Welcome back,
The inter chain blockchain communication was best delivered to this world by Cosmos blockchain. Atleast as per my knowledge cosmos is known for Inter chain Blockchain communication and that is the reason why i have alot of respect for the people behind who came up with that idea back in 2019.
In today's blog, I want to share about an addition to this Cosmos Ecosystem. So the latest addition to the cosmos ecosystem is ranked number one crypto currency, Bitcoin.
Just to let readers know there were few ibc's in the past that took initiative for introducing coins like btc, matic, etc but eventually we did not saw them working towards what they promised. Cosmos is now coming up with a bridge that is known as the new Nomic bridge via which btc will be able to communicate on cosmos blockchain.
The token that will be issued on the cosmos ecosystem will be known as nBtc, 'n' probably is used after the name of the bridge itself that is the New Nomic Bridge. This will going to be a huge blockchain upgrade that will take place on 27th of October though the activation to general public will be available by 30th of October.
Why are their concerns about the Inter Chain Bridges?
Though it is a good news that bitcoin will soon be coming to cosmos ecosystem, there are concerns about the same as bitcoin as well will need an inter chain bridge to communicate with other blockchains and when the interchain bridges are mentioned there are some concerns raised by the people.
Let me share with you all about what are the concerns with these bridges. According to a data the amount of crypto that was lost due to hacks since 2016 are mostly due to these inter blockchain bridges. Almost 37% of the total value lost in crypto hacks were related to these bridges protocols.
I have used bridges in the past and so i have my own observation about why these bridges are really a point of concern.
Problems with Bridge protocols in the past
37% of the total value lost was due to these bridges as shared above.
Bridges are controlled by group of people and that gives a chance of fraud itself. We can never trust on a centralised services.
Decentralisation is needed here as that will help people trust these bridges, probably for me this can be a big change.
So is the New Nomic Bridge Safe?
After researching for a while here are few points that i came to know about the new Nomic bridge being developed for the bitcoin on cosmos ecosystem.
It is decentralised, this means not a single entity will control the bridge and so it automatically makes this bridge more trustable compared to other centralised protocols in the market.
Bitcoin will not be locked on the Nomic bridge like other bridges and here the bitcoin will actually be stored as a reserved output on the bitcoin blockchain itself.
This means that the funds are only going to be released only after the validators for the bridge signs that transaction.
So with these points in mind we can atleast say that the new Nomic Bridge is safer compared to the other bridges protocols already surfing in the market.
Conclusion
To conclude i would say that it is really a good step taken as now there will be various new defi possibilities on cosmos ecosystem getting unlocked for the people holding BTC.
If you have been following Cosmos then you would know that this was in the talks for a very long time and finally this is happening. We can expect to see some positive moves by cosmos by the end of October that is this month itself.
To end this blog, I would say that the new Nomic beidge in my opinion will going to help people who have liked the defi services on cosmos ecosystem as bitcoin is also added into the list of crypto currency that will flow on cosmos now.
In the end i would love to hear out from the readers on how they see this. The comment section is open for all so go ahead and write what you feel about it in the comments.
Thank You