Addressing the Cross-Chain Dilemma
For years, traders transferring Bitcoin across chains have encountered a recurring issue: deciding whether to rely on bridges, custodians, or wrapped assets while accepting the associated risks of hacks and potential fund losses. Chandra Duggirala, CEO of Portal to Bitcoin, believes that this compromise was never a satisfactory solution.
“We’re solving a very old problem – fair exchange over the internet – in a way that preserves Bitcoin’s trust model,” he stated during a recent interview. The vision of the company emerged by steering clear of shortcuts like custodians and bridges. Instead, Portal aimed to demonstrate that atomic swaps could effectively scale into a trustless alternative worth billions in trading volume.
The Role of Atomic Swaps
The core of Portal to Bitcoin revolves around the atomic swap – a cryptographic assurance that two parties will either complete a trade or nothing occurs. “It’s called atomic not because of nuclear energy,” Duggirala pointed out, “but because the trade is indivisible: it either happens in full or not at all.”
This mechanism bypasses the challenges that have affected bridges and wrapped assets, where funds are reliant on third parties. “With atomic swaps, the blockchain itself acts as escrow,” he clarified.
Introducing BitScaler
At the center of Portal is BitScaler, a protocol designed to enhance the security of Bitcoin atomic swaps while making them scalable for real-world trading volumes.
Duggirala described it as an integration of multiparty channels, channel factories, and non-custodial delegation into a single system. “Liquidity providers retain custody of their funds, traders never relinquish ownership, and validators merely ensure the network operates without the capability to misappropriate user assets,” he mentioned.
In contrast to wrapped BTC or message-passing bridges, BitScaler guarantees that worst-case scenarios result in funds being time-locked, but not lost.
Token Generation Event and Economic Modeling
The Token Generation Event (TGE) for Portal occurred in early September. “The design is simple,” Duggirala explained. “If liquidity wanes, traders cannot trade. If validator rewards diminish in value, the network won’t remain active. The token encapsulates network demand and redistributes it to those who are performing the work.”
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Economic modeling was conducted in collaboration with John Conley, a prominent microeconomist and advisor to the Kansas City Fed, ensuring that tokenomics are rooted in logical design.
Backing and Market Position
Portal to Bitcoin has garnered support from Coinbase Ventures, OKX Ventures, and Arrington Capital, but Duggirala stressed that having partnerships isn’t sufficient: “As a startup, you must take charge of your own distribution. Partners can assist, but the responsibility for adoption lies with you.” Portal to Bitcoin focuses on integrating with other L1s and ecosystems where users are already trading, such as Solana and Ethereum.
When asked about competitors, Duggirala was straightforward: “The competitors are bridges, message-passing protocols, and wrapped tokens. They make the same promises but provide weaker guarantees. In Portal, user funds remain in their custody. That’s the distinction.”
He added that gaining adoption will hinge not only on security but also on user experience, including factors like liquidity depth, speed, and user-friendly interfaces.
Looking to the Future
Looking ahead, Duggirala is convinced that the broader market will not replicate previous cycles. “Markets are fragmenting. Each token, each network is now on its own cycle,” he observed. “However, the demand for secure, trust-minimized methods to transfer value remains unchanged. That’s what Portal aims to deliver.”
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