Blockchain Bites: Bitcoin on Ethereum

Oct 12, 2020 at 16:45 UTC.Since January, over $1.5 billion worth of bitcoin has been tokenized into ERC-20 tokens to use in the emerging decentralized finance ecosystem on Ethereum.

Through tokenized bitcoin projects, the powerful monetary properties of bitcoin can be leveraged in the ever-growing collection of Ethereum-based cryptocurrency applications.

As the amount of tokenized bitcoin grows, the importance of each project's security and reliability becomes even more important as does the continued development of Ethereum-based applications that pique the interest of tokenized bitcoin holders.

Tune into "The Fees Are Too Damn High: DeFi Pushes Ethereum to Its Limit," on Oct. 14 starting at 9:30 a.m. ET. Ethereum 101.To the surprise of many, bitcoin has been a breakout star in Ethereum's decentralized finance moment.

Why use tokenized BTC?What bitcoin on Ethereum does is simple: It provides liquidity for growing decentralized exchanges, such as Uniswap.

Tokenized bitcoin allows investors to bring large amounts of value over to the Ethereum network and its young DEX market in a few clicks.

A few features make this possible, such as the bitcoin depositors being able to choose who holds their bitcoin and a 150% security bond pledged by the custodians on the off-chance they run to the hills with the deposits.

Ethereum provides a clear path towards returns for tokenized bitcoin users, willing to take on extra risk.

He argued that because bitcoin token transactions on Ethereum deny miners fees they would otherwise receive on the bitcoin chain, bitcoin is becoming a "Second-class citizen" to ether.

Toward anti-fragilityThe inclusion of bitcoin in Ethereum smart contracts is inherently strengthening the DeFi system.