The most popular bitcoin to euthereum cross chain product is wrapped bitcoin.Which is responsible for more than 66% of all cross chain btc with nearly 53000 Bitcoin locked in the system so far.RenBTC,the second most popular transfer protocol,has grown steadly,maintaining the same share of the bitcoin transfer market at approximately 22%.
One large gainer has been Huobis HBTC using to become the third-most popular BTC transfer solution with more than 6% of the overall market.The total number of HBTC has increased more than 570% since the beginning of August,when it stood at under 1000 HBTC ,it's at 4800today.
As the amount of Bitcoin transferred to Euthereum was increased,so to has concerned about centralization and the role third parties play for the three top transfer solutions,WBTC ,RenBTC,and HBTC.
HBTC,which is launched on Ethereum blockchain in February 2020,is the product of Huobi,a centralised crypto exchange based on singapore wrapped bitcoin,a collaboration between several DeFi protocols,including crypto lending services maker and Aave,has always used a system of trusted third party custodians to hold native Bitcoins that back the WBTC
RenBTC was recently caught in controversy after It was publicised that the ostensibly decentralised protocol was (and still is) effectively controlled by members of the Ren development team.
Even euthereum co-founder vitalik Buterin he weighed in calling for increased security from projects holding a large number of native bitcoin on behalf of users.
Inspite of the risks,transfers of Bitcoin to euthereum chain are only accelerating,for some,the allure of DeFi returns will justify the risk of trusted third parties.
But there is a lot of BTC at stake.
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Very nice And informative article.