Blockchain data reportedly shows that less than 1% of all BTC is locked up in sidechains at this point.
Sidechains are a type of scaling solution that enables several new technologies in cryptocurrency, still relying on the famously strong security of Bitcoin.
Binance Rules Bitcoin Tokens, Too
According to CoinTelegraph’s William Suberg, the largest sidechain is used as part of Binance Chain. It contains over 9,000 BTC.
The largest sidechain is used as part of Binance Chain. It contains over 9,000 BTC. Meme from Reddit.
Blockstream‘s Liquid Network, which has received generous media coverage, contains less than 100 BTC.
Liquid Network enables the creation of tokens, much like on the Ethereum network. Blockstream is headed by Adam Back, a cryptographer and programmer cited in Satoshi Nakamoto’s whitepaper.
Bitcoin Still Not The Preferred Token Network
By comparison, a massive amount of Ethereum is locked up in smart contracts. An estimated more than 1% of all Eth in existence is locked up in MakerDAO smart contracts, which are used to support the Dai stablecoin.
If the effort of providers like Blockstream’s Liquid is to make Bitcoin a competitive token-bearing blockchain, they have a long way to go.
For most token-oriented blockchains, it would be odd if the majority of their base token were not in one way or another being used in smart contracts.
A smart contract is the basis of a decentralized application. A decentralized application is a user-centric program that interacts with a distributed ledger technology such as Ethereum or Bitcoin.
As BSN reported earlier today, Ethereum has a tendency to attract developers, with Honest.cash moving away from Bitcoin Cash to the forefather token platform.
Further, as BSN reported earlier this week, Blockchain.com recently launched a gold sidechain with partners.
Discussion on sidechains and layer2 generally' sidechains, statechains, lightning and client-side validation. https://t.co/uCkhS2MM5E
— Adam Back (@adam3us) October 12, 2019
All told, sidechains control just over 0.05% of the total Bitcoins so far mined. The 18 millionth Bitcoin will reportedly soon be mined.
