Tokenized Bitcoin Promises To Take DeFi To The Next Level
It would seem that Bitcoin is completely digitized – where else? There is a way to go further: the developers have launched a tokenized form of an asset. Why was tBTC created and why do skeptics call it a dummy?
Tokenized Bitcoin – why?
It was hard to believe that Bitcoin could bypass DeFi and not join the largest project in the history of the crypto industry. And so it happened: the developers presented a tokenized Bitcoin that can function within the DeFi ecosystem. Crypto enthusiasts have taken this news ambiguously and are watching with caution DeFi’s collaboration with a new form of Bitcoin.
Why was the decision made to tokenized Bitcoin, since the flagship cryptocurrency is still a digital asset? The answer lies on the surface: the most DeFi applications run on the Ethereum blockchain, which in turn competes with Bitcoin. As the experience of recent months shows, DeFi acts as an effective trigger to popularize tokens and, which is important, stimulates their price growth.
Tokenized Bitcoin was created by developers at Keep Network. It is a digital certificate of the Bitcoin stock, which opens access to work with DeFi applications. tBTC is endowed with the same capabilities as other DeFi tokens: the asset can be sold, transferred, or pledged. Many investors breathed a sigh of relief as they can now convert Bitcoin to tBTC and join DeFi apps and services.
How did crypto messaging react to the launch of tBTC?
Attracting flagship crypto that covers 60% of the cryptocurrency market could open sky-high prospects for DeFi projects. In particular, Matt Luongo, head of tBTC.network, is sincerely convinced of this.
The launch of tokenized Bitcoin divided the crypto community into two camps: some firmly believe in the success of the Bitcoin collaboration with DeFi, others call the tokenized form of an asset a dummy and fake. The development of tBTC coincided with a fall in the hype and a collapse in the prices of tokens that operate inside DeFi. Is this a coincidence?
In turn, adherents of tBTC do not give up under the onslaught of criticism and appeal to the advantages that the asset has. In particular, tokenized Bitcoin is based on open source code, which provides transaction transparency. There is also another good news for users: converting BTC to tBTC takes place in a 1: 1 ratio.
Despite skepticism, more than 70,000 tBTC have already been blocked in DeFi protocols. It demonstrates the willingness of DeFi participants to use tokenized Bitcoin on a par with Ethereum.