June 11, 2023

RSK launches a tool for the interaction of the Bitcoin and Ethereum blockchains

IOV Labs, behind the development of the “federated” Bitcoin sidechain RSK, has created a new “bridge”, ensuring the compatibility of the Bitcoin and Ethereum blockchains.

IOV Labs Announces New Bridgecompatibility ”will give users the opportunity to transfer crypto assets based on RSK and Ethereum between blockchains, including ETH and ERC-20 tokens. RSK is a Turing complete smart contract platform based on the Bitcoin blockchain.

When a user transfers crypto assets,The bridge’s smart contract blocks the originals and issues the appropriate number of new tokens in another chain. Using this system, Ethereum-based tokens can be converted to RRC20 tokens in RSK, which can then be converted to Ethereum ERC777 tokens.

Interaction protocols simplify project workwith different blockchains. Decentralized applications (dapps) can serve a wider user base that would otherwise remain isolated in closed networks, and projects can use for their purposes the specific characteristics of various blockchains.

“Interoperability was the cornerstonethe foundation of the RSK concept from the beginning, ”explained Adrian Eidelman, RSK strategist at IOV Labs. “We believe that being able to offer the benefits of Bitcoin to Ethereum users and bring these developer communities together is an important step for the blockchain industry as a whole.”

There are other protocols that provideinteraction between Bitcoin and Ethereum: Wanchain launched a similar “bridge” between the two networks in 2018. In addition, Wanchain became one of the founders of the Blockchain Interoperability Alliance, a group focused on the development of interoperability between different networks.

Edelman said that Wanchain focuses on connecting blockchains, as an “intermediary”, RSK actually unites networks, allowing both ecosystems to use each other's strengths.

The developers of the Money on Chain protocol,supporting the development of stablecoin, which uses BTC as collateral for new tokens, they will use the new RSK “bridge” to transfer their stablecoins to Ethereum. Project co-founder Max Carjuzaa said the new tool will combine security and “global Bitcoin recognition with the dynamic DeFi ecosystem being developed in Ethereum.”