Smart contract platform that handled RSK has publicized the beginning of a Bitcoin-Ethereum bridge. The new technology allows users transfer Bitcoin into dApps developed on the RSK platform as onwards, something similar could be done via the Ethereum blockchain.
This invention reflects an improvement for interoperability between blockchain that is recognized to be pivotal for ensuring the improvement and adoption of the tech later in the future. Slowly turning into a serious issue for blockchain, interoperability has been tried to be solved using side chains or state channels developed by Plasma or Matic Network. However, core Etherum developers are still on the search for a solution to network scalability issues.
On the other hand, interoperability enables the token to get transferred from Ethereum to other blockchains to enjoy increased transfer throughput at a reduced cost. Currently, RSK performs hundreds of transactions per second which is more than Etherum does and limited to 15 pending when Eth 2.0 is activated.
RSK developers also have the chance to access Ethereum’s user base being that they are in charge of decentralized finance, it allows them the chance for RSK-based DeFi projects such as Money on Chain.
Using the Bitcoin-Ethereum bridge connect the dots
The Bitcoin-Etherum bridge allows the token to move through yet there are no change in token supply. As earlier mentioned, Money on Chain remains the first to make use of the bridge allowing Ethereum users to gain access into its BTC-enabled stablecoin developed on RSK’s smart contract platform.
However, RSK was already run on a two-way bridge like BTC blockchain allowing users to spend their Bitcoin on the platform. The new Bitcoin-Etherum Bridge is, however, an upgrade of what was obtainable as the upgrade can transfer any Ethereum ERC-20 token.
Whenever a token changes its initial blockchain, the bridge “locks” it, remitting the same amount of tokens on the other chain to maintain a constant supply.
Deploying interoperability to propel growth
Even at the World Economic Forum event in Davos, it was mentioned that one of the main Issues blockchain will experience in 2020 is interoperability. However, interoperability can be used for propelling a significant rise in crypto adoption. It would also enable transferring values amidst several blockchain networks leading to no need for an exchanging platform.
The inclusion of BTC alongside other related cryptocurrency derivatives in the growing Decentralized finance sector would propel a positive change also.