Interoperability network Interlay has reportedly published a 21-page technical whitepaper, dedicated to the development of cross-blockchain interoperability solutions, to discover potential across the DeFi ecosystem. 

Specifically, Interlay – functioning as a Polkadot (DOT) parachain – is reportedly shifting its resources towards opening pathways of communication and interaction between Bitcoin’s currency-native ecosystem, with the broader features of the DeFi sphere with different network, nominally Ethereum (ETH) and Polkadot.

The freshly rolled-out XCC protocol – operating as an extra layer of XCLAIM, which was released to the market four years ago – reportedly gives way for an advanced level of asset sovereignty throughout cross-chain activities like wrapping, together with unifying Bitcoin multisigs with mechanisms typically native to the Ethereum network such as commit chains.

In order to preserve the purported perks of risk aversion and capital efficiency, the XCC asset will reportedly be accessible inside the scope of curated DeFi applications. 

Nonetheless, users will reportedly be able to transition to the interBTC product, should they expect a more flexible alternative. 

Both services will reportedly operate alongside each other, widening the potential capabilities of Bitcoin’s DeFi market to a wider consumer audience.

Per insights from their assessment, XCC reportedly guarantees that “any Bitcoin that locked in a long-term staking, with no intention of moving, can essentially “release” its collateral, which can then be “reused to secure other, “liquid” BTC being bridged, making it possible for vaults to serve more users with the same collateral. 

“interBTC, aiming to become the equivalent of DAI for BTC, has already decentralized Bitcoin custody. However, the goal always was to achieve non-custodial BTC DeFi — a very hard problem to solve. XCC sets a milestone in this regard, finally enabling theft resilient and easy-to-use Bitcoin DeFi.” Interlay co-founder & current Head Alexei Zamyatin further shared his vision for XCC, regarding decentralized adoption.