AnetaBTC, an initiative aiming to introduce on-chain encapsulated BTC to Cardano and Ergo, has announced the launch of the Cardano testnet. anetaBTC published its public testnet for the Ergo blockchain in January.
AnetaBTC desires to introduce Bitcoin liquidity to Cardano and Ergo in order to contribute to the anticipated DeFi expansion of these prominent blockchains.
Consequently, the introduction of the testnet, which enables the minting of cBTC, a BTC asset on Cardano comparable to wrapped Bitcoin (wBTC) on ETH, is viewed as a positive for the Cardano blockchain.
The launch of the testnet is also a significant milestone for the mainnet launch of the anetaBTC protocol on Cardano.
AnetaBTC continues its efforts to construct critical infrastructure for the Cardano ecosystem, and a key component of its strategy is the creation of smart contracts that send Bitcoin to a vault when a user wishes to mint cBTC.
There will be three phases of the anetaBTC protocol: V1, V2, and V3. V1 is not decentralized; anetaBTC governs it. V1 has a vault to which BTC is sent, and the off-chain code verifies the BTC deposit transaction containing user-specific metadata. This version will be entirely decentralized upon implementation of V3.
The Cardano-focused Twitter account ADA whale believes DeFi, governance, and scaling may drive the next bull market for ADA. At the time of writing, ADA was trading at $0.391, down 2.28 percent in the previous twenty-four hours.
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