Crypto neighborhood has been seeing plenty of efforts lately in injecting Bitcoin into the DeFi ecosystem. The most recent implementation of BTC on Ethereum blockchain, renBTC[REN] and went dwell simply final week.
Loong Wang, CTO, and Co-founder of Ren appeared on a latest podcast and talked about this new implementation. He famous that the principle objective for RenVM was to operate as a bridge between not solely Bitcoin and Ethereum however any conceivable pair of blockchain-based tokens, together with stablecoins like Libra and China’s DCEP. Additional noting how Ren was permissionless, decentralized and trustless, he said,
“You can move Bitcoin around. This is a transfer of value, but right now we can’t do that between chains. If I want to send you Bitcoin, I have to send you Bitcoin on the Bitcoin blockchain and I don’t really have an other option. But with Ren, it’s basically one chain and the user does not have to worry about different chains.”
Apparently, latest knowledge had revealed that the overall variety of Bitcoin in circulation on ETH blockchain was greater than in BTC’s Lightning Community. Just a few questions come up right here. What’s the way forward for Bitcoin as an Ethereum token? What does this imply to the crypto house? And, what modifications would possibly come about in each the cash individually shifting forward?
Centralization is certainly one main concern right here; if Bitcoin or every other asset is tokenized on the Ethereum community, they’re mainly depending on exchanges that subject them. In reality, Ethereum’s Vitalik Buterin has additionally by no means been pleased with this enhance within the variety of Bitcoin-backed tokens on the Ethereum community. He has expressed his mistrust concerning the fashions of assorted tokens in a number of interviews. DeFi is likely to be in its early days however these questions need to be addressed by the neighborhood as a result of if that is resulting in centralization, then key beliefs of cryptocurrency is likely to be in danger.