TechFlow reports that Interlay Labs has released version 0.1 of the BRC-21 token standard. This proposal outlines a standard for minting and redeeming BRC-20 tokens on Bitcoin, which were originally created on other "source" chains such as Ethereum (ETH, DAI...), Cosmos, Polkadot, or Interlay. The proposed meth.
Regarding use cases for this standard, Interlay Labs stated: "While BRC-21 assets could represent ETH, DOT, SOL, etc., on Bitcoin, we believe the primary use case emerging from this standard will be deploying decentralized stablecoins onto the Lightning Network or similar payment protocols. Decentralized stablecoins like MakerDAO, Liquity, or RAI require complex minting, redemption, and liquidation mechanisms to maintain their pegs. Due to Bitcoin's lack of programmability, these protocols cannot be directly deployed on Bitcoin, and this is unlikely to change in the near future. We believe this fully decentralized method of mining and redeeming cross-chain assets from Bitcoin is more likely to achieve mass adoption than spending time engineering protocols on Bitcoin itself—protocols that can elsewhere be expressed in just a few lines of code."
