Web3 Foundation Is Funding a Project To Bring Bitcoin to Polkadot Via BTC-Parachain

The non-profit organization behind Polkadot, which is the Web3 Foundation, has decided to finance a new bridge that links the blockchain Polkadot network to Bitcoin (BTC).

The London-based developer company Interlay is going to be funded by Web3 and build a BTC Parachain that brings BTC-backed assets onto the Polkadot network. The parachain will use the open source XCLAIM framework and leverage collateralized intermediaries.

Polkadot Uses Parachains to Link Other Networks

Polkadot was launched back in 2016 by Gavin Wood, the co-founder of Ethereum. They connect and launch blockchain-based apps by employing parachains to link various networks. As soon as the Polkadot BTC bridge is be finished, users can access and employ the parachain in order to create PolkaBTC on the 1:1 rule by using their deposited BTC. The original BTC will be redeemable at any time. Here’s what Interlay had to say about XCLAIM:

“XCLAIM is on average 95% faster and 65% cheaper than using HTLC atomic swaps with Bitcoin.”

The Parachain Stores DOT Collateral

The parachain is completely interoperable on the Polkadot ecosystem and stores DOT collateral that users can have allocated through a premium in case the redemption process fails. The Web3 Foundation is regulated in Switzerland and has been issuing grants between $3,000 and $100,000 to different projects that aim to improve the Polkadot platform.

According to Web3’s GitHub page, the foundation has financed almost 100 projects in 5 different funding waves until now. Some of its other projects are a Metamask plugin, an EOS interoperability bridge and a parachain that Links Polkadot to the future Libra ecosystem.

The Polkadot Ecosystem Fund

Back in October 2019, Web3 launched a Polkadot ecosystem fund with Polychain Capital. While it hasn’t been mentioned how much this new fund had set aside, the sum was in the millions, said a spokesperson then. How much Interlay is going to receive is not yet clear, as grant amounts for each team are not to be disclosed, mentioned another spokesperson.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Oana Ularu
Oana Ularu
Curious about what’s going on with all the money in the world, Oana is bringing you the latest news in the crypto world. She’s aware of the fact that you need to know everything that’s happening on the financial scene in order to play the cryptocurrency market, so you can count on her to share with you every little detail on what matters.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,274FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

DeFi Growth & Stablecoin Surge Most Bullish Crypto Development: DCG State of Crypto 2020 Survey

39% of the respondents that involve 150 portfolio companies see DeFi as the most bullish crypto development of 2020, as per the DCG Founders...

Non-Custodial Bitcoin Exchange, Hodl Hodl, Launches Lending Service Without KYC

Hodl Hodl, a non-custodial Bitcoin exchange, is launching a KYC-free lending product for its customers. The exchange claims that its lending product would be...

Total Value Locked in Harvest Finance Surpasses $1 Billion, Up 366,200% Since September

Decentralized platform Harvest Finance that provides users a way to farm assets for the highest yields now has more than a billion dollars in...

Strong Institutional Demand for Bitcoin, CME Becomes Second Largest BTC Futures Market

Bitcoin's price made a big shift this week as the bulls gained control of the market and pushed it past $13,000. A similar shift has...

PoolTogether's ‘No Loss' Gambling Platform Utilizes Chainlink’s VRF on Ethereum to Select Winners

Chainlink announces its verifiable random function on the Ethereum mainnet, bringing a host of benefits to the decentralized platform. PoolTogether, a gamified savings platform...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today