Ethereum Competitor Avalanche announced new native support Bitcoin (BTC) through its bridge solution based on its cryptoWallet-Core builds up. Following the news, its native token AVX surged higher, outperforming major digital assets like Bitcoin and Ethereum over the past 24 hours.
BTC wrapped Avalanche
Ava Lab — the foundation behind the Avalanche smart contracts platform — has launched a new bridge solution that allows users to tokenize their BTC as an Avalanche-based asset called BTC.b. The newly launched “wrapped” BTC could create the Avalanche DeFi-Ecosystem available to users of the Bitcoin network. The official blog post states:
“This allows Bitcoin holders to directly access extensive earning and earnings opportunities across the major DeFi protocols while continuing to invest BTC in their portfolio remains.”
The current BTC Bridge is only available on Avalanche’s Web3 wallet core. The post noted that the Core Chrome Extension is a customized product that supports cross-chain bridging and accessing others Blockchain-based assets enables Avalanche network.
“The Core Wallet Extension was specifically designed to support Bitcoin and the Avalanche Bridge and to address the technical issues of linking Bitcoin and EVM chains within one wallet.”
Much like wrapped BTC — a tokenized type of Bitcoin living on the Ethereum blockchain — was introduced through smart contracts at ETH, Avalanche would also lock any Bitcoin received as a deposit and mint a corresponding amount of BTC.b coming onto its network is tailored. The labs stated that the bridge would not expose users to counterparty risk and trust issues Ethereum-based packaged BTC has.
cross chain bridges
In order to bridge BTC to the Layer 1 blockchain, users must process two types of fees, including 1) BTC network fees and 2) fees that the bridge charges the user (aka Bridge Toll).
According to the post, the bridge will allow bitcoin holders to access Avalanche subnets and other blockchain networks like Ethereum.
The Avalanche Bridge was launched last year to bridge assets between the Ethereum and Avalanche networks. Compatible with the Ethereum Virtual Machine (EVM), applications and dapps on Ethereum could thus be easily transferred to Avalanche. Meanwhile, users can stake Ethereum-based assets on Avalanche’s DeFi protocols for income.
Source: Crypto News Deutsch