On May 2nd, the Brooklyn-based ConsenSys team announced the live release of BTC Relay the first production sidechain conjoining Ethereum together with Bitcoin. The sidechain uses Ethereum-based contracts to securely verify Bitcoin transaction enabling users to pay with BTC to use the ETH platform. The project is open source and is the first program to interoperate both cryptocurrencies together with decentralized smart contracts.
The BTC Relay Sidechain Conjoins The Best of Both Worlds
With the program, BTC Relay developers can now install a “Pay with Bitcoin” button to their constructed applications. The platform is fully decentralized and does not rely on a central authority or use any intermediaries. Additionally, BTC Relay has been added to the decentralized exchange EtherEx, and either coin can be swapped without the risk of a central point of failure. Furthermore, Relay could be used to distribute an “Ethereum-based ‘BTC’ token (ETHBTC) based on locking actual BTC tokens in a multisig on the Bitcoin protocol.” Joseph Chow, developer of BTC Relay stated in the announcement: