The great divide between Bitcoin and Ethereum has pursuits by Summa co-founder, James Prestwich.
His team is working with the Cross-chain working group who are fellows in a startup to roll out a new protocol which will be based on both systems: Bitcoin and Ethereum.
The group held an initial meeting on 15th August 2019 with over 40 key participants from among them reps from the mutli–operability protocols; Cosmos and Xpring, which is an investment arm of Ripple.
Prestwich told CoinDesk that their goal will be to create a platform for developers and not employees of the base chains. He also reported that almost ten firms have shown interest in joining the cohort creating the tools to work across chains though no official membership had been settled upon.
He referred to it as a wrapper but a decentralized one, actually he said he’d prefer to refer to it as a “side-chain mechanism” Matt Luongo, the CEO of Thesis referred to it as a trustless peg, a supply peg between two chains.
In summary, BTC deposits will be tied to smart contracts which will need several signatures to release the finds.
The key owners of the crypto as collateral will lock and repossess whenever holders flout the agreements. For now, the depositor is allowed to hold Ethereum tokens that are equivalent in amount and that is comparable with BTC (tBTC)
Therefore, users can carry out Ethereum transactions similar to that of secure debt with the creator of DAO’s Stablecoin, DAI, yet earn BTC at the final end. There’s a clear demand for the Dollar pegged loans with DAI, which can be cashed for fiat and refunded to facilitate the release of crypto. According to DeFi Pulse, an estimated $256 million crypto is already locked up specifically as Make DAO loans.
Luongo further added that holders of BTC are able to access loans and access to DAI. The ability of us all to access equity courtesy of BTC holding is pretty wonderful.
Charlie Noyes a Thesis investor from Paradigm had this to say to CoinDesk, tBTC is a signifies a strategic achievement regarding past efforts to make BTC more valuable, that’s without a compromise on Bitcoin protocol, retaining the security and decentralized frameworks.
The working technical working group targets to roll out an app-based ether with access to BTC and a tBTC main-net by Q4 this year.
“Several blockchains will work seamlessly in communication and interaction” Carlson-Wee said. “Thinking long-term is the inception of universal blockchain interactions, with tokens moving across blockchain freely. It’s the initial step to an inevitable tomorrow.” Luongo made the conclusion, “the motivating factor behind tBTC is to have both start-ups going at it together as opposed to each taking a centered approach at it. We welcome other interested partners to come and join us, contribute and launch collectively