Polkadot is one of the largest cryptocurrency projects and currently ranks eighth in terms of total market capitalization.
Now the team has announced that trustworthy packaged Bitcoin will enter its ecosystem via Interlay in early 2021 – a framework that enables allowed and permissionless blockchains to connect and interact.
Polkadots BTC relay effort
The framework known as Interlay, which has been in development since 2018, aims to allow different blockchains to seamlessly interact and connect with and without permission.
According to a new version, Polkadot’s first trustworthy packaged Bitcoin will be launched in early 2021. The name PolkaBTC is intended to mark a decisive step towards a fully interoperable ecosystem.
Interlay had previously published a technical specification and a working PoC implementation. After a successful pilot project, the team is now accelerating efforts to complete the BTC Parachain in the first quarter of next year. It is also funded by a follow-up grant from the Web3 Foundation.
Once deployed, users can mint 1: 1 Bitcoin-backed assets on Polkadot, known as PolkaBTC.
A couple of things stand out when it comes to the nature of PolkaBTC. It is instantly trustworthy and similar to Ren’s BTC solution, the bridge has no central authority as it is operated by a decentralized network of individuals, companies and community members.
It is also completely open as anyone can participate in the operation of the bridge.
Increase in the amount of BTC on Ethereum
As CryptoPotato reported in early September, the amount of Bitcoin transferred to the Ethereum network is increasing significantly.
At the time of this writing, data from DeFi Pulse shows that there are currently over 105,000 bitcoins valued at more than $ 1.2 billion floating on Ethereum’s blockchain.
This is mainly due to the DeFi boom as the total value set in various protocols exceeds $ 11.2 billion.
In any case, as Polkadot joins, this is likely to increase.
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