Bitspark goes multichain: ERC20 token listings
As the year draws to a close Bitspark is hard at work continuing to develop and build out the Bitspark Cash Point network and an important part of growth is ensuring we have the currencies available that our customers want to use in the form they want to use it. Therefore to increase coverage and utility of Bitspark stablecoins we are enabling the usage of our stablecoins on multiple blockchains: starting with Ethereum.
In 2019, USDT, the worlds’ largest stablecoin moved from the Omni protocol, which was slow and poorly developed, to being available on multiple protocols including Ethereum’s ERC20. This is a common protocol to almost every centralised exchange in the world and has made USDT portable for arbitrage as a proxy for USD.
The switch resulted in a 6000% increase of on-chain payments with USDT since the ERC20 version of USDT was adopted en-masse by exchanges.
Bringing Bitspark stablecoins over to ERC20
Bitspark has a number of stablecoins available including trusted (the issuer backs the reserves) and trustless (tokens are created with crypto collateral on the blockchain). We will be bringing them to multiple protocols over the next 6-12 months, starting with Ethereum.
Existing trusted stablecoins are easily portable to other chains with Bitspark operating a bridge between these two protocols - when transferring between protocols coins are destroyed on one side and created on the other side, thus ensuring consistent circulating supply.
For trustless tokens currently issued on Bitshares like stable.PHP and the upcoming stable.IDR and Stable.VND, it is a bit more difficult. While trustless collateralisation can be done on Ethereum, it can’t be done on every protocol. And given the open nature of Ethereum's smart contracts, it’s also riskier from a technical contract deployment perspective to deploy collateralised stablecoins on Ethereum than it is on Bitshares.
Therefore the most likely course of action for bringing trustless stablecoins over to ERC20 is to have a ‘Base’ chain on which the trustless collateralisation mechanics will take place and any other chains we intend to launch that currency on will instead be a trusted IOU for redemption on the base chain.
For example, stable.PHP operates on Bitshares currently and if ported to Ethereum we will issue a trusted token on Ethereum redeemable for stable.PHP held in your wallet on Bitspark. Any pricing variations between the two chains will open up arbitrage opportunities.
In the future we will evaluate the best chain to issue new trustless stablecoins on as a base as this may not be Bitshares. As far as our customers are concerned however, they will just see a currency in the Bitspark app which will hold the value of their national currency, keeping it simple.
Launching Bitspark into the Ethereum world
The move also opens up Bitspark assets to applications and services on other chains such as hardware wallet cold storage on Trezor or Ledger for ERC20 tokens and integration with various DeFi protocols on Ethereum like Bancor, Kyber and Uniswap etc. This will be exciting new areas for us to explore, potentially opening up new and interesting applications for Bitspark tokens too.
In addition to our stablecoins, we will be issuing Zeph on multiple chains as well. As a utility token on Bitshares, Zeph is easily portable to other chains and will be done via the same bridge mechanics noted above. This will bring exciting new features to Zeph users such as being able to hold their coins in cold storage on almost every hardware wallet device or potentially integrating Zeph with other DeFi applications. Buybacks will still take place on the most liquid market wherever that may be.