Friday, 8 December 2023

Crypto News

Bitcoin needs Ethereum VM to reach its full potential — Web3 exec

Bitcoin needs Ethereum VM to reach its full potential — Web3 exec

Mainstream Bitcoin (BTC) adoption won’t happen until it bridges to the Ethereum Virtual Machine (EVM) — the first point of entry for many real-world assets moving on-chain, a Web3 executive argues.

Speaking to Cointelegraph, the founder of cross-chain infrastructure firm Botanix Labs, Willem Schroé, claimed Bitcoin “needs to start playing in the EVM world” for it to build real-world use cases to increase its adoption and utility.

“Bitcoin is the most technologically secure and truly decentralized protocol [and] the EVM has proven itself to be the application layer for the global financial system,” Schroé said.

While Bitcoin is typically used as a peer-to-peer payment system or for storing value, Schroé said its potential won’t be fulfilled unless the cryptocurrency can connect to the broader financial system, such as with security and commodity markets.

Connecting Bitcoin to Ethereum-based real-world assets, stablecoins, decentralized finance and nonfungible tokens via the EVM is the first step in that direction, Schroé argued.

“That’s a huge amount of value and development waiting to happen.”

Schroé’s Botanix Labs aims to connect the Bitcoin and Ethereum ecosystems through its “Spiderchain” — a proof-of-stake layer 2 that implements EVM to EVM bridges to enable Bitcoin to interact with the EVM.

Staked assets are secured by a decentralized multisignature mechanism, and its design doesn’t require Bitcoin to be forked.

Schroé believes the current solutions involving wrapped Bitcoin on Ethereum and other EVM-compatible chains are problematic and argues they are susceptible to censorship and regulatory scrutiny, as they’re operated by the centralized United States-based company BitGo.

A similar proposal to bring Ethereum functionality to Bitcoin is also being proposed through “drivechains,” also known as the

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