Integrating Bitcoin into the Cosmos network marks a significant milestone in blockchain interoperability. Ecosystem developers have embarked on a pioneering journey to bridge the two prominent blockchain ecosystems, unlocking new possibilities for decentralized finance, cross-chain asset transfers, and much more. These Ecosystem developers are bringing Bitcoin to Cosmos network.

This collaboration showcases the potential of blockchain technology and exemplifies the relentless pursuit of innovation within the cryptocurrency space. Along with Nomic and Kujira, Osmosis, the biggest decentralized exchange (DEX) on Cosmos, will add Bitcoin to the IBC protocol that bears its name.

How to Transfer Bitcoin to the Cosmos Network

Ecosystem Developers are Bringing Bitcoin to Cosmos Network

According to a statement on October 3 at the Cosmoverse 2023 Conference, customers can transfer Bitcoin to the Cosmos network via Osmosis’ Nomic bridge for 1.5% of the transaction value. Then, Nomic Chain issues Nomic Bitcoin (nBTC), an IBC-compatible cryptocurrency, to users on a one-to-one basis. On Osmosis, the nBTC can be bought, sold, and utilized as liquidity. Additionally, they work with more than 50 app chains connected to Cosmos.

Sunny Aggarwal, co-founder of Osmosis, commented:

“Bitcoin is in deep need of an application DeFi ecosystem, and Cosmos requires a base money asset that can serve as its primary store of value. Nomic will help make this long-awaited union for a Bitcoin-centric Cosmos a reality.”

“The Cosmos ecosystem is too important for it to lack a seamless and secure way to receive BTC,” added Matt Bell, CEO of Turbofish, Nomic’s founder and core contributor. “We see today’s announcement as the beginning of the most seamless and secure way to on-ramp users into the Cosmos ecosystem with BTC,” he continued.

The Nomic-Bitcoin Interchain Upgrade

Ecosystem Developers are Bringing Bitcoin to Cosmos Network

On October 27, the nBTC Interchain Upgrade will be made available on October 30, and it is anticipated to go live. Users can deposit Bitcoin to the decentralized finance system Kujira’s Sonar wallet address and self-custody their nBTC thanks to a separate agreement. Users’ BTC and nBTC wallets can be recovered using identical seed phrases. Additionally, the nBTC can be used as collateral for loans and borrowings within the ecosystem and to mint the native stablecoin USK of Kujira. Users can also place bids on liquidated nBTC collaterals.

According to Nomic’s creators, the cross-chain bridge would have a hard cap of 21 BTCs during the initial phases of nBTC’s introduction.

“When the bridge reaches its capacity limit, applications will not be able to generate deposit addresses, and users will not be able to deposit more BTC. This parameter will be controlled by Nomic DAO governance in an upcoming upgrade,” developers wrote.

In conclusion, As Bitcoin and the Cosmos network join forces through the diligent efforts of ecosystem developers, the future of blockchain interoperability becomes increasingly promising. This groundbreaking development is a testament to blockchain technology’s ever-evolving nature. It also illustrates its capacity to adapt and thrive in a rapidly changing digital landscape. Integrating Bitcoin into Cosmos opens new opportunities, setting the stage for a more interconnected, efficient, and robust decentralized ecosystem.