No bridging is differnet, you're essentially sending your coins to a Bitcoin multi-sig and then a custodian lets say BitGo issues a token on lets say Ethereum and you get token BTC on ETH,
Its claimed to be backed, but there's no real way to enforce that on-chain, if you want to reclaim the Bitcoin you have to hope once you return the tokens to the smart contract the custodian will release the bitcoin back to you on the main chain.
I think you're always taking economic risk moving to another blockchain/L1, if you price any other chains native asset in bitcoin you can see its a straight downward trajectory pricing in sats
You also have little oversight into other chains, how many chains can you run a node on cost effectively? You're just taking that chain at their word and interacting with 3rd parties, like ETH you trust the validitors, you trust the code, you trust the wallet provider, you trust the nodes, you trust the cloud service provider the validators.
How do you verify anything when the cost to eliminate all those 3rd parties and use the chain directly prices most people out?
TheBitcoinManual
npub10mx…n8mj
2024-06-09 09:07:22
in reply to nevent1q…dzga
Author Public Key
npub10mxnle348mzv2dnj0ylgz3zu9gceenc29x9fr4m6mnars66j7vxsnkn8mjPublished at
2024-06-09 09:07:22Event JSON
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"created_at": 1717916842,
"kind": 1,
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"content": "No bridging is differnet, you're essentially sending your coins to a Bitcoin multi-sig and then a custodian lets say BitGo issues a token on lets say Ethereum and you get token BTC on ETH,\n\nIts claimed to be backed, but there's no real way to enforce that on-chain, if you want to reclaim the Bitcoin you have to hope once you return the tokens to the smart contract the custodian will release the bitcoin back to you on the main chain. \n\nI think you're always taking economic risk moving to another blockchain/L1, if you price any other chains native asset in bitcoin you can see its a straight downward trajectory pricing in sats\n\nYou also have little oversight into other chains, how many chains can you run a node on cost effectively? You're just taking that chain at their word and interacting with 3rd parties, like ETH you trust the validitors, you trust the code, you trust the wallet provider, you trust the nodes, you trust the cloud service provider the validators. \n\nHow do you verify anything when the cost to eliminate all those 3rd parties and use the chain directly prices most people out?\n\n",
"sig": "61a40ab023b580750e59a20fbb7c95f8142d2eaba6324322260af15a37cc1f56e8c983f8c14dee9b334a75468b01ce6ad2acc6f5616457035ec08d47e74fa5b3"
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