According to Nomic’s announcement, Bitcoin will now be operational within the Cosmos ecosystem, enabling third-party platforms and apps to take advantage of the native token’s digital capabilities. Users can add Bitcoin to programmes like Kujira and Levana, to name a couple. The community was informed during Cosmoverse 2023 that the update would support the IBC transfer of nBTC.
Users can use nBTC, an IBC-compatible token, without ever having to convert their cryptocurrency. The blockchain must be based on Cosmos, and that is the sole requirement. Users that choose to take full advantage of this option will only need to take a few simple actions to integrate. Beginning on October 27, 2023, the interchain upgrade will be operational by October 30,2023.
Benefits will be shared between Bitcoiners and Nomic users. For instance, Nomic will be able to access the supply of Bitcoin, which is valued at $500 billion or more. It implies that Bitcoin users will soon have access to fascinating DeFi items.
To address the issue of insufficient decentralisation and seamlessness, Nomic developed nBTC. This has to do with how BTC is incorporated into the Cosmos ecosystem. By enabling users to move their holdings over the Cosmos-based blockchain, nBTC removes this barrier. With this breakthrough, Nomic is now the first blockchain to deploy IBC that is not part of the Cosmos SDK.
Moving forward, Nomic has promised to work to improve the bridge’s effectiveness and security. The Nomic Reserve script may change, which is one development the community may anticipate.
Early on, the bridge will only be able to carry a certain amount of traffic. To allow reserves to develop more slowly, the cap has been placed at 21 BTC. Once the bridge is filled, users are unable to add more money. Additionally, after reaching full capacity, apps are unable to generate any more deposit addresses.
Kujira is the first to implement the milestone. Due to the integration of Interchain Deposits, its thriving community will soon be able to access nBTC. Through the BLUE Web application, users can deposit BTC. Users can also manufacture USK by maintaining nBTC as collateral, lend nBTC, borrow nBTC, and make a bid on nBTC that has been liquidated, among other operations. Needless to say, users have access to additional features.
Osmosis will continue the pattern by enabling users to purchase and sell the token in addition to supplying liquidity for nBTC. Through the Osmosis Zone UI, they can add Bitcoin. These actions will be replicated for Levana’s users.
Days after Nomic revealed that mainnet Bitcoin was operational on Nomic, the announcement was made. On June 30, 2023, an evaluation of the Nomic Bitcoin Bridge’s contribution to the ecosystem’s adoption of Bitcoin took place.
On October 27, 2023, Bitcoin with nBTC goes live in Cosmos; however, the mechanism won’t work until October 30, 2023.