Ethereum and Bitcoin then have a trustless bridge through Arbitrum L2.

According to the company, the templates level BitcoinOS and Arbitrum One have integrated, enabling trustless bridge between Bitcoin and Ethereum.

Abritrum’s integration with BitcoinOS allows for Ethereum transactions to be settled finally using Cryptocurrency, while Bitcoin owners can use their BTC to function within the Ethereum ecosystem.

This allows for significant expansion in Bitcoin-based DeFi, with primary source Edan Yago arguing that BitcoinOS’s option is the first “real” illustration of Bitcoin DeFi.

He states to Decrypt,” All other forms of bridged Bitcoin, such as Wrapped Bitcoin ( WBTC ), require users to trust a multisig controlled by a few companies who can collude and steal your money at any time.”

Yago claims that the new integration” will likely be trusted by far more people and capital than all past Bitcoin solutions because the BTC secured via the BitcoinOS Grail bridge may become non-custodial and so under the total control of owners.”

And what’s particularly exciting about the integration for Yago is that, because Arbitrum is already the largest Ethereum-based layer-two network ( according to L2BEAT ), it will become the largest Bitcoin L2 network “overnight”.

The Arbitrum Foundation has ambitious goals for the connectivity, with Nina Rong, head of alliances, suggesting that a large percentage of Bitcoin’s circulating price may be plugged into the Arbitrum-based habitat.

” We’re excited&nbsp, to&nbsp, see&nbsp, BitcoinOS&nbsp, leverage&nbsp, our&nbsp, network to unlock the massive$ 2 trillion Bitcoin liquidity pool for DeFi and smart contract applications”, she said in a press release.

Up until now, anyone wanting to use Bitcoin for DeFi purposes would have had to convert their holdings into WrappedBTC, which currently has a cap of$ 12.6 billion, or roughly 0.65 % of BTC’s current value.

However, receiving WBTC requires entrusting your BTC to a third-party steward, which is BitGo, as BitcoinOS donors like Yago allude to.

Additionally, BitGo has recently faced some constitutional issues, starting with Coinbase’s withdrawal of WBTC in December and then its announcement in August of a relationship with Justin Sun-affiliated BiT Global.

Therefore, it might be appropriate to introduce a non-custodial solution, with BitcoinOS and the Abitrum Foundation claiming that their inclusion would be appropriate.

Edan Yago– who is also the co-founder and CEO of BitcoinOS designer BTC OS – goes yet further, telling that he believes ​​Bitcoin-based DeFi did “erupt like a sports stay in the next two years”, with the Ethereum- and Arbitrum-based DeFi ecosystems likely to witness related growth spurts.

This is, in his opinion, due to Bitcoin users finally gaining access to the decentralized apps and ecosystem that they have been clamoring for for 15 years.