Interlay uses Intel SGX? Although not “decentralized” per se, yes you could’ve a much cheaper BTC bridge that ways.
You could have several signer SGX enclaves, each held by exactly one trusted “invulnerable” collator. A small threshold of these sign the BTC tx, which includes some validator bitfield and a commitment, and imposes some waiting period. Anyone could dispute the BTC tx by fronting the 0.005 BTC fee, after which the singers must post the full tx with all the validator signatures. All this still involves some development work though. Is that worth it vs ploding along and more slowly building a decentralized BTC bridge?
I don’t see the logic here - nor do I think “the community” can be represented by a blogpost response, as the vast majority of DOT holders are aloof to these discussions. How could it possibly make sense to devalue your currency by selling it for a different one? Why would anyone buy DOT if Polkadot is itself selling it? How does this not incentivize people to also sell their DOT for BTC?
Yes exactly, but we could’ve a BTC bridge, and applicaitons that use the BTC bridge, so then other people secure their BTC on polkadot and use those applicaitons. Those applications & users would link the DOT and BTC values somewhat, but the question remains: What applications?
You cannot simply says “defi” either, becuase BTC holders & traders seem used to pretty andvanced financial productions now, like options and swaps, beyond what our ecosystem’s defi teams understand. We should and will build a bitcoin bridge, but how quickly should depend somewhat upon our abaility to do stuff with said bridge.
Hello, I don’t really understand your response, as I am not familiar with building decentralized bridges. However, I think this convo shouldn’t about on how to build new decentralized bridges, instead we should discuss the economic side of the question: Is it the good time to start DCA some DOT for BTC?
Hello @hippiestank! I’d like to share my thoughts about the proposal. Please note that these are strictly my personal opinions:
First of all, I love Bitcoin! <3 Bitcoin will have a huge role in the future of our world. I think it totally makes sense for a DAO to hold some BTC. From the biggest companies like MicroStrategy to small local businesses, many have started accumulating BTC on their balance sheets. I even know of a Hungarian football club that began investing in BTC in recent years.
That said, I also love DOT! Unfortunately, DOT is currently at an all-time low as it has lost over 90% of its value compared to its ATH in USD. Its price performance against BTC is even worse. That’s the sad reality.
So while I support the idea that the Polkadot DAO should invest in BTC, I don’t think now is the right time to start DCA’ing into it. Additionally, your proposal mostly outlines the execution plan for swapping DOT to tBTC. OFC, the technical details are important, but the proposal lacks any meaningful projections regarding the success of the investment. If someone wants to convince me that the Polkadot DAO should start swapping DOT into BTC in the current market conditions, I would want to see detailed projections with charts and diagrams covering best case, base case, and most importantly, worst case scenarios. I’m especially thinking about questions like: What if the community waits until DOT reaches $20 or 0.0001 BTC/DOT? I’d love to see calculations and visualizations comparing these scenarios. Timing matters a lot!
So yes, I’d like to see forecasts on the Polkadot DAO’s potential capital growth, revenue models, opportunity cost analyses across multiple scenarios, etc. I know the market is unpredictable and none of the projections are guaranteed to play out, but such calculations can still help decision-makers evaluate the best course of action.
So, I look forward to your response and analysis! :))
This doesn’t inspire a lot of confidence in the native DOT coin, does it? By enacting something like this, which I must add, might make sense for the short-term, but for the long-term future of DOT, the energy should be applied to bring more utilities to the Polkadot ecosystem and do it fast! IMHO, Making DOT more attractive is the best way to secure its Treasury.
This is an absolute banger! It needs to be done, we are not competing, we are part of the ecosystem. Regarding current price dynamics, start DCA asap. The best time to plant a tree was yesterday, the next best time is today. I would even vote for a bigger chunk of BTC, diversification builds resilience.
However, I think this convo shouldn’t about on how to build new decentralized bridges, instead we should discuss the economic side of the question: Is it the good time to start DCA some DOT for BTC?
