BitGo, the custodian, will discuss with developers and the community the possibility of launching an Ethereum sidechain to transfer Wrapped Bitcoin (WBTC). The move was prompted by rising fees in the Ethereum network, according to CoinDesk.
“During the whitepaper stage, we contemplated alternatives in light of rising fees. We will determine whether there is community interest in issuing a sidechain for [transfer — editor’s note] Wrapped Bitcoin”, said BitGo CTO Ben Chan.
Chan explained that BitGo has not yet set a timeline for the initiative. The key factor is not the technical execution of the project, but assembling a development team, he added.
The number of WBTC at the time of writing stood at 46,524. According to the BTC on Ethereum service, the market capitalization of this token is nearly $530 million.
On August 13 the average Ethereum gas price hit a historical high, reaching $7.40.
Last week miners opposed a 75% reduction in the block reward proposed in EIP-2878.
ShapeShift founder Erik Voorhees predicted that, due to rising Ethereum gas fees, ordinary users will soon be shut out of DeFi protocols. In his view, the situation could only change with a shift to ETH 2.0 in 1-2 years.
He suggested that to meet demand developers will be forced to move DeFi applications to Cosmos via Ethermint.
Prediction: Ethereum gas fees ruin Defi for normal users
until Ethereum 2.0 in 1-2 years). To meet demand, developers start rapidly
porting Defi components over to Cosmos via Ethermint which just launched and is
apparently compatible with Solidity already 😬 https://t.co/i37egVoyWl—
Erik Voorhees (@ErikVoorhees) August
24, 2020
Developers confirmed the launch of ETH 2.0 Phase 0 this year amid issues with the Medalla testnet.
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