• Latest
These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It

These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It

August 16, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Tech

These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It

coinnewsdaily by coinnewsdaily
August 16, 2019
in Tech
0
These Bitcoin Users Want DAI and DeFi – Here’s How They Plan to Get It
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022

Summa co-founder James Prestwich wants to bridge the great divide: bitcoin vs. ethereum.

Bitcoiners notoriously hate the ethereum-centric world of decentralized finance (DeFi), fueled by automated loan software. But two blockchain startups, Summa and Keep, are launching the Cross-Chain Working Group to bridge that divide with a protocol for using bitcoin on ethereum-based systems.

The group hosted its first meeting on Thursday with more than 40 participants, including curious representatives from interoperability protocol Cosmos and Ripple’s investment arm, Xpring.

“The goal is to provide a platform for developers, other than those employed by a base chain, who work across chains,” Prestwich told CoinDesk.

He said nearly 10 other companies have applied to join this group making tools for developers to work across blockchains, although official membership is yet to be determined.

“It’s a wrapper but it’s a fully decentralized wrapper. I’d actually call it a new sidechain mechanism,” Matt Luongo, CEO of Keep’s parent company, Thesis, told CoinDesk. “It gives your a trustless peg, a supply peg, between the two chains.”

In short, the bitcoin is deposited with a smart contract that requires multiple signatures to unlock funds. Key holders lock up crypto collateral, like ether, which the depositor can seize if the holders misbehave. In the meantime, the depositor is essentially given a crypto equivalent of ethereum-compatible tokens that represent the bitcoin, called tBTC.

As such, the user can conduct ethereum transactions like taking a collateralized debt position with MakerDAO’s stablecoin DAI, yet eventually cash out the results as bitcoin. There is clearly demand for dollar-pegged DAI loans, which are generally liquidated for fiat then paid back to unlock the crypto collateral. According to DeFi Pulse, there is roughly $256 million worth of crypto locked in MakerDAO loans alone.

“Now bitcoiners can get loans and get access to DAI,” Luongo said. “All of us being able to get access to the equity of our bitcoin holdings would be pretty powerful.”

It takes a village

Summa investor Charlie Noyes of Paradigm told CoinDesk tBTC represents “a meaningful improvement over previous efforts to make bitcoin more extensible,” without compromising on bitcoin’s security or decentralized ethos.

The working group’s goal is to launch an ethereum-based tester app with access to bitcoin this fall and a tBTCmainnet by Q4. Keep investor Olaf Carlson-Wee of Polychain Capital told CoinDesk he sees this protocol as “critical infrastructure” for the broader ecosystem.

“Different blockchains, instead of being siloed, will be able to communicate with one another and interact with one another,” Carlson-Wee said. “When you think longer term, is the start of a universe of interaction across blockchains … where tokens can freely move across blockchains. This is the first step toward that inevitable future.”

Speaking of the motivation behind forming this group to make tBTCl, rather than both startups doing it proprietarily, Luongo concluded:

“We want other folks to be able to come in, contribute, and help launch this with us.”

Summa founder James Prestwich at the first Cross-Chain Working Group meeting in San Francisco (photo via Keep)

Credit: Source link

Tags: Crypto Tech
Share76Tweet48
Previous Post

Ethereum Coders Approve 6 Changes for Upcoming Istanbul Hard Fork

Next Post

IBM Continues To Develop Blockchain Projects, Yet Major Challenges Remain For The Tech Giant

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

ygg sea surpasses 10,000 scholarships in just six months of launch
Alt Coin

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
5 projects enabling smart contract development on bitcoin
Alt Coin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building
Bitcoin

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications
Alt Coin

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
green gaming
Business

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
axie infinity: what are the minimum android phone requirements to play on mobile
Alt Coin

Axie Infinity: What Are the Minimum Android Phone Requirements to Play on Mobile

April 21, 2022
Load More
Next Post
IBM Continues Expansion Into Crypto Space With “Blockchain World Wire”

IBM Continues To Develop Blockchain Projects, Yet Major Challenges Remain For The Tech Giant

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$19,530.063.24%
  • ethereumEthereum(ETH)$1,066.545.51%
  • tetherTether(USDT)$1.00-0.50%
  • binancecoinBNB(BNB)$218.905.17%
  • rippleXRP(XRP)$0.3162411.88%
  • cardanoCardano(ADA)$0.4521523.25%
  • SolanaSolana(SOL)$32.935.74%
  • dogecoinDogecoin(DOGE)$0.0660444.66%
  • polkadotPolkadot(DOT)$6.821.93%
  • daiDai(DAI)$1.00-0.07%
  • tronTRON(TRX)$0.0655524.44%
  • Shiba InuShiba Inu(SHIB)$0.0000102.86%
  • leo-tokenLEO Token(LEO)$5.99-0.17%
  • matic-networkPolygon(MATIC)$0.4708278.46%
  • litecoinLitecoin(LTC)$51.281.69%
  • FTXFTX(FTT)$24.766.96%
  • OKBOKB(OKB)$12.254.42%
  • CronosCronos(CRO)$0.1139813.76%
  • chainlinkChainlink(LINK)$6.122.98%
  • stellarStellar(XLM)$0.1103205.43%
  • cosmosCosmos Hub(ATOM)$7.7410.80%
  • algorandAlgorand(ALGO)$0.3085457.56%
  • moneroMonero(XMR)$113.894.41%
  • ethereum-classicEthereum Classic(ETC)$14.693.28%
  • bitcoin-cashBitcoin Cash(BCH)$101.142.59%
  • vechainVeChain(VET)$0.0224774.79%
  • Internet ComputerInternet Computer(ICP)$5.263.45%
  • tezosTezos(XTZ)$1.371.30%
  • filecoinFilecoin(FIL)$5.384.86%
  • theta-tokenTheta Network(THETA)$1.173.72%
  • ElrondElrond(EGLD)$51.339.41%
  • bitcoin-cash-svBitcoin SV(BSV)$52.13-0.87%
  • eosEOS(EOS)$0.924.17%
  • paxos-standardPax Dollar(USDP)$1.000.12%
  • makerMaker(MKR)$903.316.37%
  • AaveAave(AAVE)$57.316.67%
  • huobi-tokenHuobi(HT)$4.820.52%
  • iotaIOTA(MIOTA)$0.2649554.79%
  • zcashZcash(ZEC)$53.933.52%
  • basic-attention-tokenBasic Attention(BAT)$0.40686113.70%
  • neoNEO(NEO)$8.232.70%
  • zilliqaZilliqa(ZIL)$0.0393548.26%
  • wavesWaves(WAVES)$5.4712.34%
  • havvenSynthetix Network(SNX)$2.224.60%
  • dashDash(DASH)$42.053.03%
  • PancakeSwapPancakeSwap(CAKE)$3.035.24%
  • KusamaKusama(KSM)$48.387.08%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • nemNEM(XEM)$0.0384735.84%
  • ethlendAave [OLD](LEND)$4.103.48%
  • CompoundCompound(COMP)$46.787.86%
  • qtumQtum(QTUM)$2.775.33%
  • bitcoin-goldBitcoin Gold(BTG)$15.282.91%
  • omisegoOMG Network(OMG)$1.804.40%
  • golemGolem(GLM)$0.2355267.12%
  • ontologyOntology(ONT)$0.23412710.25%
  • SushiSushi(SUSHI)$0.982.35%
  • umaUMA(UMA)$2.5912.00%
  • yearn-financeyearn.finance(YFI)$5,412.874.64%
  • digibyteDigiByte(DGB)$0.0091133.37%
  • UniswapUniswap(UNI)$2.4438.80%
Posting....