BTC Proxy – A Decentralized Protocol for Bitcoin Transactions
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Introduction
Bitcoin (BTC) is popular for being the first cryptocurrency to be launched. It also doubles as the first blockchain network upon which cryptographic transactions are processed. Today, Bitcoin is leading the cryptocurrency market, by market capitalization.
However, Bitcoin appears to be one of the most “isolated blockchain networks,” owing to its non-interoperability with other blockchain networks. This is the primary reason for the launch of the Ethereum blockchain, which promises to offer better scalability and foster interoperable transactions across several blockchain networks.
Despite that, it is still important for Bitcoin-related transactions to be processed across other blockchain networks. This is the basis of the BTC Proxy project – to create an interconnected ecosystem through which Bitcoin-related transactions can be processed on the Ethereum (and other) blockchain networks.
BTC Proxy as a Multi-Institutional Protocol
BTC Proxy is a multi-institutional protocol, considering the major focus of decentralizing Bitcoin-related transactions on both the MRC20 and ERC20 crypto-token standards.
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The platform also seeks to make these transactions as fast, secure, and affordable as possible. This is possible via the delegation of the Proxy Relay feature.
Also, price differences in cryptocurrencies (especially Bitcoin) might just be tackled through the platform too. This issue is caused by the dependence on liquidity across many cryptocurrency exchanges. Price slippage is also another factor that causes these price differences.
In turn, the BTC Proxy platform looks to tackle the price differences by enabling the transfer of value across multiple platforms without the need for price slippage. Now, the users can be able to transact on both Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) without having to pay higher transaction/network fees or waiting for many minutes for the transaction to be confirmed.
Benefits of Using BTC Proxy
The BTC Proxy protocol has lots of attractive features for users. Some of the advantages are:
- Bitcoin Standardization
At the core of the protocol is the standardization of Bitcoin. This is part of the continued efforts to make Bitcoin-related transactions to be at par with the transactions from other blockchain networks.
To do this, the BTC Proxy protocol has included support for the MRC20 and ERC20 token standards. This way, Bitcoin transactions can be easily processed on blockchain networks that support those token standards. - BTC Proxy Tackles Insufficient Liquidity
The limited supply or absence of liquidity on a cryptocurrency trading platform can cause the users to wait for many minutes or hours (as the case might be) before their transactions can be processed.
On the contrary, the BTC Proxy protocol wants to simplify the transaction process by supplying liquidity to cryptocurrency trading platforms. That way, transaction rate/speed can pick.
It must be mentioned that this feature is currently implementable on the Ethereum and Polygon blockchain networks. Also, the liquidity is strictly for use on Decentralized Finance (DeFi)-related applications.
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Final Words
BTC Proxy has a strategy for improving the interoperability of Bitcoin with other cryptocurrencies. I am optimistic that the project has a market opportunity and if all things play out as expected, it can help bolster the Bitcoin blockchain’s interoperability with other cryptocurrency ecosystems.
Website: https://btcproxy.io/
Twitter : https://twitter.com/BTC_proxy
Telegram :
https://t.me/BTC_Proxy
Whitepaper : https://docs.btcpx.io/
Creator
0x username : barth5