Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network

Must read

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network Samuel Wan · 1 hour ago · 2 min read

The new stablecoin — interBitcoin — is a wrapped product that will bring Bitcoin’s trust and security to more technologically innovative chains.

2 min read

Updated: August 15, 2022 at 2:41 pm

Interlay launches Bitcoin-backed stablecoin iBTC on Polkadot network

Cover art/illustration via CryptoSlate

Interlay has launched a wrapped Bitcoin asset called interBitcoin (iBTC) on the Polkadot chain. The product intends to widen BTC use “for DeFi, cross-chain transfers, NFTs, and more.”

iBTC is already Acala and Moonbeam compatible. But developers have put up $1 million of funding to extend the project to other chains. Plans are in place to launch on Ethereum, Cosmos, Solana, and Avalanche soon.

“iBTC is a Bitcoin-backed stablecoin, maintained by a decentralized network of collateralized Vaults and redeemable 1:1 for BTC.”

How does iBTC work?

Interlay’s mission is to realize “the true nature of BTC” by extending its use to any blockchain.

“interBTC realizes the true free nature of BTC and decentralized finance. A 1:1 Bitcoin-backed asset, fully collateralized, interoperable, and censorship-resistant.”

iBTC Bitcoin wrapping protocol
Source: pr.reblonde.com

Underpinning this is a network of decentralized vaults, which the company has stated is open for anyone to run and operate their own vault. Users lock their Bitcoin collateral with a vault, which then mints and issues iBTC to the user.

Interplay said iBTC is 1:1-backed and redeemable with Bitcoin. Moreover, the locked BTC is insured and reimbursed in the event of vault failure.

Interlay co-founder and CEO Dr. Alexei Zamyatin said iBTC brings Bitcoin’s trust and security to more technologically innovative chains. In effect, combining the best of both worlds while protecting Bitcoin’s trustless nature.

“Bitcoin is the driving force behind global crypto adoption, while Polkadot, Ethereum & co. is where technological innovation is happening.”

The project said iBTC is different from other cross-chain bridges in that users need only trust Bitcoin and Polkadot. What’s more, “there is no single point of failure,” and there is an automatic reimbursement process for lost BTC from the collateral insurance.

Cross-chain bridges under fire

Several high-profile hacks, including the Nomad hack, which was drained for $190 million, and the Ronin hack, where attackers netted $615 million, have put cross-chain bridges firmly in the spotlight.

A recent report from data analytics platform Chainalysis estimated that $2 billion was lost to cross-chain bridge hacks so far this year. What’s more, this type of cybercrime now accounts for 69% of all stolen crypto funds.

Chainalysis researchers said the issue has become so prevalent it now poses “a significant threat” to public trust in blockchain technology.

To combat the problem, Chainalysis called for more rigorous code audits and the use of established smart contract code to serve as a template for new projects.

More articles

Latest article

The ‘Brussels Effect’ wields real influence over US crypto regulation

The right to privacy is enshrined in many legal traditions around the world. In the United States, it’s protected by the Fourth Amendment; in...

Lack of ‘qualified people’ without more Web3 education, say academics

Australian blockchain academics and educators have called for more robust Web3 education in schools, preparing students for a world that will be dominated by...

Warner Music Group partners with OpenSea to create more Web3 opportunities for artists

The company stated that select artists can launch their NFT collections and limited-edition projects on their own dedicated drop pages. 1174 ...

Market manipulation claims will be hardest ‘nut to crack’ in Bitcoin ETF approval — WisdomTree

“We’re all kind of watching this and seeing what’s going to happen,” said WisdomTree's Will Peck on spot Bitcoin exchange-traded funds in the...

Judge orders SEC to turn Hinman documents over to Ripple Labs after months of dispute

U.S. District Court Judge Analisa Torres overruled the SEC’s second attempt to withhold the documents relating to former Division Director William Hinman, who...