How to Take DeFi for Bitcoin onboard Polkadot?

Firstly ,Bitcoin defi is very important to Polkadot.

Bitcoin is wildly-known undoubtedly. It is also the most frequently used cryptocurrency, accounting for 66% of the total crypto market. There are 30 million BTC users in the world with an equivalence of 200 billion worth of assets.

From the perspective of business, Bitcoin has the greatest business momentum with irreplaceable value in terms of market position, strong liquidity, business application and wide userbase, etc.

These are essential for DeFi in Polkadot.

Secondly , what is the status of bitcoin defi.

The intrinsic dilemma between Bitcoin’s huge value and technical limitations.

Bitcoin DeFi has promising potential, but prospects don’t equate to easy implementation due to the innate features of Bitcoin itself. That is it is no-turing complete.

How to unlock the infinite potential of Bitcoin?

the exploration and innovation of how to use inter-chain technology to bring Bitcoin onto other chains is all people are trying to do!There are wo ways actually ,one is centralized ,such as the exchanges like huobi .The other is decentralized.

Assets inter-chains involves two steps: the issuance of mapping assets onto other chains and the destruction of mapping assets when chain crossing is retracted.

Ensuring the two steps lock-issue and destroy-unlock proceed smoothly is the ultimate goal of all technical solutions.

When it comes to specific technical implementation, according to the degree of decentralization, generally there are three categories: hashlock, witness, light-client .side-chain relay.

Inter-chain Bitcoin products

There are some explores ,and most of them you are very familiar.

WBTC

WBTC is the first to issue mapping tokens onto Ethereum with adequate BTC endorsement.

It consists of custodians and exchangers with emphasis on credibility, due procedure, compliance and multi-party check and balance. But after all, it is the multi-party check and balance that improves decentralization rather than technical means.

tBTC

Similar to WBTC, tBTC is a redeemable product that also issues mapping tokens on Ethereum with adequate BTC as collateral. tBTC has made breakthroughs in anti-censorship, de-intermediation, de-trust, decentralization and security. But it draws on the ideas of WBTC and MakerDao, as a result, the whole system runs with excess collateral and extremely complex mechanism. Not to mention that with a very geeky open system, ease usage is simply not an option on the table.

imBTC

imBTC is a tokenization product launched by the Wallet imToken. imBTC is based on Ethereum and anchors BTC to issue equal amount of mapping tokens. Technically it’s edging towards extreme centralization because there is no big difference from a centralized exchange.

Third, what can ChainX bring to Bitcoin DeFi?

ChainX provides X-BTC

ChainX adopts Wasm technology to generate Bitcoin light nodes, supports POW verification of Bitcoin block headers and verification of complete transaction proof, making the chain-crossing of Bitcoin to ChainX fully decentralized and Bitcoin-style secure. XBTC assets are completely entrusted to and verified by Bitcoin light nodes to make the lock-issue process automatically secure.

ChainX has been a leading player in the field of inter-chain decentralized assets. Shortly after the launch, its inter-chain BTC assets’ worth exceeded 10 million US dollars, with the number quickly overtaking that of BTC in the lightning network. It is in fact the largest side chain and second-layer network of Bitcoin.

Meanwhile, due to the decentralized nature of ChainX’s inter-chain technology, OP_RETURN has seen wide support from many mainstream BTC wallets. OP_RETURN is the pre-condition for Bitcoin to embrace the era of decentralized chain crossing, which brings the market back to the focus on decentralization of inter-chain assets, and also lays a solid foundation for Bitcoin’s broader application in the future.

In short, with the current inter-chain technology and the intrinsic technical limitations on the Bitcoin chain, the solution is already the best in terms of decentralization and security.

ChainX provides a secure and expanding Bitcoin smart contract platform.

ChainX introduced its smart contract testnet in November 2019 and will be fully deployed on the mainnet when polkadot contract goes on line.

The ChainX smart platform prides itself on many strengths including high-latitude decentralization, low-cost usage, and the use of a more secure contract language, so it enjoys some advantages that other similar projects do not. Therefore, we would like to share our future vision. The birth of BTC smart contract platform will generate new value anchors and further expand the asset attributes of Bitcoin. Based on BTC smart contracts, BTC DeFi will be born, greatly prospering the DeFi ecosystem, and even bringing new changes to the DeFi protocol.

The future ChainX smart contract ecosystem will incorporate inter-chain transaction platform protocol, complete domain name system PNS, Bitcoin-based DeFi, and community referendum.

Various asset-related mini-games will be developed with BTC as bets through our smart contracts. We will also explore stablecoin contracts secured with BTC and private trading systems based on ZEC. Meanwhile the community will provide users with more risk-reduction tools, including futures, options, indices, funds, loans, insurance and other high-end financial services.

About ChainX

ChainX is the largest Layer-2 network of Bitcoin, based on Substrate, and will evolve into the Polkadot Secondary Relay Chain.

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ChainX

ChainX

ChainX is the largest Layer-2 network of Bitcoin, based on Substrate, and will evolve into the Polkadot Secondary Relay Chain.

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