RSK announced the launch of a new ETH-BTC two-way bridge within its RSK Infrastructure Framework (RIF) platform, which allows connecting the Ethereum and Bitcoin blockchains to bring DAI and other DeFi products to Bitcoin users.
The RSK Network platform, RSK Infrastructure Framework (RIF), now integrates a new bidirectional ETH-BTC bridge in RSK ETH Token Bridge, which makes it possible for the user community to Bitcoin can enjoy several of the products available on decentralized finance platforms (DeFi) within the Bitcoin (BTC) blockchain. An example of this is the accessibility that Bitcoin users now have to the stablecoin DAI.
The new two-way bridge enables MakerDAO's DAI stablecoin, which operates as an ERC-20 token within the MakerDAO blockchain, to Ethereum, accessible to all DeFi products that are backed by Bitcoin. In this way, users of this blockchain will have greater accessibility to DeFi products and will be able to use them on their preferred blockchain without any restrictions. In addition, the platform developers point out that the implementation of token bridges, such as RSK ETH Token Bridge, together with stablecoins creates an efficient “low volatility” payment method between different networks.
RSK is one of the platforms of smart contracts the most secure in the world, designed to take full advantage of the Bitcoin network by integrating Ethereum products such as smart contracts, instant payment networks, digital identification systems and distributed storage, ecosystems for the creation of own tokens and more, all without altering the original operation of Bitcoin.
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An idea, a reality
The developers of RSK and the two-way bridge explain that the overall vision of the project is for each blockchain to have a bridge smart contract, so that the bridge on one blockchain can receive and lock ERC-20 tokens and then issue and send those tokens to the bridge contract on the other blockchain. Once the blockchain bridge receives the tokens, the Federation, which is the body in charge of transmitting tokens from one contract to another, will mint the ERC-20 tokens involved in the contract on the receiving blockchain.
Source: RSK Network
This is how the two-way ETH-BTC bridge works, bringing DAI and other tools and assets that power decentralized finance into a Bitcoin, MakerDAO, and RSK environment, along with RSK’s RIF token community.
The potential of DeFi in Bitcoin
The integration of the DAI stablecoin into Bitcoin also allows for the demand for digital assets and DeFi applications to be boosted without being hindered or affected by the high gas fees that occur on the Ethereum network. At the same time, the connection of these digital assets and applications to the Ethereum blockchain and its community of developers and users is maintained and guaranteed. In reference to this, MakerDAO co-founder and CEO of the Maker Foundation, rune christensen, pointed out that:
“RIF’s integration with DAI creates a new world of opportunities for the Bitcoin community to participate in DeFi”
Likewise, the CEO and co-founder of IOV Labs, Diego Gutiérrez Zaldívar, says that the integration of the DAI stablecoin into Bitcoin represents a significant step towards the adoption of Bitcoin DeFi. This integration allows the development and growth of the DeFi ecosystem on Bitcoin to be boosted so that users can lend, borrow, trade and earn interest on their bitcoins without ever losing control over them. Gutiérrez Zaldívar assures that the potential of Bitcoin DeFi has only just begun and there is still much more to come.
Greater scalability and performance
The RSK developers responsible for the new DAI-BTC integration pointed out that there are several other “token bridge” offerings on the market that integrate DAI with the Bitcoin ecosystem, such as Chainlink and Aave. However, RSK guarantees a level of scalability far superior to that of these other platforms, thus ensuring that its innovation has a great competitive advantage over its adversaries in the market.
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