BTC Proxy: A Multi-institutional Protocol for the decentralized tokenization of Bitcoin.
Considering how valuable and solid the Bitcoin Blockchain is, it is obvious that many crypto enthusiasts wish and want to associate with them one way or the other either directly or in-directly (by Proxy). Of course, being the top and leading coin (Currency) in the crypto space gives them so much impact in the market (price) as they serve as the major determinant or support to the prices of other token and coin out there. This over the year has increases its attraction and willingness of others to hold or interact with it either directly or in-directly ‘proxy’ as said earlier.
Bitcoin being centralized and the wiliness of many to interact with the ecosystem had brings about lot of bridges to a decentralized protocols or ecosystem. Most of this has one issue or the other, stated below are some of the challenges encounter in the Ethereum ecosystem.
- The centralized exchanges and systems exponentially increase counterparty risk of theft or loss and an inefficient transfer of value resulting in price slippage.
- Also there are excess and higher standard demand of custody for Bitcoin from institution entering the market.
- The smart contracts dominate Decentralized Exchanges (DEXs), digital swaps, derivatives, and micro banking applications, while Bitcoin makes up 40–60% of the crypto market.
Considering these and many other others challenges there is need for a seamlessly scalable layer-2 protocol to decentralize the tokenization of Bitcoin which is exactly what the BTCpx is here to offer, and of course it is really standing them out.
Btcpx is a Bitcoin bridge leveraging insured multisig third-party custodians to facilitate the participation of Bitcoin (BTC) in defi. BTC Proxy is a multi-institutional protocol for the decentralized tokenization of Bitcoin on ERC20 and MRC20 formats utilizing the Proxy Relay. This gives Bitcoin holders a decentralized bridge to stake their Bitcoin into custody and transfer that value into an onto Ethereum or Polygon chains without the need for centralized exchanges and systems that exponentially increase the counterparty risk of theft or loss. BTC Proxy also allows for the transfer of value without price slippage and is independent of liquidity which is a factor that affects exchange prices on Centralized exchanges and decentralized exchanges.
Through this permissionless interface in 30th of July 2021 the BTC Proxy provides a more scalable layer-2 protocol to decentralize the tokenization of Bitcoin. With this innovation and great ideal that was brought into reality now individuals and institutions can securely earn sustainable yields and rewards which is far better than any other product that are available for Bitcoin marketplace.
Listed below are list of advantages of using BTC Proxy:
· Gives Financial Freedom: It create BTC liquidity onto the Polygon, Ethereum ecosystem and DeFi applications which gives lot of edges over others.
· Provide a Decentralized Bridge — The BTC Proxy gives all holders Bitcoin a decentralized bridge to transfer their Bitcoin value into an MRC20/ERC20 token without the need for centralized exchanges and systems, this safe them from lot of stress.
· Provide a Secured Lubrication — Provision of lubrication for the flow of blockchain securely and efficiently with any issues whatsoever.
· Bring about so much Flexibility — You can be sure of having so much flexibility with the BTC Proxy which makes it so easy to redeem your Bitcoin anytime
· Standardizing Bitcoin — BTC Proxy standardizes Bitcoin to both MRC20 and ERC20 formats which allow Bitcoin holders to participate in Decentralized Finance applications that are otherwise not compatible.
All these mentions are the advantages the BTXC Proxy gives through their Proxy Relay,
The Use Cases of the BTC proxy
· Ethereum ecosystem and Defi Application: The BTC Proxy brings BTC liquidity onto the Ethereum ecosystem and #DeFi applications, considering that most of the development of DApps and Decentralized Finance (DeFi) is in the Ethereum ecosystem, this simple state the fact that Bitcoin “dominates” the majority of the crypto-currency market capitalization and this sector is burgeoning with fintech innovation with the likes of Decentralized Exchanges (DEXs), digital swaps, derivatives, and micro banking applications, all using smart contracts.
· Crypto-currency (Tokenized Assets): For utilization on any particular ecosystem, tokenized assets provide an opportunity to transfer asset’s value (USD, for example). Because the token value is backed by fiat or a digital asset, they offer a safe way for traders to keep their value in a crypto-currency without worrying about price fluctuations.
· Interoperability between crypto-currencies: The huge choice of crypto-currencies available today are prove and evidence to how much expansion and growth that have taken place within this space. Some of this are offer in transactional throughput, privacy, cheap transaction fees, smart contract ability, the decentralization of nodes/miners, and more. This framework makes it easy to represent any other crypto-currency and enhance it with all the blockchain’s capabilities.
· Liquidity on Decentralized Exchange and DApps: The majority of ERC20 tokens trading in centralized exchanges today is done with a BTC pair rather than with ETH. In contrast, most decentralized exchanges offer only ETH/Token and not BTC/Token trades. BTC Proxy tokens bridge this technological gap and provide more liquidity on decentralized exchanges and pools.
You can check their whitepaper for futher information: https://docs.btcproxy.io/
Or visit their website: https://btcproxy.io/
This is a sponsored article written for a bounty reward
Bounty0x username: emmaoyes
