The Bitcoin-based platform RSK, which is a 2nd layer solution that facilitates smart contracts and tokens on the Bitcoin (BTC) blockchain, has announced the launch of a ‘bridge’ which facilitates interoperability with Ethereum (ETH).
Users will now be able to cross RSK assets and Ethereum (ETH) based assets. This will make it easier for projects to work on both the Bitcoin (BTC) and Ethereum (ETH) blockchain, with dApps being able to access a broader base of users.
The bridge works via locking the original tokens in a smart contract when a user transfers tokens, and then an equivalent amount of tokens is minted on the destination blockchain. Ethereum-based tokens can be transformed into RSK RRC20 tokens, and RSK RRC20 tokens can be transformed into ERC777 tokens.
Apparently RSK is not the only platform that has interoperability between Bitcoin (BTC) and Ethereum (ETH) since Wanchain launched a bridge in 2018. However, Wanchain is more like a middle man, while RSK truly combines the networks, allowing developers to leverage the strengths of both blockchains.
Right off the bat, a project called Money on Chain, which is a stablecoin that uses Bitcoin (BTC) as collateral says it will use the RSK bridge to access DeFi apps on the Ethereum (ETH) network.
This interoperability bridge between Bitcoin (BTC) and Ethereum (ETH) has the potential to expand the capabilities of dApps, and to make the Bitcoin (BTC) and Ethereum (ETH) economies more connected.