Embarrassing –this is the term used by Vitalik Buterin, the co-founder of Ethereum, to describe the lack of a trusted channel and easy movement between the Bitcoin (BTC) network and Ethereum. To finally bridge the gap between the two leading networks in the industry, Buterin suggested the creation of a decentralized exchange (DEX). His tweet about the potential solution was posted last March 24.
We should put resources toward a proper (trustless, serverless, maximally Uniswap-like UX) ETH <-> BTC decentralized exchange. It's embarrassing that we still can't easily move between the two largest crypto ecosystems trustlessly.— vitalik.eth (@VitalikButerin) March 24, 2020
Notably, Buterin is planning to build a serverless and trustless bridge –using Uniswap as an inspiration. Uniswap is a DEX that operates without an order book. It runs on asset pairs in which the fixed based currency is Ether (ETH). Just recently, Uniswap announced that it’s working on an upgrade which would enable users to directly swap tokens for other tokens.
Despite exhibiting the cryptocurrencies’ overall trustless ethos, decentralized exchanges still find it hard to gain market traction compared to traditional exchanges. One reason, according to analysts, is the lack of liquidity. Buterin believes that a dedicated DEX to Bitcoin and Ethereum can make all the difference.
Aside from building a trustless bridge between the two networks, Buterin said that the industry must also consider bridging the other Blockchain ecosystems to further improve liquidity. Notably, he had already talked to Zooko Wilcox, the CEO of Zcash, along with the Electric Coin Company, the co-creator of the network. However, he admitted that the proposal would require every party to work hard to achieve the goal.