Interlay’s Ambitious Bitcoin Bridge Project
Interlay is on the verge of completing an epic two-year mission: constructing a Bitcoin bridge to the Polkadot network. This venture is set to enhance the crypto landscape and interoperability across blockchains. The launch announcement will take place on Kusama, the canary network of Polkadot, making it a thrilling playground for testing new technologies.
Meet kBTC: The Wrapped Bitcoin
Now, let’s talk about kBTC, Interlay’s pride and joy that has taken flight on the Kintsugi parachain. kBTC is essentially a Bitcoin-backed digital asset, trading with a 1:1 ratio of BTC. What’s particularly enticing is that kBTC isn’t just hanging out on Kintsugi; it’s also strutting its stuff on Karura and Moonriver, making the rounds on multiple Polkadot parachains.
How kBTC Works
This innovative wrapped Bitcoin is maintained by a decentralized network of collateralized vaults, ensuring that it has the solid backing of Bitcoin without the clutches of a central authority. And guess what? KSM will be the first collateral to back up kBTC, marking the start of an exciting journey for decentralized finance (DeFi).
Interoperability Across Networks
Interlay is not stopping here. The project has grand plans to expand its tech across not just Polkadot, but also Cosmos and Ethereum. The goal? Elevate chain interoperability to new heights, making it easier for users and apps to interact seamlessly across platforms. Think of it as the international airport of blockchain – everyone’s welcome, and the more connections, the better!
The Motivation Behind Interlay
In an industry characterized by complexities and centralized control, Interlay’s CEO Alexei Zamyatin voiced some real concerns. With $14 billion worth of Bitcoin currently wrapped in Ethereum, users find themselves under the mercy of a few centralized custodians. As Zamyatin aptly pointed out, trust in traditional finance puts users’ assets at risk. Interlay offers a fresh breath of decentralized air in this realm.
Funding and Growth Milestones
How did Interlay manage to gain traction for this ambitious project? Starting with a generous grant from the Web3 Foundation in March 2020, things only went up from there. They managed to secure a whopping $3 million in a seed round in July 2021, followed later by a pre-Series A round of $6.5 million. These funds lay the groundwork for a project poised to reshape how Bitcoin can function in the DeFi arena.
A Bright Future Ahead
Fast forward to February, when Interlay snagged a coveted slot as one of Polkadot’s tenth parachain auction winners, drawing in over 2.7 million DOT tokens from nearly 20,000 participants. That’s no small feat and it sets the stage for Interlay on its journey to revolutionizing the cryptocurrency space.
