One project is gearing up to make significant changes in the upcoming days as Nomic, in collaboration with the Cosmos network, is about to unleash a robust bridge that will connect the gap between Bitcoin and the Cosmos interchain connectivity. Nomic is expected to launch IBC-enabled nBTC on October 30. Users can directly use the Bitcoin address to transfer Bitcoin to the Cosmos ecosystem through Nomic’s cross-chain bridge.
IBC-Enabled nBTC Launch Comes Near
Nomic is undergoing a significant upgrade to enable IBC transfers of nBTC, marking a crucial milestone in making the bridge fully functional. This enhancement will empower users to seamlessly deposit their native BTC and utilize it across a spectrum of widely adopted Cosmos applications and platforms, including Osmosis, Kujira, Levana, and more.
Historically, users faced challenges in seamlessly integrating BTC into the Cosmos Network due to a lack of decentralized solutions. To address this long-standing issue, Nomic is empowering users to transform their BTC holdings into nBTC, an IBC-compatible token. Importantly, this transformation process is designed to be user-friendly, requiring minimal steps and eliminating the need to convert BTC into a different cryptocurrency.
With this move, users can directly use the Bitcoin address to transfer Bitcoin to the Cosmos ecosystem through Nomic’s cross-chain bridge. Nomic marks the finalization of core bridge functionalities, including critical security features like the Emergency Disbursal and circuit breakers.
Moreover, this update paves the way for the implementation of IBC (Inter-Blockchain Communication) on Nomic, utilizing Informal System’s ibc-rs library. Notably, this development has made Nomic one of the first non-Cosmos SDK blockchains to implement IBC in production.
This upgrade is poised to establish Nomic as a prominent gateway to the Cosmos ecosystem, unlocking access to the vast reservoir of dormant Bitcoin assets valued at over $500 billion.
The eagerly anticipated nBTC Interchain Upgrade is scheduled for release on October 27, with activation expected on October 30.
Nomic Enables Smooth Interchain Deposits
One of the most eagerly anticipated features in the upcoming upgrade is the introduction of Interchain Deposits. This innovative capability enables users on any Cosmos chain to effortlessly transmit BTC to a designated deposit address and seamlessly receive nBTC in their account, eliminating any unnecessary intermediate steps. This functionality mirrors the user-friendly deposit experience that has long been a hallmark of centralized exchanges.
Behind the scenes, this process involves a connection to a specialized Bitcoin script responsible for transferring the funds to the bridge and initiating an automatic IBC transfer to convey the nBTC to the user’s account on the destination chain.
Furthermore, the upgrade extends its support to Interchain Withdrawals, allowing users of integrated applications to input a Bitcoin address. This action promptly facilitates the transfer of BTC onto the Bitcoin blockchain. This bi-directional functionality ensures a seamless and efficient interchain experience for users across the Cosmos ecosystem.
Kujira, the pioneering adopter, leads the way in integrating Interchain Deposits. This project focuses on equitable markets and innovative DeFi products, including Sonar, a native mobile wallet, and the decentralized USK stablecoin.
With the upcoming upgrade, nBTC will become usable on Kujira. Users can deposit BTC via BLUE web or Sonar mobile apps, mint USK using nBTC collateral, engage in nBTC lending on GHOST, bid on liquidated nBTC on ORCA, and explore various trading options.
Osmosis, the Cosmos ecosystem hub, will also support direct BTC deposits and nBTC trading. Levana, a perpetual swap exchange built on Osmosis, follows suit.
Keep in mind during the initial bridge stages, there’s a capacity limit of 21 BTC to manage reserve growth. This limit is subject to Nomic DAO governance adjustments in the future. Additionally, NOM staking tokens remain non-transferable and are not traded on exchanges, pending governance decisions.
