifiable signature which bound not to private key, but to proof that abstract side chain token has been burned, this will be enough for most use cases.
Jump to: