What’s clear, though, is that Ethereum’s rising tokenized bitcoin sector is already joining the ranks of stablecoins, DeFi, DAOs, and NFTs as the top smart contract platform’s earliest and brightest stars.
Major growth ahead seems all but certain because there’s major growth happening in the here and now: in recent months, the amount of activity around tokenized bitcoin efforts has been exploding. As such, new implications and new projects have been coming to the fore in the cryptoeconomy.
Ethereum: Bitcoin’s Top Scaling Solution to Date?
The Lightning Network is a layer-two scaling protocol that’s been proposed as the leading scaling solution for Bitcoin. The system helps take BTC transactions off-chain as a means of decreasing congestion on the Bitcoin blockchain proper.
The advantage of Lightning, then, is that it can work directly with bitcoin. However, after several years of development, the system still has non-trivial UX drawbacks. The system’s not down and out, far from it, but more than a few folks think it should be further along than it is right now.
On the flip side, Ethereum’s scaling scene is starting to heat up. The recent advance of layer-two Optimistic Rollup (ORU) solutions is a major step toward scaling Ethereum 1.0. And in a matter of weeks, the first phase of Ethereum 2.0 kicks off. This will put Ethereum on a direct path to sharding, a powerful scaling technique, in the years ahead.
With all that said, Ethereum as it stands can already power faster and cheaper transactions than Bitcoin. With the rise of ERC20 bitcoin tokens on Ethereum, then, the reigning smart contract platform has already become something of a de facto scaling solution for BTC.
This dynamic is only set to increase as Ethereum continues to mature along its development roadmap and things like…