According to a recent report, the first trust-less swap between
the Bitcoin blockchain and Stacks protocol has been executed. The
co-founder of the Stacks protocol, Muneeb Ali tweeted about the native
bitcoin swap and said the progress is a big deal.
Trust-less Native Bitcoin Swap Executed With an NFT Called ‘Boombox’
On July 23, a trust-less swap using the Stacks protocol and the Bitcoin (BTC) blockchain was settled onchain. The swap dubbed the “Catamaran Swap between BTC and STX” was discussed on the Reddit forum r/stacks.
“The first trustless swap between [the] Bitcoin [blockchain] and
Stacks chain is happening,” a user wrote on the forum. “It is similar to
a submarine swap. However, I would call it catamaran swap because we
have two chains on top of the water,” the individual added. Further into
the Reddit thread, the individual notes that the swap was “successfully
completed.”
People can see the swap conditions as defined on the Stacks chain and then the bitcoin transfer and the verification.
According to the description, the asset swapped was a non-fungible
token (NFT) asset called “Boombox (b-12).” The creator of the Reddit
post wrote that the “swap demonstrates that you can trigger trustless
actions like asset transfers by sending bitcoins from one address to
another.”
The individual added that the feature gives Bitcoin a “new dimension”
because “transfers can be inspected and validated by smart contracts on
the Stacks blockchain.”
The Stacks project is considered a Layer-1 blockchain that leverages the Bitcoin (BTC)
blockchain as the base layer. Validation is provided by
proof-of-transfer between both networks and similar to Ethereum’s
Solidity programming language, Stacks has a programming language called
Clarity. The co-founder of Stacks, Muneeb Ali, tweeted about the milestone on Monday, as he wholeheartedly believes it’s a watershed moment.
“Users can do trustless BTC
swaps to stablecoins, derivatives, perpetuals, and other crypto
assets,” Ali stressed in his Tweet. “All by pure bitcoin transactions on
the main BTC
chain. Users can purchase any digital assets (like NFTs and
decentralized domains).” Ali further remarked that it was a big deal and
stated: “Bitcoin has established itself as digital gold, but you can’t
use BTC to trade without going through: (a) centralized exchanges or (b) alt blockchains w/ wrapped [bitcoin]. Not anymore.”
Muneeb Ali Says Trust-less Swaps Are a ‘Big Deal,’ Automated Market Maker ALEX Revealed
The computer scientist and Stacks co-founder said that wrapped
bitcoin is “not bitcoin” and said that many bitcoiners don’t trust the
network models that house these crypto assets. As far as centralized
exchange (cex) platforms, Ali mentions that there’s counterparty risk
involved and users need to pass KYC requirements. “All that changes
now,” Ali said.
“Stacks is a unique L1 blockchain that enables cross-chain
transactions with Bitcoin: smart contracts that work with pure bitcoin
transactions. Using Stacks, developers have built trustless swaps with
native BTC,” the Stacks executive detailed.
Ali also said that usd coin (USDC) will soon be supported and that “trust-less BTC/USDC
swaps can be possible.” He added that Ethereum features are possible
directly on Bitcoin, and users can create “Uniswap-like AMMs (Automated
Market Makers) built around native BTC swaps, [and] do pure BTC transactions to interact.” Moreover, Ali highlighted that these features will come with the robust security of the BTC blockchain. The Stacks executive’s tweetstorm continued:
Bitcoin is sovereign money. An entire open financial world will be created around Bitcoin. Native BTC swaps to new assets are a foundational building block of Bitcoin defi. Bitcoin eating the banks.
Of course, a few people mentioned
to Ali that the project Thorchain has been doing trust-less swaps for
quite some time now. In fact, the popular peer-to-peer trading platform
Shapeshift leverages Thorchain’s tech to complete native swaps. Although, someone was quick to point out that Thorchain has been having some issues with hacks in recent times.
The next day, the Stacks executive mentioned the Automated Market Maker (AMM) project being built on the protocol called ALEX. The ALEX project describes how the protocol works in a blog post published on Tuesday.
According to the website and the recent blog post, the AMM allows
users to lend, earn and borrow bitcoin with minimized risk and maximized
returns. In a tweet, the ALEX Twitter account says
that the AMM “helps crypto users preserve their capital and maximize
the value of their assets – we do this by offering fixed-rate
lending/borrowing and superior LTV with higher security and lower fees.”
Stacks Has Stiff Competition
The Stacks team still has some stiff competition with projects like Thorchain, Badger DAO, and RSK. Many of which already have fully operational defi applications that allow people to chase liquidity pools
and other types of defi protocols. Alongside this, despite Ali’s claim
that people don’t trust the network models with concepts like wrapped
bitcoins, the Ethereum (ETH) and Binance Smart Chain (BSC) has an enormous lead over projects like Stacks, Badger, RSK, Liquid, and Thorchain combined.
During the last two years, ETH
and BSC have seen a plethora of projects that allow cross-chain swaps,
synthetic and wrapped bitcoins, stablecoins, AMMs, lending pools, and
decentralized exchange (dex) platforms. Just on the Ethereum chain
alone, there’s WBTC, HBTC, RENBTC, SBTC, PBTC, TBTC, and IMBTC which
adds up to a whopping 250,729 bitcoin housed on the ETH network.
source link : https://news.bitcoin.com/stacks-amm-revealed-native-bitcoin-swaps-executed-with-proof-of-transfer-protocol/
