The Cardano testnet has gone online, according to AnetaBTC, a startup that aims to provide on-chain wrapped BTC to Cardano and Ergo. For the Ergo blockchain, anetaBTC made its public testnet available in January.
AnetaBTC seeks to inject Bitcoin liquidity into Cardano and Ergo in order to support these top blockchains’ projected DeFi boom.
Consequently, the introduction of the testnet, which enables the creation of cBTC, a BTC asset on Cardano that is comparable to wrapped Bitcoin (wBTC) on ETH, is viewed as a benefit for the Cardano blockchain.
The introduction of the testnet is also a significant step towards the launch of Cardano’s anetaBTC mainnet protocol.
Writing smart contracts that move Bitcoin to a vault if a user wishes to mint cBTC is a major component of AnetaBTC’s strategy as it works to provide essential infrastructure for the Cardano ecosystem. Users will be able to utilise cBTC as a Bitcoin-backed asset on Cardano as soon as it is minted.
There will be three stages of the anetaBTC protocol: V1, V2, and V3. V1 is controlled by anetaBTC and is not decentralised. The off-chain code checks the BTC deposit transaction including metadata with the user’s address programmatically in V1’s vault, where BTC is delivered. This version will be totally decentralised when V3 is put into use.
Three narratives to push next market run for ADA
According to the Cardano-focused Twitter account ADA whale, the next bull market for ADA might be driven by three narratives: DeFi, governance, and scale.
According to an ADA whale, “These narratives will probably drive ADA next bull market: DeFi (c. 2024: wow, Cardano is now a top 10 TVL chain, surprise, surprise, etc.), Governance (c. 2024: biggest and most well-funded DAO ever headlines), and Scaling (c. 2024-25: Hydra integrated in dapps, Leios Soon).”
ADA was trading at $0.391 at the time of writing, down 2.28% over the previous day.
