Vitalik Buterin calls a bridge between Bitcoin and Ethereum

Ethereum co-founder Vitalik Buterin has called for the establishment of a decentralized exchange, which allows you to exchange between Bitcoin (BTC) and Ether (ETH).

Crypto-investors that want to convert your Bitcoin (BTC) for Ether (ETH), must currently rely on stock exchange platforms of third-party. The inventor of Ethereum, Vitalik Buterin, suggested the other day, a solution to facilitate the exchange of the two leading crypto-currencies. On Twitter, he said that more resources should be trusted for the establishment of a trust, server-less platform should be provided: “It is embarrassing that we can’t still move readily between the two largest crypto-Ecosystems to be trustworthy”.

Anyone who wants to convert their BTC into the ETH or Vice versa, currently has hardly a choice other than to rely on centralized crypto stock exchanges, which often raise fees. We should be trusted resources in the direction of a ordinary (trust, server-less, a maximum of Uniswap-like UX) ETH <-> BTC decentralized exchange set. It is embarrassing that we can’t always move values between the two largest crypto-Ecosystems to be trustworthy.

We should put resources toward a proper (trustless, serverless, maximally Uniswap-like UX) ETH <-> BTC decentralized exchange. It’s embarrassing that we still can’t easily move between the two largest crypto ecosystems trustlessly.

— vitalik.eth (@VitalikButerin) March 24, 2020

Buterin suggested that such a service could have a user experience that is the Uniswap dissimilar to that of a decentralized exchange (DEX), which makes it possible to replace ERC-20-Token of Ethereum with other users. In contrast to other exchanges Uniswap waived on a book order functionality and instead uses an automated Market-Making mechanism to ensure the liquidity. Buterin presents a similar decentralized exchange that would allow users to swap out with just a push of a button between BTC and ETH. To the question, why should Bitcoin against Ether can exchange, he tweeted: “The ability to use applications that are based on Ether, including MakerDao, http://tornado.cash the Smart Contract wallet, Prediction markets, status of…?”.

In a later Tweet Buterin said that he does not focus only on Connections between the Ethereum and Bitcoin Blockchain to produce. The programmer wrote that DEX bridges should also be used with other crypto-Ecosystems made. Buterin told that he had already held talks with the CEO of the Electric Coin Company, Zooko Wilcox-O’hearn, the driving force behind the privacy-focused crypto-currency, Zcash,. I think we can both work harder at it, the talks in practice. I would like to see more,“ adds Buterin. Wilcox-O’hearn has geweetet this message again later, which clearly confirmed that these talks have actually taken place.

Meanwhile, other developers have responded to the suggestion of Buterin. The Team of Komodo pointed out, for example, on the AtomicDEX, a DEX with Atomic Swaps of the Komodo developers say that you can fulfill the task, and Buterin urged.

Intro w video here: https://t.co/WG8PqTnn1c
Technical docs here: https://t.co/2DriF0OAlU
A basic desktop tui: https://t.co/3xQ5Q1MoID
The full desktop version is in development here: https://t.co/ef8qemm4Ip

— Mr. Komodo World (@MrKomodoWorld) March 25, 2020

Challenges for decentralized exchanges

It is conceivable that there could be a healthy demand for a decentralized bridge between Bitcoin and Ethereum, the two biggest cryptocurrencies in terms of market capitalisation. It would not, however, without its challenges. In the past, many decentralized exchanges have been hampered by a lack of liquidity, which makes it difficult for users to buy crypto-currencies on demand, and to sell. A poor user experience was also a Problem for many of these platforms, something that hopes to fix Buterin, the straightforward Design of Uniswap clearly.

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