March 29, 2024

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

IOV Labs, the company behind Bitcoin's "federated" sidechain RSK, has created a new "bridge"ensuring the compatibility of the Bitcoin and Ethereum blockchains.

IOV Labs announced that the newly created "bridgeInteroperability" will give users the ability to transfer RSK and Ethereum-based crypto assets, including ETH and ERC-20 tokens, between blockchains. RSK — is a Turing-complete smart contract platform that is 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 cornerstonea cornerstone of the RSK concept from the very beginning,” — explained Adrian Eidelman, RSK strategist at IOV Labs. “We believe the opportunity to bring the benefits of Bitcoin to Ethereum users and bring these developer communities together — an important step for the blockchain industry as a whole.”

There are other protocols that provideinteroperability 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 — group focused on developing 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.”

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