Through the Ethereum Classic Bridge, ETC Labs will issue a cross-chain asset wETC on Ethereum next month
Recently, James Wo, founder and chairman of ETC Labs, revealed at the Web3 conference that ETC Labs has reached a cooperation with Canadian technology company Chainsafe and will launch cross-chain asset wETC next month.
According to reports, Ethereum Classic will issue cross-chain assets wETC on Ethereum through The Ethereum Classic Bridge (ETC Bridge). This means that through the ETC bridge, ETC will be tokenized on the Ethereum blockchain.
Investors holding ETC can lock assets on the Ethereum Classic chain through smart contracts, obtain the corresponding wETC on the Ethereum chain, and then use the assets to participate in the Ethereum-based DeFi protocol.
At present, realizing cross-chain assets and accelerating the circulation of tokens have become one of the important directions for the development of public chain projects. According to incomplete statistics, public chains including Polkadot, Nervos, and HBTC Chain are deploying asset cross-chain solutions.
In the recent hot DeFi wave, the strong growth momentum of BTC-anchored coins indirectly explained the market demand for assets across chains. Data shows that there are currently about 150,000 Bitcoins in the Ethereum network, valued at more than 2 billion U.S. dollars, which is equivalent to 4.32% of the market value of ETH. In mid-September, the number was only 80,000, which was worth less than 1 billion US dollars at the time.
(The BTC anchor coin is based on the ERC-20 token, that is, the tokenized Bitcoin. Investors can participate in the Ethereum-based DeFi protocol by converting their Bitcoin 1:1 into tokenized BTC)
The growth trend of BTC-anchored coins has led more projects to notice the importance of cross-chain assets and see the investment value of Bitcoin in the DeFi market. According to previous reports from Mars Finance, the Web3 Foundation’s funding of blockchain technology developer Interlay and asset cross-chain protocol project BoringDAO have announced plans to launch their respective BTC anchor coins: PolkaBTC and bBTC.
It should be noted that Interlay will launch Polkadot “BTC Parachain” in Q1 of 2021, allowing users to create a Bitcoin anchor coin “PolkaBTC” on Polkadot 1:1. Users can apply these assets to decentralization. Exchanges, stablecoins and loan agreements.
