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Groundbreaking BTC-ETH Swap Proposal Floated by Ethereum Founder Vitalik Buterin

Wed, 03/25/2020 - 07:26
Alex Dovbnya
The DEX market niche remains insignificant, but Ethereum co-founder Vitalik Buterin wants to put it on the map with his new proposal
Cover image via vk.com
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Decentralized exchanges remain a utopian idea despite numerous projects attempting to make them go mainstream. 

The fact that there is no way to swap Bitcoin for Ethereum (and vice versa) without relying on third parties is ‘embarrassing’ for Ethereum founder Vitalik Buterin who recently floated the idea of a ‘trustless’ and ‘serverless’ DEX.

He wants to make it as easy to exchange BTC for ETH as to trade ERC-20 tokens with the help of the Uniswap protocol.   

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Why decentralized exchanges struggle

Entrusting your assets with a third party goes against the ethos of crypto. Centralized exchanges have been plagued by hacks, manipulation accusations, and regulatory hurdles. Yet, the market share of DEXs in the likes of IDEX and EtherDelta barely represents a drop in the bucket

The problem is that DEXs have a slew of shortcomings that overwhelm the allure of decentralization. With extremely low liquidity, no customer support, and a very limited number of trading options, these exchanges are too slow, inconvenient, and cumbersome for traders to touch. 

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Building bridges

Buterin’s proposal extends far beyond Bitcoin. The Canadian prodigy also wants to build DEX bridges between Ethereum and other ecosystems. 

He has already had a conversation about this with Zooko Wilcox, the CEO Electric Coin Company (ECC), to perform swaps between Ether and Zcash. Now, he wants to walk the walk.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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