Mass adoption of Bitcoin will not happen until the cryptocurrency blockchain is connected to the Ethereum Virtual Machine (EVM). This opinion was expressed by the head of Botanix Labs, Willem Schroe, in an interview with Cointelegraph.
The integration will create an entry point for the first cryptocurrency network for a variety of real assets moving on-chain. EVM will also provide new use cases for digital gold to increase its adoption and usefulness, says the founder of the Web3 firm.
“Bitcoin is the most technologically secure and truly decentralized protocol available. [а] EVM has established itself as the application layer of the global financial system,” said Shroe.
While the first cryptocurrency is typically used as a peer-to-peer payment system or as a store of value, its potential won’t be realized without connecting to a broader financial ecosystem like securities or commodities markets, he said.
Connecting Bitcoin with real assets based on Ethereum, stablecoins, NFTs and DeFi through EVM will be the first step in this direction, the expert is sure.
“This is a huge amount of value and development waiting to happen,” he said.
Previously, Botanix Labs presented the concept of an EVM-compatible second-level network Spiderchain based on Bitcoin. The decision was brought to the attention of the community by the co-founder and CTO of Casa, Jameson Lopp.
Spiderchain operates as a sidechain, using the Proof-of-Stake (PoS) consensus algorithm, staking and smart contracts. The protocol consists of several layers, with the underlying blockchain as the settlement layer.
Shroe believes that existing Bitcoin EVM solutions, including wrapped versions of the coin, are problematic, subject to censorship and control by centralized organizations and authorities.
The introduction of Ethereum functionality into the blockchain of the first cryptocurrency is also expected to be implemented using so-called “drive chains”. The concept is implemented by what is being discussed in the community BIP-300.
Unlike Spiderchain, implementing this improvement will require a soft fork of the network.
On October 9, ZeroSync co-founder Robin Linus published a paper titled “BitVM: Compute Anything on Bitcoin.” In it, the developer presented a mechanism for expanding the capabilities of smart contracts in the network, also without the need to update it.
BIP-300 creator Paul Storck says the proposal will open up new use cases for digital gold in the areas of privacy and scale, among other benefits.
So far at @tabconf:
* Many pro Bip300 — popular usecases are Privacy, Scaling, and experimentation (get new OP codes now)
* Very popular question is: when is my debate with Peter Todd (Friday at 2 PM)
* Many complained about off-base Twitter dialog and nonsense propaganda
*…— Paul Sztorc (@Truthcoin) September 7, 2023
Swan platform CEO Corey Klippsten believesthat solutions like “drive chains”, which outperform other assets on the blockchain, lead to an influx of scammers. This attracts the attention of regulators, the expert added.
The author of the book “The Bitcoin Standard,” Seyfedin Ammous, also spoke out against the idea of issuing altcoins on the digital gold blockchain. He believes that “good money” is the only token needed.
People only think tokens are a good idea because we live in a world of broken money. A good money is the only token anyone ever needs. Bitcoin is going to detokenize the world. https://t.co/q8Nhc7XcOX
— Saifedean Ammous (@saifedean) August 28, 2023
However, Scheuer is confident that connecting the networks of the first cryptocurrency and ether can create a new set of applications “with decentralization and security as the main principles.”
“EVM is a winning virtual machine, and Bitcoin is the best money,” he concluded.
Let us remind you that Fidelity researchers came to the conclusion that digital gold is the safest, decentralized and scarce cryptocurrency in the world.
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