Many crypto projects have claimed to be the new Bitcoin or improve upon the existing BTC. Most of those projects fail miserably, although pBTC may be an interesting exception.
Through pBTC, one can effectively ask their Bitcoin holdings on the Ethereum blockchain.
pBTC for DeFi and dApps
It is the second cryptocurrency to be tokenized in this manner, following pEOS in December 2019.
Given the popularity and potential of BTC, tokenizing it can make a lot of sense.
Through pBTC, users can directly export their Bitcoin holdings to take advantage of Ethereum’s DeFi industry or dApps.
Every pBTC is an ERC-20 token representation of the associated BTC value.
All Bitcoin is locked to allow for the minting of pBTC.
Although this functionality is still in the testnet stag, it can unlock tremendous potential.
DeFi on top of Bitcoin’s blockchain seems virtually impossible to achieve, after all.
That being said, the future of DeFi on Ethereum is anything but certain at this point.
Several recent disturbances highlight the premature nature of this concept.
Ultimately, the goal is to bring pTokens to any blockchain, rather than focusing just on Ethereum.
It is an interesting way of improving interoperability between different ecosystems.
In terms of liquidity, it can be rather beneficial as well.