A new Bitcoin bridge enters the chat
This is a very interesting new release of
@XLinkbtc from the
@ALEXLabBTC team! 👏
I was able to bridge from mainchain to
@Stacks and provide liquidity in a pool with 2 transactions. (1 moderate fee on Bitcoin and a fraction of a penny on Stacks)
A few notes that stand out:
- The bridge doesn't appear to use validators like a traditional bridge. Because Stacks nodes and smart contracts can read Bitcoin state. The smart contract is watching and listening to transactions and confirmations on the Bitcoin side before "minting" aBTC on the Stacks side. (Read: Very cool and can't be done anywhere else)
- Stacks has a decently robust library of applications including DeFi, NFTS, Games, Identity Systems, etc.
- aBTC is an interesting development. Unclear how it'll be used by the ecosystem. At minimum, You can play with the tech and see how sBTC can be used as they are the same token at the protocol level.
Very excited for the future of using Bitcoin in new ways easily.
This bodes well with my cross-chain thesis.
nitter.app/JakeBlockchain/status/…
The future is not cross-chain. (Not in the way you've been told)
There's been a narrative over the last year and a half that the future is cross-chain. The idea is highly liquid crypto assets like BTC, and ETH will freely flow across bridges to all relevant ecosystems and be used in the best applications.
I see no evidence this will be the case.
The reason why is a classic cold start problem.
Users first want applications before they consider bridging to a new chain.
Developers want to see liquidity and users before they support a new token.
(It's the same problem today with Bitcoin merchant adoption and customers)
Someone has to go first.
The cross-chain thesis that might play out is within ecosystems.
BTC the asset will freely flow between Bitcoin "L2s" because both sides of the market believe in the asset.
The question for them is more about trust assumptions of the underlying chain and what useful applications exist on it.
All BTC chains right now are fighting for adoption on this front.
If you're building an app to make BTC useful on Solana, Ethereum, or something else outside of the accepted Bitcoin ecosystem.
You should probably pivot and move to a chain with closer gravity to the L1.
Hopefully, this is helpful to someone.
*** Couple other data points to support my claim***
wBTC is frequently cited as an indicator of BTC's cross-chain potential. Despite its high TVL, few applications support wBTC and a relatively low TVL in DeFi pools. Additionally, there's no straightforward method for users to convert native BTC into wBTC directly. This situation suggests that ETH holders are likely using wBTC to gain exposure to BTC by exchanging ETH for BTC and holding onto it (not deploying it).