The blockchain-powered blockchain entity from London Interlay reportedly released a Bitcoin (BTC)-based cross-chain bridge operating on Polkadot (DOT). 

Specifically, the new bridge – going by the name “interBTC (iBTC)” – will reportedly make it possible for users to utilize Bitcoin on non-native blockchains for DeFi, cross-chain transfers, and NFTs, among others.

InterBTC reportedly functions as a BTC-backed stablecoin, secured by a decentralized network of overcollateralized vaults, which as revealed by Interlay, bears resemblance to MakerDAO’s DAI token, a stablecoin based on the Ethereum blockchain.

The iBTC vaults aim to take advantage of mixed-asset collateral to provide insurance to BTC reserves, making iBTC redeemable on a 1:1 ratio with BTC over the Bitcoin blockchain. 

As a preventive measure during unforeseen vault failure, the collateral is programmed to get slashed and reimburse the BTC depositors. 

“Bitcoin is the driving force behind global crypto adoption, while Polkadot, Ethereum & co. is where technological innovation is happening. With interBTC, we combine the best of both worlds while preserving the trustless nature of Bitcoin.” Interlay co-founder and CEO Alexei Zamyatin additionally remarked regarding the thought process leading to the initiative. 

Interlay’s disclosure further underscored Ethereum co-founder and Polkadot inventor Gavin Wood’s vision of building a fully decentralized Polkadot-based Bitcoin bridge, which became a reality thanks to interBTC. 

Acala and Moonbeam will be the pioneering DeFi hubs to provide the hosting environment for iBTC’s debut, which will be supported by a $1 million liquidity program offered by the Interlay network treasury and partner projects.

The roadmap for iBTC involves being available on other major DeFi networks, including Ethereum, Cosmos, Solana, and Avalanche.