tBTC

tBTC is a decentralized wrapped Bitcoin that allows users to unlock the value of their Bitcoin for borrowing, lending, minting stablecoins, and providing liquidity. It is backed 1:1 by main-net BTC, offering a secure alternative to solutions that require sending Bitcoin to an intermediary who then issues an Ethereum token representing the original asset.

This conventional model necessitates trust in a third party and can be susceptible to censorship, thereby compromising Bitcoin's promise of secure, permissionless decentralization.

tBTC's Solution

tBTC addresses this issue by utilizing randomly selected operators running nodes on the Threshold Network. These operators secure deposited Bitcoin through threshold cryptography. This means tBTC requires a threshold majority agreement before any action is taken with your Bitcoin.

By rotating the selection of operators weekly, tBTC safeguards against any individual or group of operators colluding to fraudulently seize underlying deposits. An insurance backstop (the coverage pools) serves as an emergency fallback in case a wallet is compromised.

About Threshold Network

The Threshold Network emerged from the merger of NuCypher and Keep networks into one decentralized network. It offers a range of threshold cryptography services for web3 applications through a network of staking nodes governed by a DAO (Decentralized Autonomous Organization).

Noteworthy services provided by Threshold Network include Threshold Access Control (TACo), which facilitates end-to-end encrypted data sharing and communication without needing to trust a centralized authority. Other services include tBTC v2 - the only decentralized and permissionless Bitcoin-to-Ethereum asset bridge - and thUSD - an overcollateralized and decentralized USD stablecoin that uses both ETH and tBTC as collateral.

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