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$77 MILLION OF BITCOIN NOT AVAILABLE TO USE

Millions of BTC are locked in sidechains – a newborn market

by Poker King|October 17/2019|views: 66

Reports say that $77 million worth of Bitcoin (BTC) are not available for usage due to being locked up in sidechains.

SIDECHAINS: NEW MARKET TO CONQUER

Recent data from block experts confirms that 9,661 BTC, or $76.96 million is stuck in three sidechain projects.

BINANCE SIDECHAIN JUMPS ON TOP

As of today (October 17th), Binance Chain has a total of 9,001 BTC, or approximately $71.74 million. In comparison, the Liquid Network, originally launched in September 2018, has dwarfed with a modest $709.700, or 89 BTC.

Other chains are the Wrapped Bitcoin (WBTC) sidechain, an Ethereum-based ERC-20 token, totaling with $4.55 million, or 571 BTC. WBTC launched in January 2019, few months earlier than the deputing in April Binance Chain.

Earlier this week, another Blockchain wallet provider launched a Bitcoin sidechain. CoinShares debuted their DGLD as a form of a gold token network.

The token’s legal entity is based out of Switzerland and is a legal member of the Swiss self-regulatory organization Financial Services Standards Association.  

Danny Masters, CoinShares presidents commented:

“DGLD combines the stability of the world’s most sustainable asset, gold, with the security of the most resilient network in the world, Bitcoin. […] You can now have the peace of mind that comes with physical gold held in a Swiss vault, with the same convenience as holding an ETF on gold, but not the same levels of middlemen.”

WHAT IS SIDECHAIN?

Sidechain is a chain of separate blocks, based on one main parental blockchain. They bring new ecosystems to the blockchain via integrations into Bitcoin. The sidechain extension allows a link or build between Bitcoin and any altcoin, creating a set of independent services that function through the main Bitcoin blockchain. Sidechains allow creation and usage of smart contracts, derivatives, stocks, etc. Whilst the blocks within the Bitcoin blockchain are limited, it is possible to develop a limitless amount of Ethereum or Bitcoin-based sidechains with different features and tasks, depending on the blockchain’s volatility.