Will the future of Bitcoin involve interoperability with Ethereum? The Conflux network has indicated that it is working on a solution to become EVM compatible by May 2024.
Towards better integration of Bitcoin and Ethereum?
The best of both worlds. Is the Conflux Network reconciling Bitcoin and Ethereum lovers, or is it a flash in the pan? Yesterday, the blockchain which defines itself as “proof-of-work and proof-of-stake, without barriers” announced the imminent arrival of an evolution allowing interoperability between the two main chains.
Big news! Introducing the new frontier of Conflux: a fully EVM-compatible space powered by BTC!https://t.co/Un8WzaTjh9
🚀 Conflux is launching an EVM-compatible Bitcoin Layer 2.
💰 BTC will be the native currency for gas fee calculations.
🌉 Bridge various asset types from the…— Conflux Network Official (@Conflux_Network) January 18, 2024
This solution, presented as a layer 2 of Bitcoin compatible with EVM, the Ethereum virtual machine, will be launched in testnet between February and March 2024for a mainnet launch in May 2024. Gas fees would be paid in BTC.
“By leveraging the power of Bitcoin, and seamlessly integrating it into our network with forward-thinking features, such as proof-of-stake (PoS)-based staking capabilities, our network offers users “more channels to interact with decentralized applications built on the platform, marking a significant step towards greater interoperability between different blockchains,” describes the project in an article published on Medium.
CFX token price explodes then retraces
While some consider that the year 2024 could see the approval of a spot Ethereum ETF approved, in turn, by the SEC, the American financial markets authority, Conflux’s initiative seems to be part of a desire to take the lead in the influx of liquidity coming from Bitcoin, which could seek to invest in Ethereum.
With this development, if it is carried out successfully, Conflux users will simply be able to better manage cryptoassets based on Bitcoin, such as BTC, but also BRC-20 of the Ordinals, through smart contracts. And for their part, developers will be able to create decentralized applications integrating the three characteristics of Conflux.
As soon as the announcement was made, the price of the $CFX token jumped 20%, going from $0.19 to $0.23 in a few hours. But quickly, the price retraced all this increase, falling below $0.19 on Friday January 19.
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