{"id":10124,"date":"2021-07-27T18:54:18","date_gmt":"2021-07-27T18:54:18","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/stacks-amm-revealed-native-bitcoin-swaps-executed-with-proof-of-transfer-protocol\/"},"modified":"2021-07-27T18:54:18","modified_gmt":"2021-07-27T18:54:18","slug":"stacks-amm-revealed-native-bitcoin-swaps-executed-with-proof-of-transfer-protocol","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/stacks-amm-revealed-native-bitcoin-swaps-executed-with-proof-of-transfer-protocol\/","title":{"rendered":"Stacks AMM Revealed, Native Bitcoin Swaps Executed With Proof-of-Transfer Protocol"},"content":{"rendered":"

According to a recent report, the first trust-less swap between the Bitcoin blockchain and Stacks protocol has been executed. The co-founder of the Stacks protocol, Muneeb Ali tweeted about the native bitcoin swap and said the progress is a big deal. <\/strong><\/p>\n

Trust-less Native Bitcoin Swap Executed With an NFT Called \u2018Boombox\u2019<\/h2>\n

On July 23, a trust-less swap using the Stacks<\/a> protocol and the Bitcoin (BTC<\/a>) blockchain was settled onchain. The swap dubbed the \u201cCatamaran Swap between BTC<\/a> and STX\u201d was discussed<\/a> on the Reddit forum r\/stacks.<\/p>\n

\u201cThe first trustless swap between [the] Bitcoin [blockchain] and Stacks chain is happening,\u201d a user wrote on the forum. \u201cIt is similar to a submarine swap. However, I would call it catamaran swap because we have two chains on top of the water,\u201d the individual added. Further into the Reddit thread, the individual notes that the swap was \u201csuccessfully completed.\u201d<\/p>\n

Native Bitcoin swaps are now live!<\/p>\n

Why is this a big deal? Tweet thread?<\/p>\n

\u2014 muneeb.btc (@muneeb) July 26, 2021<\/a><\/p>\n<\/p>\n

People can see the swap conditions as defined<\/a> on the Stacks chain and then the bitcoin transfer<\/a> and the verification<\/a>. According to the description, the asset swapped was a non-fungible token (NFT) asset called \u201cBoombox (b-12).\u201d The creator of the Reddit post wrote that the \u201cswap demonstrates that you can trigger trustless actions like asset transfers by sending bitcoins from one address to another.\u201d<\/p>\n

The individual added that the feature gives Bitcoin a \u201cnew dimension\u201d because \u201ctransfers can be inspected and validated by smart contracts on the Stacks blockchain.\u201d<\/p>\n

The Stacks project is considered a Layer-1 blockchain that leverages the Bitcoin (BTC<\/a>) blockchain as the base layer. Validation is provided by proof-of-transfer between both networks and similar to Ethereum\u2019s Solidity programming language, Stacks has a programming language called Clarity. The co-founder of Stacks, Muneeb Ali, tweeted<\/a> about the milestone on Monday, as he wholeheartedly believes it\u2019s a watershed moment.<\/p>\n

\u201cUsers can do trustless BTC<\/a> swaps to stablecoins, derivatives, perpetuals, and other crypto assets,\u201d Ali stressed in his Tweet. \u201cAll by pure bitcoin transactions on the main BTC<\/a> chain. Users can purchase any digital assets (like NFTs and decentralized domains).\u201d Ali further remarked that it was a big deal and stated: \u201cBitcoin has established itself as digital gold, but you can\u2019t use BTC<\/a> to trade without going through: (a) centralized exchanges or (b) alt blockchains w\/ wrapped [bitcoin]. Not anymore.\u201d<\/p>\n

<\/p>\n

Muneeb Ali Says Trust-less Swaps Are a \u2018Big Deal,\u2019 Automated Market Maker ALEX Revealed<\/h2>\n

The computer scientist and Stacks co-founder said that wrapped bitcoin is \u201cnot bitcoin\u201d and said that many bitcoiners don\u2019t trust the network models that house these crypto assets. As far as centralized exchange (cex) platforms, Ali mentions that there\u2019s counterparty risk involved and users need to pass KYC requirements. \u201cAll that changes now,\u201d Ali said.<\/p>\n

