Avalanche Builds Bitcoin Bridge Via Core Wallet
On June 22, Ava Labs officially launched the Avalanche – Bitcoin bridge via Core, the crypto wallet application announced in March.
This new bridging function aims to unlock more than half a trillion dollars in value on the Bitcoin network. The bridge will tokenize the top coins in the form of an Avalanche-based token called BTC.b and is fully usable on DeFi v such as Platypus and TraderJoe.
The bridging process works by locking up an amount of Bitcoin and issuing an equal amount of tokens on the platform, also known as wrapping. This wrapped setup requires no custody, unlike other popular Ethereum-based Bitcoin encryption solutions like Wrapped Bitcoin (WBTC).
For every WBTC that exists on Ethereum, there is one Bitcoin held in a centrally controlled smart contract, which some critics believe exposes users to risk issues. Ava Labs claims its product is an exception:
“We are still wrapping BTC to BTC.b. The difference is that we are starting with native BTC (instead of wrapped WBTC on Ethereum), then wrapping the asset on Avalanche to BTC.b.”
The bridge is based on Intel SGX (software guard extension), the same technology used in Avalanche’s bridge that connects to Ethereum. In the future, this bridge will give Bitcoin users access to the subnets as well as other blockchains like Ethereum.
Since the beginning of 2022, Avalanche has become one of the most active and frequent platforms on the market. It has $2.74 billion in TVL across the ecosystem, according to DefiLlama. Prior to the above news, AVAX spiked 14% and is currently trading at $19.4.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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