In a recent interview with Cointelegraph, Willem Schroé, the founder of Botanix Labs, highlighted the importance of bridging Bitcoin to the Ethereum Virtual Machine (EVM) in order to unlock its full potential. Schroé argues that Bitcoin, being the most technologically secure and decentralized protocol, needs to participate in the EVM world to expand its real-world use cases and increase adoption. By connecting Bitcoin to Ethereum-based assets, decentralized finance, stablecoins, and nonfungible tokens through the EVM, Schroé believes a significant amount of value and development is waiting to happen. Botanix Labs aims to facilitate this connection through its Spiderchain platform, which implements EVM to EVM bridges. This article explores the potential impact and challenges of integrating Bitcoin with the Ethereum ecosystem, as well as alternative proposals such as BIP-300 and drivechains.
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Bitcoin’s Full Potential Relies on Ethereum VM, Says Web3 Executive
Bitcoin needs Ethereum VM to reach its full potential
Botanix Labs founder, Willem Schroé, believes that Bitcoin’s full potential can only be realized if it connects to the Ethereum Virtual Machine (EVM). According to Schroé, Bitcoin needs to start playing in the EVM world in order to leverage real-world assets and build use cases that increase its adoption and utility. While Bitcoin is known for its technological security and decentralized nature, it still lacks connectivity to the broader financial system. Schroé argues that connecting Bitcoin to Ethereum-based assets, stablecoins, decentralized finance, and non-fungible tokens through the EVM is crucial for its growth and expansion.
Bitcoin is the most technologically secure and truly decentralized protocol
Schroé asserts that Bitcoin is the most technologically secure and truly decentralized protocol in the cryptocurrency ecosystem. Its robustness and resilience make it ideal for storing value and facilitating peer-to-peer transactions. However, Bitcoin’s potential is limited without integration with the EVM. The Ethereum Virtual Machine has proven to be the application layer for the global financial system, enabling various real-world assets to move on-chain. By connecting Bitcoin to the EVM, its security and decentralization can be leveraged in a broader range of financial applications, bridging the gap between the two ecosystems.
Connecting Bitcoin to Ethereum-based real-world assets
Schroé emphasizes the value of connecting Bitcoin to Ethereum-based real-world assets. By using the EVM, Bitcoin can tap into the vast potential of security and commodity markets, enabling the transfer and ownership of real-world assets in a decentralized manner. This interoperability would open up new opportunities for Bitcoin as a medium of exchange and store of value, expanding its use beyond peer-to-peer payments. Schroé believes that there is a significant amount of value and development waiting to happen once Bitcoin is connected to the EVM.
Botanix Labs aims to connect the Bitcoin and Ethereum ecosystems
Botanix Labs, the brainchild of Willem Schroé, aims to connect the Bitcoin and Ethereum ecosystems through its Spiderchain solution. Spiderchain is a proof-of-stake layer 2 protocol that implements EVM to EVM bridges, allowing Bitcoin to interact with the EVM. This cross-chain infrastructure enables the seamless transfer of assets between the two networks, leveraging the security of Bitcoin’s proof-of-work mechanism and the developmental ease of Ethereum. By bridging these ecosystems, Botanix Labs intends to unlock new possibilities and applications that combine the security of Bitcoin and the functionality of the EVM.
Current solutions involving wrapped Bitcoin on Ethereum and other EVM-compatible chains
Although there are existing solutions that involve wrapping Bitcoin on Ethereum and other EVM-compatible chains, Schroé argues that these approaches have limitations. Current solutions, such as Wrapped Bitcoin (WBTC), are operated by centralized entities like BitGo and are susceptible to censorship and regulatory scrutiny. These solutions lack the full decentralization and security offered by Bitcoin and may hinder the growth and adoption of Bitcoin as a cross-chain asset. Schroé believes that a direct integration between Bitcoin and the EVM is necessary for the full potential of both ecosystems to be realized.
Similar proposal to bring Ethereum functionality to Bitcoin through ‘drivechains’
In addition to connecting Bitcoin to the EVM, there is a proposal to bring Ethereum functionality to Bitcoin through “drivechains.” The Bitcoin Improvement Proposal-300 (BIP-300) suggests the implementation of sidechains on the Bitcoin network. These sidechains would enable the creation of Ethereum-like smart contracts and expand Bitcoin’s capabilities. The proposal, similar to the Spiderchain concept, aims to combine the best features of Bitcoin and Ethereum, creating synergies between the two networks. The drivechain approach is currently being discussed by Bitcoin developers as a potential solution to enhance Bitcoin’s functionality.
BitVM: Compute Anything on Bitcoin white paper by Robin Linus
Bitcoin developer Robin Linus recently released a white paper titled “BitVM: Compute Anything on Bitcoin.” The white paper outlines how optimistic rollup smart contracts, similar to those on Ethereum, could be implemented on the Bitcoin network. This proposal further highlights the potential for Bitcoin’s expansion and integration with the EVM. The introduction of Ethereum-like functionality on the Bitcoin network would enable the development of a broader range of applications and use cases. Linus’ white paper contributes to the ongoing exploration of bringing together the capabilities of Bitcoin and Ethereum.
Not everyone likes the idea of expanding Bitcoin’s ecosystem
While there is enthusiasm for expanding Bitcoin’s ecosystem to include connectivity with the EVM, not everyone supports this idea. Some individuals, such as Cory Klippsten, the CEO of BTC-only exchange Swan Bitcoin, express concerns about potential scams and an influx of altcoins if Bitcoin’s ecosystem expands beyond its current use cases. Others, like Saifedean Ammous, the author of The Bitcoin Standard, argue that Bitcoin alone is sufficient as “good money” and see no need for additional tokens. Despite these reservations, proponents of integrating Bitcoin with the EVM believe that such integration could unleash new applications with decentralization and security as core principles.
Bringing together Bitcoin and Ethereum could produce a new array of applications
Willem Schroé believes that bringing together Bitcoin and Ethereum through the Ethereum Virtual Machine has the potential to create a new array of applications. By combining the security and decentralization of Bitcoin with the functionality and versatility of the EVM, developers and users can unlock innovative financial solutions. This integration could lead to the emergence of decentralized finance (DeFi) applications that leverage Bitcoin’s sound money properties and the programmability of smart contracts on the EVM. The fusion of these two ecosystems holds promise for enhancing the utility and adoption of both Bitcoin and Ethereum.
EVM is the winning virtual machine, and Bitcoin is the best money
In the eyes of Willem Schroé, the Ethereum Virtual Machine (EVM) is the winning virtual machine in the cryptocurrency space. It has established itself as the application layer for the global financial system, powering various decentralized applications and financial instruments. On the other hand, Bitcoin is considered the best money, given its unparalleled security and decentralized nature. By uniting the EVM and Bitcoin, the strengths of both technologies can be leveraged to create a new paradigm in the cryptocurrency ecosystem. This combination of the EVM and Bitcoin has the potential to reshape finance and enable new possibilities for users and developers alike.