The prospect of Bitcoin on Ethereum blockchain has at all times fascinated the crypto followers. Now, MakerDao has achieved this feat by utilizing a ‘Wrapped Bitcoin.’ The decentralized group, Maker Dao, has full authority over the MakerDao Protocol, and so they have decided that a new collateral asset known as ‘Wrapped Bitcoin’ (wBTC) is a perfect approach to deliver Bitcoin on Ethereum blockchain.
Bitcoin holders can now flip their BTC into WBTC (bringing Bitcoin to the Ethereum blockchain), after which use it to generate Dai.https://t.co/STskGXQeff
cc @WrappedBTC
— Maker (@MakerDAO) May 3, 2020
In keeping with the announcement, the MakerDao protocol will now provide transactions between BTC and ETH utilizing a wBTC, which is an ERC20 token. Such a setup will undoubtedly enhance the liquidity quotient on the platform.
Including Bitcoin on Ethereum blockchain has its benefits
Curiously, Bitcoin is the fourth providing on the MakerDao DeFi platform. There are already three collateral asset classes within the ecosystem, specifically USDT, ETH, and BAT. Merchants are already transacting utilizing these asset sorts. With the introduction of Bitcoin on Ethereum blockchain, the wBTC Maker Vaults would now be permitted to make sure acceptable Dai era.
With the launch of BTC on ETH blockchain, liquidity crunch will likely be sorted to an amazing extent. The entry of wBTC is useful for your complete DeFi realm, together with the decentralized exchanges.
Bringing Bitcoin on Ethereum blockchain a technical milestone
Including Bitcoin on Ethereum blockchain wasn’t simple – each technically and policy-wise. Now, Bitcoin customers will likely be making a Dai utilizing their wBTC to create a vault. Oasis Borrow will deal with the duties of vault administration. The five-step course of includes CoinList registration, fulfilling the KYC necessities, wrapping Bitcoin to wBTC, endeavor transaction with pockets, and lastly, making a wBTC vault to construct a brand new DAI.
With the rise of DeFi, the entry of BTC was solely a matter of time. Earlier, there have been speculations whether or not or not BTC would enter the DeFi ecosystem. However with the launch of Bitcoin on Ethereum blockchain, all these doubts have been put to relaxation.
