Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
The RIF BTC-ETH bridge was developed by the RSK team and it serves as an interoperability bridge that locks the original token such as DAI on the Ethereum blockchain while minting an ERC777 ‘side token’ that can move freely on the RSK network.
The RSK Infrastructure Framework (RIF) development team has launched the DAI stablecoin coin through the BTC-ETH bridge dubbed the RSK-Ethereum token bridge. According to a press release issued by the RSK Network, one of the most secure smart contract platforms in the world, the RIF BTC–ETH bridge will help bring more Decentralized Finance (DeFi) products to the entirety of the Bitcoin (BTC) community.
RSK’s platform and infrastructures which are partly designed to leverage Bitcoin’s unparalleled hash power via merge-mining while extending its capabilities have necessitated the move to expand its offering with the MakerDao-backed DAI tokens.
As the company noted in the official release, the move to bring ‘the tools and assets that power decentralized finance to a Bitcoin environment, MakerDAO and RSK, together with the RIF token community, can fuel the growing demand for DeFi assets and applications without being hampered by Ethereum’s high fees. DAI on RSK will bring the crypto-collateralized stablecoin to a scalable smart contract network while maintaining a connection with Ethereum and its valuable community of users and developers’.
The integration is like a win-win situation for both Bitcoin (BTC) and Ethereum (ETH) lovers, a bridge most ambitious blockchain startups have been trying to perfect as the DeFi craze surges on.
“RIF integrating DAI creates a new world of opportunity for the Bitcoin community to participate in DeFi,” said Rune Christensen, Co-founder of MakerDAO and CEO of the Maker Foundation.
While the claim by Rune holds true, it is true that with the ethereum backed DeFi finding its way into the bitcoin network, the entire concept of decentralized finance will be more achievable. Diego Gutierrez Zaldivar, IOVlabs CEO, and co-founder, said:
“The DAI integration is another key step towards Bitcoin DeFi’s adoption. We are confident the growth of the Bitcoin ecosystem and its DeFi opportunities has only just begun, with much more to come.”
Fundamentals of the RIF BTC-ETH Bridge
The RIF BTC-ETH bridge was developed by the RSK team and it serves as an interoperability bridge that locks the original token such as DAI on the Ethereum blockchain while minting an ERC777 ‘side token’ that can move freely on the RSK network. An outright integration of any DeFi backed token such as the DAI will enable users to be able to send microtransactions and interact with smart contracts for services such notable decentralized finance services such as staking and lending.
While RSK noted that other BTC-bridging DApps have already integrated the DAI stablecoin, it is set to offer such scalability that will give it the necessary competitive edge. The integration of DAI thus further proves that the interoperability capabilities of blockchain technology can be harnessed to serve all cryptocurrency and blockchain enthusiasts around the world.