Mainstream adoption of Bitcoin (BTC) is unlikely to occur until it integrates with the Ethereum Virtual Machine (EVM), which serves as the entry point for real-world assets moving on-chain. This perspective comes from Willem Schroé, the founder of Botanix Labs, a cross-chain infrastructure firm. Schroé believes that for Bitcoin to expand its adoption and utility, it must engage with the EVM and establish real-world use cases.
According to Schroé, Bitcoin is currently widely used as a peer-to-peer payment system or for storing value. However, its potential can only be fully realized if it can connect with the broader financial system, including security and commodity markets. By linking Bitcoin to Ethereum-based assets, stablecoins, decentralized finance, and non-fungible tokens through the EVM, Bitcoin can take a crucial step towards achieving this goal. Schroé emphasizes the enormous value and development opportunities that lie in this integration.
To facilitate this Bitcoin-Ethereum bridge, Botanix Labs has developed the Spiderchain, a proof-of-stake Layer-2 solution that incorporates the EVM. This infrastructure enables Bitcoin to interact with the EVM and establishes bridges between the Bitcoin and Ethereum ecosystems. The Spiderchain ensures the security of staked assets through a decentralized multisignature mechanism, eliminating the need for a Bitcoin fork.
Schroé criticizes existing solutions, such as wrapped Bitcoin on Ethereum, for their susceptibility to censorship and regulatory scrutiny due to their operation by the centralized United States-based company, BitGo. He believes that these solutions are problematic and do not provide optimal security and decentralization.
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A similar proposal called Bitcoin Improvement Proposal-300 (BIP-300) aims to bring Ethereum functionality to Bitcoin through drivechains, which would allow sidechains to be built on the Bitcoin network. This proposal is currently being discussed by Bitcoin developers. Robin Linus, a Bitcoin developer, has also released a white paper titled “BitVM: Compute Anything on Bitcoin,” outlining how Ethereum-like optimistic rollup smart contracts can be implemented on the Bitcoin network.
However, some individuals, like Cory Klippsten, the CEO of BTC-only exchange Swan Bitcoin, oppose expanding the Bitcoin ecosystem beyond its current use cases. Klippsten expresses concerns about potential fraudsters entering the ecosystem.
Saifedean Ammous, author of “The Bitcoin Standard,” also opposes the idea of issuing altcoins on Bitcoin, suggesting that Bitcoin itself is sufficient as “good money.” He argues that the concept of tokens stems from living in a world with broken money and that Bitcoin will ultimately reshape the financial landscape.
Despite these opposing viewpoints, Schroé believes that the integration of Bitcoin and Ethereum can generate a wide range of applications with decentralization and security as their fundamental principles. He sees the EVM as the winning virtual machine and Bitcoin as the leading cryptocurrency.
In conclusion, Bitcoin’s mainstream adoption hinges on its ability to connect with the Ethereum Virtual Machine (EVM). By bridging the two ecosystems, Bitcoin can access a plethora of real-world assets and use cases. Botanix Labs’ Spiderchain and the proposed Bitcoin Improvement Proposal-300 (BIP-300) offer different approaches to achieving this integration. While there are skeptics, Willem Schroé remains optimistic about the potential of combining Bitcoin and Ethereum to create innovative applications and reshape the financial system.
