Bitcoin-Ethereum Connection DeFi Service

A virtual asset financial service has emerged that allows you to receive interest by depositing Bitcoin (BTC) without exchanging it for Ethereum (ETH) or get a loan with other virtual assets such as Ethereum.

Since most virtual asset financial services called decentralized finance (De-Fi, De-Fi) are based on the Ethereum blockchain, it was difficult to use Bitcoin as it is in the De-Fi service. It is now possible to implement the DeFi service using Bitcoin, which ranks first in market capitalization of virtual assets by using multi-chain technology.

On the 20th, PyLab Technology, a blockchain technology company, announced that it will support Bitcoin deposit and loan services through its self-developed DeFi service, ByFi.

By-Fi users can deposit their bitcoins in By-Fi and get a loan with bitcoins. In addition, you can deposit Bitcoin and borrow other virtual assets such as Ethereum using it as collateral, or you can borrow Bitcoin after depositing Ethereum.

Since most of the existing DeFi services are based on the Ethereum blockchain, it was impossible for the blockchain to directly support other Bitcoins. To solve this problem, DeFi provided an indirect Bitcoin deposit/loan service using the ‘wrapping token’, which is an Ethereum-based ERC-20 token that is linked to Bitcoin and its price, such as WBTC.

Vifi explained that Fi Lab solved this problem by implementing a multi-chain environment that directly connects the Ethereum network and the Bitcoin network through Bifrost, a blockchain middleware platform developed by Fi Lab.
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Expand the target of DeFi support such as clay-polka dot

FiLab has also strengthened the security of the DeFi service by applying the technology to detect transactions that occur in the Bitcoin network and deliver them to the Ethereum network through cryptography-based verification.

FiLab is planning to actively expand the BiFi ecosystem, starting with BiFi’s Bitcoin deposit and loan service. For example, deposit and loan services for non-Ethereum-based virtual assets such as Klaytn (KLAY) and Polkadot (DOT) will be additionally started, and a multi-chain wallet to support this will also be launched.

Do-Hyun Park, CEO of PyLab, said, “ByFi’s support for ‘direct’ deposit and loan services for Bitcoin is significant in that it is technically possible to use Bitcoin without a smart contract directly in other blockchain networks. “Only 1% of Bitcoin’s market cap is circulating in the DeFi ecosystem, and I hope that more bitcoins will flow into the DeFi ecosystem through ByFi, so that the entire market expands.”

Reviewer overview

Bitcoin-Ethereum Connection DeFi Service - A virtual asset financial service has emerged that allows you to receive interest by depositing Bitcoin (BTC) without exchanging it for Ethereum (ETH) or get a loan with other virtual assets such as Ethereum./10

Summary

A virtual asset financial service has emerged that allows you to receive interest by depositing Bitcoin (BTC) without exchanging it for Ethereum (ETH) or get a loan with other virtual assets such as Ethereum.

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