\u201cStacks is a unique L1 blockchain that enables cross-chain transactions with Bitcoin: smart contracts that work with pure bitcoin transactions. Using Stacks, developers have built trustless swaps with native BTC<\/a>,\u201d the Stacks executive detailed.<\/p>\n

Ali also said that usd coin (USDC) will soon be supported and that \u201ctrust-less BTC<\/a>\/USDC swaps can be possible.\u201d He added that Ethereum features are possible directly on Bitcoin, and users can create \u201cUniswap-like AMMs (Automated Market Makers) built around native BTC<\/a> swaps, [and] do pure BTC<\/a> transactions to interact.\u201d Moreover, Ali highlighted that these features will come with the robust security of the BTC<\/a> blockchain. The Stacks executive\u2019s tweetstorm continued:<\/p>\n

Bitcoin is sovereign money. An entire open financial world will be created around Bitcoin. Native BTC<\/a> swaps to new assets are a foundational building block of Bitcoin defi. Bitcoin eating the banks.<\/p>\n

Of course, a few people mentioned<\/a> to Ali that the project Thorchain has been doing trust-less swaps for quite some time now. In fact, the popular peer-to-peer trading platform Shapeshift leverages<\/a> Thorchain\u2019s tech to complete native swaps. Although, someone was quick to point out<\/a> that Thorchain has been having some issues with hacks<\/a> in recent times.<\/p>\n

The next day, the Stacks executive mentioned the Automated Market Maker (AMM) project being built on the protocol called ALEX<\/a>. The ALEX project describes how the protocol works in a blog post<\/a> published on Tuesday.<\/p>\n

Yesterday, we saw trust-less Bitcoin swaps; today, a new AMM ALEX came out built on Stacks + Bitcoin.<\/p>\n

The Bitcoin revolution is unstoppable.<\/p>\n

\u2014 muneeb.btc (@muneeb) July 27, 2021<\/a><\/p>\n<\/p>\n

According to the website and the recent blog post, the AMM allows users to lend, earn and borrow bitcoin with minimized risk and maximized returns. In a tweet, the ALEX Twitter account says<\/a> that the AMM \u201chelps crypto users preserve their capital and maximize the value of their assets \u2013 we do this by offering fixed-rate lending\/borrowing and superior LTV with higher security and lower fees.\u201d<\/p>\n

Stacks Has Stiff Competition<\/h2>\n

The Stacks team still has some stiff competition with projects like Thorchain, Badger DAO<\/a>, and RSK<\/a>. Many of which already have fully operational defi applications that allow people to chase liquidity pools<\/a> and other types of defi protocols. Alongside this, despite Ali\u2019s claim that people don\u2019t trust the network models with concepts like wrapped bitcoins, the Ethereum (ETH)<\/a> and Binance Smart Chain (BSC) has an enormous lead over projects like Stacks, Badger, RSK, Liquid, and Thorchain combined.<\/p>\n

During the last two years, ETH<\/a> and BSC have seen a plethora of projects that allow cross-chain swaps, synthetic and wrapped bitcoins, stablecoins, AMMs, lending pools, and decentralized exchange (dex) platforms. Just on the Ethereum chain alone, there\u2019s WBTC, HBTC, RENBTC, SBTC, PBTC, TBTC, and IMBTC which adds up to a whopping 250,729 bitcoin<\/a> housed on the ETH<\/a> network.<\/p>\n

What do you think about the swap between Stacks and the Bitcoin blockchain and the AMM ALEX? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nTechnology, ALEX, AMM, Atomic Swaps, Automated Market Maker, Badger, Bitcoin Swaps, DeFi, Defi Apps, Ethereum, Ethereum Sidechain, Exchanges, Muneeb Ali, perpetuals, Proof-of-transfer, RSK, Stablecoins, Stacks, Stacks Blockchain, Stacks co-founder, Stacks Native Swaps, submarine swaps, wrapped bitcoin, Wrapped BTC<\/p>\n","protected":false},"excerpt":{"rendered":"

According to a recent report, the first trust-less swap between the Bitcoin blockchain and Stacks protocol has been executed. The co-founder of the Stacks protocol, Muneeb Ali tweeted about the native bitcoin swap and said the progress is a big deal. Trust-less Native Bitcoin Swap Executed With an NFT Called \u2018Boombox\u2019 On July 23, a…<\/p>\n","protected":false},"author":0,"featured_media":10125,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10124"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10124"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10124\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10125"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10124"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10124"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10124"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}