Ava Labs has launched a new bridge solution that allows users to directly transfer funds between the Bitcoin network and Avalanche, a high-performance Layer 1 block chain that provides compatibility with the Ethereum Virtual Machine (EVM).
On Wednesday, Ava Labs released the Avalanche-Bitcoin Bridge as part of its new web wallet, a browser-based called Core. The bridge will tokenize the main crypto asset as an Avalanche-based token called BTC.bthat will allow it to be used in DeFi Avax protocols, including Platypus and TraderJoe.
The bridge process works by blocking the number of bitcoins and issuing an equivalent number of tokens on Avalanche, a process called a wrapper. The team argues that setting up a wrap on the bridge is not related to storage, unlike other popular solutions for Ethereum-based tokenized bitcoins, including wrapped bitcoins (WBTC).
For every WBTC that exists in Ethereum, there is bitcoin stored in a centrally controlled smart contract, which some critics say puts users at counterparty risk and trust issues. Ava Labs claims that their bridge has no such problems.
“We are still converting BTC to BTC.b. The difference is that we start with native BTC (instead of WBTC in Ethereum) and then convert the asset from Avalanche to BTC.b,” an Ava Labs spokesperson said.
The bridge browser extension page states that the bridge uses Intel SGX (Software Guard Extensions), the same technology used in the Avalanche bridge connecting to Ethereum. In the future, this bridge will also give Bitcoin users access to Avax subnets such as DeFi Kingdoms and Swimmer, as well as other blockchain networks such as Ethereum.
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