A new blockchain protocol aims to unite Bitcoin and Ethereum, the two largest cryptocurrency networks, through an innovative approach called "tunneling". This development comes as the crypto community seeks alternatives to cross-chain bridges, which have been plagued by security vulnerabilities.
Jeff Garzik, an early Bitcoin core developer, founded the Hemi Network to create this link. The project views Bitcoin and Ethereum as components of a larger supernetwork.
Unlike traditional bridges, tunneling creates an environment where Bitcoin and Ethereum can coexist. This approach aims to eliminate attack vectors associated with bridges.
Max Sanchez, co-founder and CTO of Hemi Labs, explained the key differences. "We are using deep Bitcoin introspection in HVM to build an extremely secure, trust-minimized Bitcoin tunneling system," he said.
The system is based on an adapted version of BitVM2. It focuses on enabling efficient transaction processing while maintaining Bitcoin-level security. Hemi's protocol allows users to move assets between Bitcoin and Ethereum networks.
Sanchez added, "People will be able to tunnel Bitcoin assets through Hemi to Ethereum." Thus, this development could bring secure Bitcoin-based asset tokenization to the Ethereum ecosystem.
The project recently raised $15 million from investors including Binance Labs.
Meanwhile, Ethereum co-founder Vitalik Buterin has outlined plans to address interoperability issues. He predicts rapid progress in solving layer-2 interoperability problems.
Buterin unveiled a roadmap for Ethereum, which includes proposals like EIP-3370 and EIP-7683, aimed at improving cross-network functionality.
"I think people will be surprised by how quickly cross-L2 interoperability problems stop being problems," Buterin stated. He envisions a smooth user experience across the "Ethereum-verse".
The Ethereum co-founder also commented on rollup technology. He expects all rollups to eventually adopt zero-knowledge proofs, though this transition may take "5+ years".
As these developments unfold, the crypto industry watches closely. The success of projects like Hemi Network could reshape the landscape of blockchain interoperability. The enormous fragmentation is still seen as one of the main obstacles for mass crypto adoption by many experts.