Bitcoin layer-2 network, Stacks, will deploy its synthetic Bitcoin (sBTC) on the Solana blockchain. Stacks founder Muneeb disclosed this at the ongoing Solana Breakpoint Conference in Singapore, noting that this is an opportunity to bring the Bitcoin asset to faster rail.
The sBTC is a decentralized version of wrapped Bitcoin compatible with smart contract platforms such as Solana. According to Muneeb, the integration of sBTC into Solana will bring new opportunities for developers by allowing Bitcoin holders to use their assets for a variety of new use cases on the network.
He said:
“The little alpha we want to drop here is that the Stacks developers are working on bringing sBTC to Solana.”
Meanwhile, the announcement was made only a few days after Stacks announced that it would integrate the sBTC with the ultrafast layer 1 network, Aptos, so that Bitcoin could be used in decentralized applications.
Muneeb explained that its sBTC represents an alternative to centralized wrapped Bitcoins such as the Bitgo WBTC and Coinbase cbBTC, noting that a significant percentage of Bitcoin holders prefer decentralized bridges for wrapping and unwrapping their BTC without needing to trust a centralized entity.
Why is sBTC coming to Solana?
The Stacks founder also explained the reason for its planned integration with Solana, noting that the network is a faster and better rail for Bitcoin. It can be used for several purposes beyond what it currently serves on the Bitcoin network. He added Bitcoin on Solana could be programmable, opening many frontiers for developers.
According to Muneeb, BTC is an excellent asset in itself. However, despite all the advancements and improvements, the Bitcoin network remains a relatively poor programming network, which leaves much of Bitcoin’s potential untapped.
He said:
“The mental model is that Bitcoin the asset is different from Bitcoin the rail. Yes, we agree that Bitcoin L1 the rail suck. You can’t program anything there, it’s slow as hell. But Bitcoin the asset is amazing. So you can change the rails.”
He added that the Stacks developer community is trying to move into Rust, Solana’s programming language. This would enable apps natively running on Stacks to be similar to those on Solana, making it possible for developers to deploy similar products across the networks.
Although Muneeb did not provide details about how the integration of sBTC would happen, it will likely involve integrating Stacks with Solana, enabling the network to serve as a decentralized bridge for the transfer of liquidity from the Bitcoin network to the Solana ecosystem.
Stacks has recently improved its technical capabilities and launched some parts of its Nakamoto upgrade in April this year. While the upgrade is yet to be completed, the protocol has already seen improved block production and transaction speed performance, making its integration with other networks more seamless.
Solana inches close to $150 as excitement returns
Meanwhile, Solana SOL has increased almost 2% in the past 24 hours and gained over 6% over the past week, highlighting the return of positive sentiment among investors. After struggling for multiple weeks due to a decline in memecoin activity, the recent Feds rate cut sent its price soaring above $150 for the first time since August 27.
Despite being down to $146.29 presently, there is still a positive momentum around the token due to several announcements of upcoming integrations and deployments on the network. Over the last 24 hours, Stacks, Sky Protocol (formerly MakerDAO), SG Force, and Franklin Templeton have all reportedly announced future plans involving the network.
PayPal vice president of Blockchain and Digital currencies unit Jose Fernadez da Ponte also reportedly endorsed Solana as a better payment solution than Ethereum while promoting the launch of PYUSD on Solana, highlighting its speed and cost-effectiveness.
Many people in the Solana community consider these upcoming integrations as an endorsement of the Solana network, noting that SOL is set to see a massive surge in value.
Source: https://www.cryptopolitan.com/stacks-synthetic-bitcoin-solana/