Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Polkadot is a platform that allows diverse blockchains to transfer messages, including value, in a trust-free fashion; sharing their unique features while pooling their security. In brief, Polkadot is a scalable heterogeneous multi-chain technology.
The new currency currency is a medium of exchange that defines value. functions as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. for Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. within the network a network refers to all nodes in the operation of a blockchain at any given moment in time. of Polkadot, and the company responsible indicated that it operates under a model similar to that of Wrapped Bitcoin, but which implements greater decentralization the handover of control from a central authority to several different custodians. with more guarantees for the funds.
- InterBTC (iBTC) is a token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. designed by the Interlay
- It will function as a Bitcoin equivalent in the network of Polkadot
- It implements systems that make its management more decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. and collateralized.
The decentralized network for the creation and use of stablecoins,Interlay, recently announced the launch of a new token called the InterBTC (iBTC), which is listed as a wrapped version of Bitcoin which operates over the network of Polkadot.
According to information published by the media CoinDesk , This new token works in a similar way to the way the many assets involved operate. Therefore, the idea of this proposal is to allow Bitcoin users to have a token equivalent to this digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currency that works over the network of Polkadot, and, therefore, can be used in any of the services that make use of such Blockchain, mainly decentralized finance projects (DeFi).
iBTC: El Bitcoin wrapped that works on Polkadot
Its function is similar to those of other wrapped assets, for exampleWrapped Bitcoin (WBTC), only that it runs on the aforementioned network instead of the Ethereum, and this allows other mechanisms to be applied to ensure decentralization throughout the process, guaranteeing at all times that a iBTC can be exchanged for a BTC and vice versa in a 1 – 1 ratio.
One of the important differences with respect toWBTC, is that iBTC is based on a trusted third-party model, which ensures the security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. of funds through the use of decentralized vaults that implement collateral, rather than relying on the dynamic of external traders and custodians employed by theWrapped Bitcoin. This is made possible by making use of overcollateralized vaults run by members of the Interlay, los cuales deben depositar diversos activos como refugio en garantía.
Therefore, the mechanics of receiving iBTC could be summarized as follows:
- First, the vault must receive tokens as collateral to guarantee its operation.
- The user first sends and blocks the BTC you wish to put up as collateral
- The responsible vault releases a quantity of iBTC similar to the BTC stored at
- When the user wants his or her BTC, should only return the iBTC originally received
- When this happens, the custodian a custodian is responsible for safely holding assets for an institution or individual for a variety of purposes. will be able to receive the collateral originally provided.
The collateral funds of the vault are blocked by Interlay. The latter ensures that if the BTC are not returned to the user, the network takes the assets as collateral and thus reimburses the owner of the bitcoins.
Polkadot and its proposal
The announcement of the arrival of iBTC to the ecosystem of Polkadot comes to place in the middle of the growing boom of the network in recent times, this because of its proposal to interconnect diverse networks through its dynamic of parachains.
Previously, at the end of last June, Polkadot announced the incorporation of a Gov2 system, which ensures more decentralized and flexible governance. This leaves behind the so-called Council and replaces it with a Referendum, voting system where anyone can make proposals and approve them.
At the time, the CEO of Polkadot, Gavin Wood, comentó:
“On Gov2, anyone can start a referendum at any time, and can do so as many times as they want. Anyone can also vote in these referendums. There are no explicit limits on the number of referendums that are open to vote on at any one time.”
Previously, in May of this year, Polkadot lanzó XCM, a messaging system consensual cross-party (XCM) that allowed for the first time send tokens natively through parachains. The upgrade brought the network closer to its goal of becoming a fully interoperable multi-chain ecosystem.
Regarding iBTC, the team of Interlay indicated that they also plan to bring their token to other networks such asEthereum, Avalanche y más.
- Alchemy expands into Polkadot ecosystem by integrating with Astar parachain parachains are application-specific data structures that run in parallel to each other within Polkadot.
- Polkadot to take on new system of governance in the world of cryptocurrencies, governance is defined as the people or organizations that have decision-making powers regarding the project. in pursuit of greater decentralization
- Polkadot goes multi-chain after launching XCM, “cross-consensus messaging” system
Article by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash