Interlay will launch a “tokenized bitcoin” based on the Polkadot blockchain

Interlay will launch a “tokenized bitcoin” based on the Polkadot blockchain

Startup Interlay, which received funding from the Web3 Foundation, will launch a” tokenized bitcoin ” polkabtc based on the Polkadot blockchain in the first quarter of 2021.

The developers of Interlay reported that polkabtc will be provided with bitcoin in a ratio of 1:1. The new digital asset is being created as an alternative to the WBTC and tBTC tokens that operate on the basis of Ethereum. polkabtc will not be controlled by a centralized authority and will be resistant to censorship similar to the Bitcoin network. The BTC blockchain will initially be managed by a decentralized network of community members, which includes organizations and individual users.

The internal Polkadot token (DOT) will be used as collateral for polkabtc. Any user will be able to perform the “storage” function by blocking DOT tokens as collateral. To do this, you only need to have a Bitcoin wallet and Polkadot, as well as a certain amount of DOT. Users will be able to transfer polkabtc to others or use it in decentralized applications based on Polkadot. To exchange for bitcoins, polkabtc will be burned in the BTC parachain. polkabtc can remain in the Polkadot network indefinitely, and you can exchange them for bitcoin at any time.

The first alpha testing of polkabtc is scheduled for November 2020, and beta testing with support for the necessary features will be conducted in January next year. The launch of the main network is expected in the first quarter of 2021. In addition, the management of Interlay announced that it intends to integrate polkabtc with the projects Equilibrium, Moonbeam and Polkaswap, created on the basis of the Polkadot blockchain.

Recall that in the spring, startups Keep Network and Summa also developed a” tokenized bitcoin ” tBTC. It was intended to provide access to decentralized financing on Ethereum without the need to exchange BTC for ETH. However, a few days after the launch of tBTC, its issue had to be suspended due to the discovered vulnerability.