Vitalik Buterin proposes developing DEX to serve as a trustless bridge between Bitcoin and Ethereum networks

Vitalik Buterin, co-founder of Ethereum, posted a tweet on March 24, claiming that the lack of convenient interaction between the Ethereum and Bitcoin networks is embarrassing. As a solution, he suggested that resources be used to build a decentralized exchange (DEX) to act as a trustless bridge between the two.

Author: Jack Martin | Compiler: Maya

DEX should be trustless and serverless, similar to Uniswap

Buterin’s plan calls for a trustless and serverless DEX with a user experience very similar to Uniswap, a decentralized exchange running on Ethereum that no longer relies on a trust ledger but instead trades asset pairs with ETH as a fixed base currency.

As previously reported, Uniswap has just announced plans to update to V2 in Q2 2020, an update that will allow for direct token-to-token swaps.

Decentralized exchanges are still struggling to gain market share compared to traditional exchanges, even though the latter are undoubtedly more in line with cryptocurrencies in terms of the ethos of trustlessness. Part of the problem is a lack of liquidity, although a dedicated Bitcoin-Ethereum DEX backed by Buterin may be able to attract more funds.

Developing interoperability channels beyond Bitcoin

Vitalin further suggested that Bitcoin is not the only potential target for building a DEX bridge from Ethereum, and other blockchain ecosystems should also be considered.

Buterin specifically mentioned Zcash as an example, saying he has discussed this with Zooko Wilcox, CEO of Electic Coin, the company behind Zcash. However, he acknowledged that more work needs to be done on both sides in order for the conversation to be put into practice.