- BitcoinOS impressed with plans to bridge Bitcoin and Cardano.
- News of the BitcoinOS token stirred skepticism.
- Charles Hoskinson reveals Input Output will build a Bitcoin bridge.
BitcoinOS unveiled plans for its Grail Bridge at the Cardano Summit . The project leverages zero-knowledge technology to create a trustless connection between Cardano and Bitcoin. The concept garnered positive reactions, with many seeing it as a win-win for both ecosystems, particularly for Cardano, which benefits from Bitcoin’s liquidity.
However, BitcoinOS sparked skepticism after announcing the launch of its own token on November 25. While Charles Hoskinson, CEO of Input Output (IO), was initially open-minded about the token’s purpose, he has since revealed that IO will build its own Bitcoin bridge, marking a shift in the dynamics of its relationship with BitcoinOS.
Cardano-Bitcoin Bridge Is a Top, Top Priority
The announcement that BitcoinOS will release its own BOS token raised concerns about the company’s true intentions, as a theoretical bridge needs only ADA (or equivalent Cardano Native Token (CNT))) and BTC as a minimum.
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While Hoskinson initially urged a wait-and-see approach to BOS’ purpose, he quickly shifted gears and posted a video on November 26, unveiling IO’s plans to develop its own Cardano-Bitcoin bridge.
In the video, Hoskinson outlined how the new bridge would enable Bitcoin users to pay fees directly in BTC. The user experience is designed to be simple and intuitive, with a Bitcoin wallet featuring a button to convert BTC into a wrapped Bitcoin CNT. Importantly, users will maintain control of their private keys on both sides of the bridge, making it a trustless protocol.
Users can participate in the Cardano ecosystem once the BTC is wrapped on Cardano, including earning yield on DeFi protocols or leveraging the upcoming Midnight protocol to bridge to other networks. The process is equally straightforward when users want to reverse the transaction: clicking the button again burns the wrapped BTC on Cardano and unlocks the original BTC on the Bitcoin network.
Hoskinson emphasized that this project is IO’s top priority. He plans to dedicate a specialized team to its development and has already reached out to key figures from his early Bitcoin days to help bring this concept to life.
BitcoinOS Token is Complementary: CEO Explains
Highlighting his respect for Bitcoin, Hoskinson affirmed the validity of Bitcoin maximalists’ “BTC-only” stance, stressing that any bridging protocol should honor their preference to pay fees solely in BTC.
While Hoskinson did not directly critique BitcoinOS or its soon-to-be-released BOS token, he noted that IO was initially excited about their work. However, he cautioned that Bitcoiners “really don’t like other tokens,” adding that any attempt to introduce an unnecessary token into a bridge faces significant challenges.
Amid skepticism over the BOS token, BitcoinOS clarified that the token was intended to function “completely in the back end,” with bridging fees still payable in the native tokens of the connecting chains. Despite this explanation, Hoskinson’s decision to move forward with IO’s own bridge suggests lingering doubts about this approach.
BitcoinOS CEO Edan Yago defended the BOS token , describing it as a complementary tool to ADA and BTC. He framed it as a “coordination mechanism” designed to address interoperability challenges when integrating with multiple chains, arguing that it would ultimately enhance the value of both ecosystems.
On the Flipside
- Hoskinson gave a $250K to $500K Bitcoin price target within the next two years.
- BitcoinOS always planned to bridge Bitcoin with more chains than just Cardano.
Why This Matters
BitcoinOS’ position is in doubt as IO moves to develop its bridge, marking a crucial shift in how Bitcoin DeFi and interoperability may take shape.
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