Bitcoin needs Ethereum VM to reach its full potential – Web3 exec
Mainstream adoption of Bitcoin (BTC) won't happen until it bridges to the Ethereum Virtual Machine (EVM) — the first point of entry for many real-world assets running on the chain, argues a Web3 executive.
Speaking to Cointelegraph, Willem Schroe, founder of blockchain infrastructure firm Botanix Labs, said that bitcoin “needs to start playing in the EVM world” to build real-world use cases to increase adoption and service.
“Bitcoin is a very technologically secure and truly decentralized protocol. [and] EVM has proven itself as an application layer for the global financial system,” said Schroé.
Our Botanix protocol puts Ethereum as a Layer-2 solution on top of #Bitcoin.
We added Ethereum to the secure foundation of the Bitcoin network to leverage the security of the proof-of-work method.
Also enjoy Ethereum's ease of development.
— Botanix Labs (@BotanixLabs) September 25, 2023
While bitcoin is typically used as a peer-to-peer payment system or store of value, Schroe said the cryptocurrency's potential will not be fulfilled unless it can connect to the broader financial system, such as securities and commodity markets.
Connecting Bitcoin to Ethereum-based real-world assets, stablecoins, decentralized finance and immutable tokens through EVMs is the first step in that direction, Schroé argued.
“This is a great value and growth protection.”
Schroé's Botanix Labs aims to connect the Bitcoin and Ethereum ecosystems through a “Spiderchain” – a proof-of-stake layer 2 that implements EVM-to-EVM bridges to allow Bitcoin to connect to EVMs.
Bitcoin and Ethereum may seem like opposites, but they can coexist and support each other.
However, this presents some challenges.
In multi-chain ecosystems, cross-chain bridges may have security and centralization risks, which will be a potential barrier to cooperation.
— Botanix Labs (@BotanixLabs) October 2, 2023
Secured assets are protected by a decentralized multi-signature mechanism, and the design does not require a Bitcoin fork.
Schroé believes that current solutions that include Bitcoin and other EVM-compatible chains wrapped around Ethereum are problematic, and argue that they are vulnerable to censorship and regulatory oversight because they are managed by US-based BitGo.
A similar proposal to bring Ethereum functionality to Bitcoin has been proposed through “drivechains”, also known as Bitcoin Improvement Proposal-300, which Bitcoin developers are discussing again. If implemented, it will allow a “side chain” to be built on the network.
On October 9, Bitcoin developer Robin Linus released a white paper titled “BitVM: Compute Anything on Bitcoin,” which details how Ethereum-like optimistic bundle contracts can be implemented on the Bitcoin network.
RELATED: El Salvador Bitcoiners Teach 12-Year-Olds How to Send Sat
Unlike Spiderchain, BIP-300 requires a Bitcoin soft fork and will be activated by miners – as early as November 2021 with the Taproot soft fork that will pave the way for NFT-emulating Ordinals and BRC-20 tokens.
BIP's creator, Paul Sztrock, backers of BIP-300 believe it presents new privacy and scalability use cases for Bitcoin, among other benefits.
So far at @tabconf:
Many pro Bip300 — Popular uses are privacy, scaling and testing (get new OP codes now)* Most popular question: When is my debate with Peter Todd (Friday at 2pm)* Many complained about the out-of-start twitter talk. And nonsensical propaganda *…
— Paul Sztorc (@Truthcoin) September 7, 2023
However, not everyone likes the idea of expanding the Bitcoin ecosystem beyond its current use cases.
Corey Clipston, CEO of BTC-only exchange Swan Bitcoin, believes that solutions that bring other assets into Bitcoin will bring in an influx of fraudsters.
Bitcoin Standard author Sayfedian Amos opposes the idea of mining altcoins on top of Bitcoin, stating that “good money” is the only token.
People think tokens are a good idea because we live in a world of broken money. Good money is the only sign anyone needs. Bitcoin is going to destroy the world. https://t.co/q8Nhc7XcOX
— Saifedean Ammous (@saifedean) August 28, 2023
However, Schroé said he thinks bringing bitcoin and ethereum together could create a new set of applications with “decentralization and security as first principles.”
“EVM is the winning virtual machine, and Bitcoin is the best currency,” he said.
Magazine: Ethereum Is Eating The World – ‘All You Need Is Internet'
