BITCOIN

Can this project remove wrapped tokens from the DFI market?


Wrapped tokens are widely accepted because they enable crypto traders to use their assets on multiple blockchain or distributed laser technology (DLT) platforms.

For example, wrapped Bitcoin (WBTC), a BTC token that has been “wrapped” in another token format, can be used to transact smart contracts in the Ethereum blockchain.

But it may now be possible to completely eliminate these so-called wrapped tokens from cryptocurrency trading. With this new approach, platform developers can significantly reduce the time, effort and cost associated with managing DFI-related transfers. By effectively removing the token wrapping requirement, the transaction can become much more efficient, as the token wrapping process is actually quite cumbersome, especially for novice traders.

Native cryptocurrency can be traded without thick tokens

The portal’s cross-chain decentralized exchange with nuclear switches is specifically designed to eliminate the need to wrap the topen. This is possible because the virtual currency of the incompatible blockchain or DLT network can be traded locally and without contact or involvement with risky third parties.

Nuclear exchange is basically an automatic exchange agreement that enables different parties to trade tokens on individual blockchain networks. Often referred to as nuclear cross-chain trading, this method effectively eliminates the need for centralized services when trading cryptocurrencies.

As mentioned by its developers, the portal is a self-hosted, Layer-2 digital wallet and cross-chain DEX deployed in the Bitcoin blockchain. It supports nuclear swaps between Bitcoin or BTC and other cryptocurrency tokens in a fast, secure and personal way.

In September 2021, the portal raised 8 8.5 million through a fundraiser so that the project team could implement a self-contained and unbearable DFI solution built on top of the Bitcoin network. Currently, the DFI ecosystem is affected by Ethereum, however, the Bitcoin blockchain is quite large and has a huge network impact that could benefit traders and investors in the DFI space.

It is noteworthy that the investment round of the portal included the participation of prominent investors such as ArringtonXRP Capital, Coinbase Ventures, MarketAcross, OKEx and Republic.co.

Michael Arrington, founder of ArringtonXRP, explains that decentralized cross-chain bridging is one of the most difficult tasks in the blockchain industry, especially as different DLT networks begin to take up considerable.

Arrington added that the portal’s bitcoin-native approach to multichain transfers could provide an alternative and effective bridging system for a growing number of potential on-chain merchants.

This should allow traders to conduct numerous crypto transactions that were not previously possible due to inconsistencies.

Brian Johnson of Republic Capital noted that inter-operability is an important feature for blockchain or DLT platforms, which will allow them to transform into a larger financial services industry. He noted that the Republic has made strategic investments in capital portals because they are interested in their approach to supporting nuclear exchanges. Utilizing the strong security of the Bitcoin network and using it as an anchor, the Republic Capital team believes that the portal is in a good position to be a useful bridge to the DFI ecosystem.

By developing these bridges, DFI transactions should be more widely accepted and could encourage even more institutional investors to come into contact with this new space.

Leveraging BTC Blockchain Trust Minimization Guarantees

The portal plans to provide adequate speed and adequate liquidity that is typically available on centralized trading platforms and wants to offer a “Bitcoin Trust Minimization Guarantee”.

From spot markets to alternatives, peer-to-peer nding and orrowing, all used without the need for on-chain, P2P contracts and third party custody, the portal seeks to help users exploit the potential of BTC to begin decentralizing money.

At the core of the portal is its Layer-2 / Layer-3 technology, called Fabric, an open-source toolkit for creating a censorship-resistant layer on top of Bitcoin’s base layer.

Fabric enables complete personal, off-chain smart contract execution for digital asset issues, peer-to-peer swaps, stacking, liquidity, derivatives and several other applications.

The portal’s chief executive, Eric Merindel, added that the portal provides fast, peer-to-peer, Layer-2 exchanges গতি speeds that are typically only available on centralized exchanges but are in an ideal position to provide a high level of privacy with co-portals. For the promise of “self-sovereignty.”

Eric further noted that most centralized exchanges are not really “decentralized” DEX, as they claim. These are actually only securely wrapped tokens and usually cessable ecosystems that “threaten Bitcoin’s promise of self-sovereignty.” Meanwhile, Fabric Tech “enables Layer 3 privacy on cross-chain transactions and eliminates the need for centralized custody,” Eric noted.

Ensuring that end users retain control over their assets

Martindale said they believe Bitcoin provides the financial infrastructure that will lead to the development of a free, unsupported Internet in the future, and although they are only starting with a P2P exchange, their mission is to “decentralize the platform for peer-to-peer human interaction.” Whether it’s communication, financial transactions or social media. “

The platform uses Bitcoin’s “hash time-lock agreement” so that users can maintain complete control over digital assets “preventing trade-offs, rival risks and loss of funds.”

It aims to “anonymize”, “self-interested” third parties to “reward mutual trust between interlocutors while guaranteeing security”.

The platform has received funding ahead of the portal’s upcoming public token sale, which is set to operate at Republic.co this month.

As mentioned by its development team, the portal is a DeFi service that is built on Bitcoin. Its goal is to defy the true “anonymous, zero-knowledge exchange through the first true cross-chain DEX that is not truly credible.”

It is designed to eliminate risky stacking with designed printed currencies (i.e. wBTC, wETH) or intermediaries. Through the portal, DFI became a solution that “anyone can maintain privacy in an open, transparent market with a security model as powerful as Bitcoin mining.”

As its makers have explained, the Fabric Protocol is the portal’s Layer-2 / Layer-3 technology that enables “censorship-resistant communication, media and one-click cross-chain exchange, all in Bitcoin.”

Image by Gerd Altmann from Pixabay



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