- Ethereum Founder says that it is embarrassing that funds still cannot easily be moved in a trustless way between Ethereum and Bitcoin
Ethereum Founder Vitalik Buterin has proposed that a bridge be setup between Bitcoin and Ethereum, and says that it is embarrassing that there is not an easy and trustless way to move funds between the two biggest cryptocurrencies.
We should put resources toward a proper (trustless, serverless, maximally Uniswap-like UX) ETH <-> BTC decentralized exchange. It's embarrassing that we still can't easily move between the two largest crypto ecosystems trustlessly.
— vitalik.eth (@VitalikButerin) March 24, 2020
Buterin proposes that a serverless and decentralized exchange be setup where users can directly exchange Bitcoin for Ethereum and vice versa. Essentially, smart contracts would be used, where one user locks up Bitcoin in a smart contract and requests Ethereum, and then a user on the Ethereum blockchain locks up their Ethereum in a smart contract and requests Bitcoin, and then their trade will be matched.
This solution requires no centralized infrastructure since all of the data for the trade, and the contract executing the trade, will occur on the Bitcoin and Ethereum blockchains.
Indeed, this solution is highly needed, since at this time the only easy way to exchange Bitcoin for Ethereum or vice versa is via a centralized exchange, which compromises anonymity and is custodial, meaning that coins leave a user’s wallet and enter a centralized exchange, creating a possibility that the user can lose their coins or have their coins frozen by a centralized authority. Buterin’s solution on the other hand would be non-custodial and risk free.
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