What is tBTC? How to store Bitcoin in tBTC?
Today, what I want to introduce to you is tBTC, which may be unfamiliar to some novice investors. So let's look at what is tBTC.
What is tBTC?
TBTC is an Ethereum ERC-20 currency, which is derived from Ethereum and other digital currencies. Its main function, in short, is that customers can deposit digital currency in the market into Ethereum without intermediary or password.
Advantages of tBTC:
1. Reduce transaction risk and basically avoid the risk of password theft;
2. Fast response, no need for a centralized organization to process data, and truly achieve "B2B";
3. Privacy protection, because a variety of transcoding processes have been enhanced, makes it more difficult for hackers to crack.
1. The depositor puts down the bonds and pushes the deposit request transaction to the tBTC smart contract on Ethereum;
2. Select a signing group, and the Ethereum contract will return the BTC wallet/savings address created by it;
3. The depositor sends the BTC to the savings address, and then sends the transaction including the fund certificate to the tBTC smart contract;
4. The contract forged tBTC and beneficiary token, both of which have been sold to savings.
How does the TBTC work?
If you understand Maker DAO and how to create DAI, you may be aware of some mechanisms that make tBTC possible. For example, tBTC uses price, bonds and arbitrage opportunities to maintain the integrity of the system.
In short, users who want to store the tBTC into Bitcoin are set up and controlled by a group of bound signers in an untrusted way. These bridges encourage good behavior and punish dishonesty so that system participants maintain integrity. At present, the deposit is only in the fixed size, which may be a large amount of 1 bitcoin. Moreover, all signer bonds are charged by ETH.
How to store Bitcoin in tBTC?
1. The depositor puts down the bond and pushes the deposit request transaction to the tBTC smart contract on Ethereum
Push the savings request transaction signal to the smart contract. You want to forge a new tBTC based on the savings bitcoin. The depositor needs to put down the bonds by ETH to start this process. The deposit is used as a form of anti spam system and returned to customers at the end of savings.
2. Select a signing group, and the Ethereum contract will return the BTC wallet/savings address it created to
When creating a savings address, the system will randomly select a group of signers, who will together generate a Bitcoin wallet. Therefore, the new Bitcoin wallet must have M out of N signatures to generate efficient Bitcoin transactions.
In order to make the signer honest, those who wish to become the signer must lay down the ETH guarantee in proportion to their risk to the system composition. For example, if the BTC wallet must have three of the five signatures, each signer must have an ETH bond equal to 0.33 BTC.
3. The depositor sends the BTC to the savings address, and then sends the transaction including the fund certificate to the tBTC smart contract.
The depositor obtains the deposit BTC address returned by the smart contract, and pushes 1 BTC to it. After the transaction is confirmed, the depositor submits the transaction including the certificate, which is verified by the signer on the chain using the Simple Payment Verification (SPV) system.
4. The contract forged tBTC and beneficiary token, both of which have been sold to depositors
The signing group verifies the fund certificate and sells the tBTC token to the depositor. The TBTC smart contract takes 0.0005TBTC of each deposit as the beneficiary's bond. In addition, the depositor can also receive ERC-721 token, which indicates the beneficiary or the person receiving the deposit in the future.
Speaking of this, I believe you have a certain understanding of what is tBTC and how to store bitcoin in tBTC. In general, tBTC is a decentralized, redeemable ERC-20 token supported by BTC. There is no KYC, no intermediary, no nonsense, anti penetration, anti leverage, and anti inflation. Its goal is to link up with strong supply across the chain, which is infinitely close to the "hard currency" state that Bitcoin linked assets can achieve.