Nomic, a Layer-1 blockchain, has made its decentralized Bitcoin ownership system work with Ethereum. This means that users can easily move Bitcoin to Ethereum. This new feature, which went live on a testnet on September 12, gets rid of the need for third-party controlled managers. Instead, users can use Nomic’s native nBTC token to exchange Bitcoin (BTC) on Ethereum.
Wrapped Bitcoin (WBTC), which is currently the best way to use Bitcoin on Ethereum, is immediately challenged by the new answer. There are worries about confidence and control because Bitcoin is kept in reserve by a central custodian to back WBTC. nBTC is a safe and useful option to Bitcoin that can be used in decentralized finance (DeFi) applications thanks to Nomic’s decentralized method.
“Bitcoin holds the highest value in the crypto world, while Ethereum is the leader in DeFi,” said Matt Bell, CEO of Nomic, to stress how important this change was. It’s time to get past the problems with current BTC-on-Ethereum options and fully add Bitcoin to DeFi.
Bitcoin can be changed into nBTC using Nomic’s autonomous funds. The Cosmos environment lets nBTC be sent between chains that are compatible with it, which means it can be used for more than just Ethereum.
It used to be that the only open way to buy Bitcoin on Ethereum was with tBTC, which was released by the Keep network. Other centralized solutions, like WBTC, have ruled the area, even though they have some problems. Recently, BitGo made steps to move WBTC custody to a partnership with BiT Global. This has caused worry because of centralized control and the role of controversial figure Justin Sun.
A lot of people think that Nomic’s decentralized custody system will change the game. It offers a trust-minimized approach that could make it easier to use Bitcoin in DeFi on Ethereum and other EVM-based networks.
This is a big step forward for the future of decentralized finance. It gives people an open and decentralized way to store their Bitcoin instead of the current, controlled models used in decentralized finance.
