Cryptocurrency

RSK launches a “bridge” between Bitcoin and Ethereum

The parent company of the platform of contracts based smart in Bitcoin, RSK, announced the launch of a token that serves as a “bridge” for Ethereum. IOV Labs, the developer based in Gibraltar, announced that this bridge interop this week. In addition, he explained that the same would enable users to cross digital assets based on RSK and Ethereum. These include tokens Ether and ERC-20, through different protocols. But, how is this possible? Therefore, when a user transfers the tokens, the contract smart the bridge blocks the coins original. And, in its place, adopt a corresponding amount of new cryptocurrencies in another string. In this way, the tokens based on Ethereum can be transformed into RRC20 of RSK. Which, in a reverse manner can also be converted into tokens ERC777 of Ethereum. This would also allow the funds have in Bitcoin can be changed quickly and safely by ETH. In addition, the protocols of interoperability, facilitate that the projects operate in different chains of blocks. The decentralized applications (DApps) can attend to a broader base of users. They can even cater to the needs of those users who have remained isolated in closed networks. In turn, the projects can take advantage of specific features of different chains of blocks simultaneously. One of the strategists of RSK in IOV Labs, Adrian Eidelman, said: “interoperability has been a cornerstone of the vision of RSK from the beginning. We believe that we can offer the benefits of Bitcoin to users of Ethereum and connect these communities of developers respective is a crucial step for the ecosystem Blockchain in their set”.

Walking towards interoperability

There are other protocols that provide interoperability between Bitcoin and Ethereum. For example, Wanchain launched a bridge symbolic between the two networks in 2018. On this project, Eidelman said that Wanchain focuses on connecting Blockchains being a “middleman”. The difference of RSK is that it really manages to combine the networks. This allows both ecosystems (Bitcoin and Ethereum) to take advantage of the strengths of the other. For its part, the protocol of the stablecoin of Bitcoin, Money on Chain, that uses BTC as collateral for new tokens, you said that you would use the new bridge to RSK. This with the aim of crossing their stablecoins in the ecosystem of Ethereum. The co-founder of the project, Maz Carjuzaa, stated that the new interoperability would combine the security and the “global recognition of Bitcoin with the vibrant ecosystem DeFi developed currently in Ethereum”. The applications for this “bridge” between the two cryptocurrencies are pretty broad. However, this remains a field that has been little explored. It is for this reason that companies are expected to allocate more resources to this sector. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.

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