Polkadot will not stay at the door of DeFi. From the beginning of next year, the blockchain will therefore welcome Bitcoin. Holders will be able to tokenize their bitcoins in the form of PolkaBTC tokens.

The explosion in the space of a few months of transactions in the DeFi ecosystem is arousing appetites. Binance, for example, is mobilizing $ 100 million to develop its own ecosystem.

But DeFi and its returns are also appealing to bitcoin holders. To interact with the DeFi protocols of the Ethereum blockchain, users must first tokenize their Bitcoin.

Securely exchange BTC for PolkaBTC

The value of these tokenized tokens exceeds $ 1.5 billion. These indicators fuel Polkadot's ambitions. In partnership with Interlay, the company is developing a BTC "parachain". This interoperability between the Bitcoin and Polkadot blockchains will therefore make it possible to tokenize bitcoin.

Very concretely, with a ratio of 1 to 1, an investor will convert his Bitcoin into a token of equivalent value, PolkaBTC, on the other blockchain. The token will then be usable "in a wide range of applications, including decentralized exchanges, stablecoins and lending protocols."

There is no lack of protocols allowing this tokenization, however. Wrapped BTC (WBTC) is thus very popular with users with the value of tokens reaching one billion dollars.

Launch of tokenization at 1er quarter 2021

Polkadot must therefore stand out. “Under the hood, BTC-Parachain is implementing XCLAIM, the only financially trustless, permissionless, censorship-resistant cross-chain framework – and backed by top-level research,” she points out.

The publisher of course insists in particular on the protection of bitcoins through guarantees for their users. “You can always exchange PolkaBTC for BTC or be reimbursed in the currency of the collateral at a favorable rate. In the event that a Vault behaves badly, you will be reimbursed from the Vault's collateral, ”he promises.

The launch of tokenization on the Polkadot blockchain is for early 2021. According to the project roadmap, a first test will take place in November. A beta will follow in January and then a full code audit in February. PolkaBTC must be in service at 1er quarter 2021.

LEAVE A REPLY

Please enter your comment!
Please enter your name here