As a seasoned analyst with extensive experience in the cryptocurrency industry, I believe this collaboration between BitGo and Stacks represents an exciting step forward for Bitcoin and its ecosystem. Having closely followed the developments within the Bitcoin community, I’ve noticed a growing interest in exploring new ways to build on the leading crypto network and expand its functionality.
As a researcher studying the latest developments in digital asset services, I’m excited to share that BitGo, a leading infrastructure provider in this field, has announced support for the Bitcoin layer 2 network Stacks and its new token standard, sBTC. This collaboration aims to expand Bitcoin’s functionality by integrating stacking capabilities.
Based on a communication distributed to CryptoPotato, BitGo is set to become part of the Stacks network in the role of a Signer. This involvement entails supporting blockchain agreement and producing blocks.
BitGo Integrates Support for Stacks
Through the collaboration of BitGo and Stacks, BitGo users have the opportunity to expand their Bitcoin possession without risking asset lending. By employing Stacks’ sBTC, they can earn Bitcoin rewards directly within their wallets.
sBTC is a decentralized 1:1 Bitcoin-backed asset created to enhance Bitcoin’s programmability and BitGo will facilitate the deposits and withdrawals of the asset from Stacks. As a Signer on Stacks, BitGo will enable the conversion between BTC and sBTC across Bitcoin’s layer1 and layer2 networks.
As a researcher studying the process of creating and redeeming wrapped Bitcoin (sBTC), I can explain it this way: To obtain sBTC, I need to transfer an equivalent amount of Bitcoin (BTC) to a script on the Bitcoin blockchain managed by BitGo or another trusted signer. Once the deposit is confirmed, the signer generates new sBTC and sends it to my wallet. The conversion from sBTC back to BTC occurs when I initiate a peg-out transaction, which triggers the transfer of the redeemed BTC to my designated address.
As a BitGo analyst, I’m thrilled to announce that we’re delighted to back Stacks in their mission to broaden the horizons of smart contract functionalities and decentralized applications for both individual developers and institutional clients. Pride fuels us as we offer regulated qualified custody and staking services for STX. We eagerly anticipate collaborating with them on their upcoming innovations.
Building on Bitcoin
In their recent advancement, developers and the Bitcoin community are working together to maximize the capabilities of the foremost cryptocurrency network. As innovation continues among developers, the value locked within Bitcoin has expanded by a factor of seven, surpassing $2.2 billion. BitGo’s involvement as a Signer for Stacks is expected to motivate further development on the Bitcoin layer-2 scene.
“According to Jonathan Sadlowe, General Partner at Gossamer Capital, a venture capital firm that backs early-stage blockchain projects, this action underscores the significant part Bitcoin L2s, with Stacks being a front-runner, will play in broadening the Bitcoin landscape and fostering future advancements.”
investors and institutions are actively exploring opportunities in Bitcoin. Some are making direct investments in Bitcoin-related projects, while others are establishing accelerator programs to support teams developing Bitcoin technologies.
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2024-07-18 17:04