Describes the current challenges in the Ethereum ecosystem.
- While Bitcoin makes up 40-60% of the crypto market, the smart contracts dominate Decentralized Exchanges (DEXs), digital swaps, derivatives, and micro banking applications.
- Lack of a proper permissionless and decentralized bridge to transfer Bitcoin value to Ethereum/Matic DeFi has still resulted in over 14B to be transferred as of Oct 2021 either manually or with existing methods that are not suitable for institutional usage.
- The centralized exchanges and systems exponentially increase counterparty risk of theft or loss and an inefficient transfer of value resulting in price slippage.
- Institutions entering the market demand higher standards of custody for their Bitcoin