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Avalanche Launches Bitcoin Brdige Through Web3 Wallet Core

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Ethereum competitor Avalanche has announced new support for native bitcoin (BTC) via its bridge solution built on its Core crypto wallet. Following the news, his own AVX token has skyrocketed, outperforming major digital assets like Bitcoin and Ethereum in the last 24 hours.

Wrapped BTC on Avalanche

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Ava Lab — the backbone of the Avalanche smart contract platform — has launched a new bridge solution that allows users to tokenize their BTC as an Avalanche-based asset called BTC.b. The newly introduced “wrapped” BTC could make the Avalanche DeFi ecosystem available to users of the Bitcoin network. Official blog post declared:

“This allows Bitcoin holders to directly access the vast earning and yield opportunities on leading DeFi protocols while keeping BTC in their portfolio.”

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The current BTC bridge is only available in the Avalanche Web3 wallet core. The post notes that the Core Chrome Extension is a customizable product that supports cross-chain bridging, enabling access to other blockchain-based assets on the Avalanche network.

“The core wallet extension was specifically created to support Bitcoin and the Avalanche Bridge, and to address the technical issues associated with connecting the Bitcoin and EVM chains in the wallet.”

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Just as wrapped BTC — a tokenized type of bitcoin that lives on the Ethereum blockchain — was injected into ETH via smart contracts, Avalanche will also lock each bitcoin received as a deposit and mint an equivalent amount of BTC.b given its network. The labs said the bridge would not expose users to counterparty risk and trust issues, as happens with Ethereum-based BTC.

Cross bridges

To link BTC to the first layer blockchain, users need to process two types of fees, including 1) BTC network fees and 2) fees that the bridge charges the user (also known as Bridge Toll).


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According to the post, the bridge will allow bitcoin holders to access Avalanche subnets and other blockchain networks such as Ethereum.

The Avalanche Bridge was launched last year to pool assets between the Ethereum and Avalanche networks. Thus, compatible with the Ethereum virtual machine (EVM), applications and Dapps on Ethereum can be easily transferred to Avalanche. Meanwhile, users can stake Ethereum-based assets in Avalanche DeFi protocols to generate income.

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Credit : cryptopotato.com

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