Kopalnie Krypto Team - Tuesday 25 April 2023
Wrapped BTC and ETH available on Dexie Exchange!
The Chia Network blockchain is constantly evolving. New functionalities are still being added, and the existing ones undergo significant expansion. Changes and innovations also extend to the trading layer of this revolutionary blockchain. Recently, users have been able to witness dynamic developments in the trading of currencies originating from various blockchains, all without the intervention of centralized exchanges! However, let's start with a few useful concepts and take a step back into the past.
Fundamental Concepts
- Fiat Money – It is the currency we use in our everyday transactions. It is not backed by gold or other goods of trade value. It relies solely on trust in the issuer. This money serves as a legal tender recognized within a specific country and forms the basis of the monetary system. In United States, the fiat money is the US dollar (USD).
- Stablecoin – It is a cryptocurrency whose value is usually tied to a fiat currency. The value of most stablecoins is closely related to the current value of the US dollar (USD).
- Stably – It is one of the platforms issuing stablecoins. As of writing this article, it supports nine different blockchains, including the Chia blockchain. Stably's main goal is to create financial infrastructure that enables the buying and selling of cryptocurrencies with fiat money. Currently, it supports most popular payment methods (e.g., bank transfers, credit cards) in over 150 countries. In simpler terms, it serves as a two-way gateway between fiat currencies and the world of cryptocurrencies.
- USDS – It is a stablecoin issued by the Stably platform. Its value is pegged 1:1 to the US dollar.
- Wrapped Crypto Token – It is the equivalent of a specific cryptocurrency that can be used within its native blockchain. An example of such a cryptocurrency is Wrapped Bitcoin (WBTC), which can be used, for instance, on the Chia blockchain, and its value is equal to that of Bitcoin (BTC).
- BTCS (Stably Wrapped Bitcoin) – It is a wrapped Bitcoin issued by Stably on various blockchains. Its value is equal to the current market price of Bitcoin.
- ETHS (Stably Wrapped Ethereum) – It is a wrapped Ethereum issued by Stably on various blockchains. Its value is equal to the current market price of Ethereum.
- Dexie – A decentralized peer-to-peer exchange (DEX). It can be compared to a notice board where users can post their Chia Offer files. These transactions are fully decentralized and independent of third parties. Dexie does not hold funds during the transaction process. They remain in the Offer creator's wallet until the Offer is accepted. Then, they are securely transferred from the Offer creator to the accepting party. The entire operation takes place safely within a single transaction on the Chia blockchain, and no intermediaries are involved.
A Glimpse of History
On October 25, 2022, Stably announced on its blog the launch of Chia blockchain support. This marked the beginning of USDS stablecoins on this blockchain. It sparked excitement among users, as the appearance of wrapped BTC and ETH on the Chia blockchain was just a matter of time.
On December 13, 2022, Dexie exchange announced that they were working on integrating Bitcoin. The exchange successfully exchanged Layer 2 Bitcoin to Chia without the need for intermediaries using the ChiaSwap tool, which operates similarly to the Lightning Network. Despite promising results, this solution has not been fully implemented by Dexie due to events taking place in the near future.
On December 16, 2022, Dexie exchange announced a partnership with Stably. As part of this collaboration, the first offers enabling the purchase of XCH, NFT, and CAT tokens using USDS stablecoins started appearing on Dexie exchange. This was a significant milestone for trading on the Dexie exchange, significantly increasing its capabilities.
Bitcoin and Ethereum on Dexie Exchange
On April 7, 2023, the collaboration between Dexie and Stably reached another stage. Dexie exchange started offering BTCS and ETHS issued by Stably. This means that exchanging BTC or ETH for XCH is now easier than ever before. The Chia Network ecosystem has gained new and powerful possibilities, becoming significantly more flexible regarding operations between different blockchains.
Summary
The innovations in the ecosystem so far have significantly facilitated the adoption of the Chia Network blockchain. The same applies to the transfer of assets between different blockchains. This is crucial as the profitability of Proof of Work mining decreases, and users seek gateways to other secure projects. The collaboration between Stably and Dexie has created a bridge between the Chia ecosystem and other blockchains and financial systems. Over time, this bridge will gain stability and become easier to navigate.
