Bitcoin needs an Ethereum VM to reach its full potential — Web3 exec Cryptocurrency scrgruppen
A Web3 executive argues that mainstream adoption of Bitcoin (BTC) will not happen until it is linked to the Ethereum Virtual Machine (EVM) – the first entry point for many real-world assets moving across the chain.
Speaking to Cointelegraph, founder of cross-chain infrastructure company Botanix Labs, Willem Schroe, claimed that Bitcoin “needs to start playing in the EVM world” so it can build real-world use cases to increase its adoption and utility.
“Bitcoin is the most technologically secure and truly decentralized protocol [and] “The value-added mechanism has proven to be the application layer of the global financial system,” Sharwi said.
Our Botanix protocol places Ethereum as a layer 2 solution on top of it #Bitcoin.
We’ve added Ethereum to the secure foundation of the Bitcoin network to harness the security of its proof-of-work mechanism.
Also enjoy the ease of Ethereum development.
— Botanix Labs (@BotanixLabs) September 25, 2023
While bitcoin is typically used as a peer-to-peer payment system or store of value, Shroy said its potential will not be realized unless the cryptocurrency can connect to the broader financial system, such as stock and commodity markets.
Linking Bitcoin to real-world assets based on Ethereum, stablecoins, decentralized finance, and non-fungible tokens via EVM is the first step in this direction, Shroy said.
“This is a tremendous amount of value and development waiting to happen.”
Schroé’s Botanix Labs aims to connect the Bitcoin and Ethereum ecosystems through “Spiderchain” – a Proof-of-Stake Layer 2 that implements EVM-to-EVM bridges to enable Bitcoin to interact with EVM.
Bitcoin and Ethereum may seem contradictory, but they can coexist and complement each other.
However, this does present some challenges.
Cross-bridged multi-chain ecosystems can involve security and centralization risks, hindering the possibility of collaboration.
— Botanix Labs (@BotanixLabs) October 2, 2023
The pledged assets are secured through a decentralized multi-signature mechanism, the design of which does not require Bitcoin to be forked.
Shroy believes current solutions that involve wrapped bitcoins on Ethereum and other EVM-compatible chains are problematic, and says they are vulnerable to oversight and regulatory scrutiny, as they are operated by centralized, US-based BitGo.
A similar proposal to bring Ethereum functionality to Bitcoin through “chains of command,” also known as Bitcoin Improvement Proposition-300, is also being proposed, which Bitcoin developers are discussing again. If implemented, it would allow “side chains” to be built on the network.
On October 9, Bitcoin developer Robin Linus released a white paper titled “BitVM: Computing Anything on Bitcoin,” which details how optimistic Ethereum-like smart contracts could be created on the Bitcoin network.
Related: Bitcoin users in El Salvador teach 12-year-olds how to send satellite messages
Unlike Spiderchain, BIP-300 will require Bitcoin to run on a soft fork and will be activated by miners – similar to the Taproot soft fork in November 2021 that paved the way for Ordinals and BRC-20 tokens that mimic NFTs.
BIP’s creator, Paul Sztrock, says those who favor BIP-300 believe it will provide new privacy and expand the range of use cases for Bitcoin, among other benefits.
So far in @tabconf:
* Many professional Bip300 use cases – common use cases are privacy, measurement and experimentation (Get new OP codes now)
*A very common question is: When is my debate with Peter Todd (Friday at 2pm)
* Many complained about inappropriate dialogue on Twitter and bullshit propaganda
*…– Paul Stork (@Truthcoin) September 7, 2023
However, not everyone likes the idea of expanding the Bitcoin ecosystem beyond its current use cases.
Corey Klipsten, CEO of BTC-only exchange Swan Bitcoin, Believes Chains and solutions that bring other assets into Bitcoin will lead to an influx of scammers.
Saif Al-Din EmmausThe author of The Bitcoin Standard opposes the idea of issuing altcoins on Bitcoin, stating that “good money” is the only token needed.
People think tokens are a good idea only because we live in a world of broken money. Good money is the only symbol anyone needs. Bitcoin will remove tokens from the world. https://t.co/q8Nhc7XcOX
– Saif Al-Din Ammous (@saifedean) August 28, 2023
However, Shroy said he believes the combination of Bitcoin and Ethereum could produce a new set of applications “with decentralization and security as first principles.”
“EVM is the winning virtual machine, and Bitcoin is the best money,” he said.
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