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About tBTC Summary
Key Points
- tBTC is a decentralized wrapped Bitcoin, 1:1 backed by main-net BTC.
- It’s trust minimized and redeemable for main-net BTC without a centralized custodian.
- tBTC can be used as collateral, liquidity, a store of value, and integrated with DeFi apps across all blockchains.
Why Use tBTC?
- tBTC provides a decentralized Bitcoin bridge, allowing permissionless access to DeFi.
- It opposes centralized models that require trusting a third party and are open to censorship and potential fraud.
How Does tBTC Work?
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About tBTC: A Decentralized and Trustless Bridge Between Bitcoin and Ethereum
Introducing tBTC: A Revolutionary Take on Bitcoin on Ethereum
tBTC is a decentralized, wrapped representation of Bitcoin, backed 1:1 by main-net BTC. Unlike its counterparts, the BTC reserves underlying tBTC are not custodied by a central intermediary, but rather secured by a decentralized network of nodes, leveraging threshold cryptography.
tBTC is a trust-minimized and redeemable representation of main-net BTC, unencumbered by a centralized custodian, thereby facilitating seamless integration across the entire DeFi ecosystem.
tBTC serves as a versatile digital asset, capable of functioning as collateral, providing liquidity, and storing value, while seamlessly integrating with decentralized finance (DeFi) applications across diverse blockchain ecosystems.
Similar to other BTC wrappers, tBTC offers cryptocurrency traders and general users a stable BTC token, enabling them to earn passive income while maintaining ownership of their main-net BTC assets.
Unlock the Power of Bitcoin on the Ethereum Network: Why Choose tBTC?
Current solutions that facilitate the integration of Bitcoin into the multi-chain ecosystem necessitate users to relinquish control of their Bitcoin by sending it to a centralized intermediary, which then exchanges it for an Ethereum-based token that symbolizes the original asset.
This centralized paradigm necessitates entrusting a third party, thereby rendering it susceptible to censorship and vulnerable to potential fraud, which fundamentally contradicts Bitcoin’s core philosophy of a secure and permissionless repository of value.
tBTC is a genuinely decentralized Bitcoin bridge, offering Bitcoin holders unrestricted, permissionless access to the vast expanse of DeFi opportunities.
The Operational Mechanics of tBTC: A Comprehensive Overview
tBTC supplants traditional centralized intermediaries with a decentralized ensemble of node operators on the Threshold Network, where a randomly selected cohort of independent operators collaborates to safeguard deposited Bitcoin through the innovative application of threshold cryptography.
A consensus threshold among node operators is necessary for minting or redeeming tBTC, thereby ensuring a secure and decentralized process. Furthermore, the continuous rotation of node operators provides an additional layer of protection against potential malicious activities, safeguarding deposits from any individual or collective threats.
Distinguishing itself from other market solutions, tBTC’s operational integrity is rooted in mathematical certainty, rather than relying on hardware or human intervention.
The Circulating Supply of tBTC: An Overview
The tBTC (v2) Protocol was successfully launched on January 31, 2023, and features a dynamic circulating supply that fluctuates in response to the number of tBTC minted and redeemed. Notably, the minting process currently entails a 0.2% fee, which is allocated to the Threshold Network DAO. For a comprehensive breakdown of the tBTC circulating supply and mint/redemption statistics, please refer to
https://dune.com/threshold/tbtc
.
The Genesis of tBTC: Who Are the Masterminds Behind This Innovative Token?
tBTC was born out of a collaborative effort by contributors at the Threshold Network DAO, leveraging the Threshold Network’s cutting-edge threshold cryptography to craft a secure BTC asset. As a flagship product launched on the Threshold Network, tBTC paves the way for a multitude of decentralized applications currently under development.
Threshold Network DAO was born from the pioneering on-chain merger of two decentralized protocols, Keep Network and NuCypher, in early 2022. Since then, the DAO has thrived, fostering a vibrant community of contributors dedicated to advancing tBTC liquidity and usability.
Where to Acquire and Utilize tBTC?
tBTC is increasingly accessible for trading on a diverse range of exchanges and blockchains, where it is paired with a multitude of other assets.
tBTC can be leveraged across a diverse range of DeFi applications, empowering users to harness the potential of their BTC holdings while ensuring a secure and reliable experience. For a comprehensive overview of tBTC integrations and to get started, please visit threshold.network.