Transacting BTC on the ETH Network?
Start from the Beginning?
Since original conception of Bitcoin, there has been "companion protocols" which allow for greater levels of usability. Lightning Network allows for much faster and cheaper transactions. While Liquid Network supports the traders in the space.One of the many benefits of decentralized and open source software - global development! An interesting trend is developing among Ethereum Maximalists, and this blog will serve as an investigation into their recent behavior..
This is the ecosystem where tokenized protocols can thrive. ETH is much more flexible and dynamic with the ability to support and develop dApps. Programmable interfaces between users allows for Decentralized Finance (Defi), which is an intriguing opportunity.
An interesting application of these technological advancements is the ability to transact/trade in psuedo-Bitcoin. Its completely possible to "Tokenize Bitcoin" and loan it out via the diverse variety of emerging defi projects. One could compare this to the idea of loading a giftcard with native currency. You're still make the purchase in the intended native currency (Bitcoin/dollars), but now you've got a unique way to transact/store/spend (ETH/Giftcard).
- Another way to think about this concept is that you are getting all the benefits of the ETH network, but the value being exchanged is in Bitcoin. All of this Bitcoin is now called "Off-Chain Supply".
Lets Look at the Data:
Wrapping it all up:
I just wanted to differentiate between the progressions which have been happening for Bitcoin. First is the companion protocols like Lightning Network which are created internally by the community for use within the same project. Second is the off-chain protocols which are externally derived and allow for outside applications of Bitcoin. There is a large conceptual difference between the two and which is important to understand - but the commonality is a large benefit and progressive development of the projects to allow for synchrony and mutual success.