tBTC is a decentralized wrapped Bitcoin that is backed 1:1 by main-net BTC. Unlike other wrapped Bitcoins, tBTC is not held by a central intermediary but is instead secured by a decentralized network of nodes using threshold cryptography. This decentralized approach ensures that tBTC is trust minimized and redeemable for main-net BTC without a centralized custodian.
tBTC can be used across the entire DeFi ecosystem, serving as collateral, liquidity, a store of value, and can be integrated with DeFi apps across all blockchains. It provides cryptocurrency traders and general users with a non-volatile BTC token that can be used to generate yield while holding main-net BTC.
Why use tBTC?
Existing solutions that bridge Bitcoin to the multi-chain ecosystem require users to trust a central intermediary, which is open to censorship and potential fraud. This opposes Bitcoin’s core ethos of a secure and permissionless store of value.
tBTC is a truly decentralized Bitcoin bridge that provides Bitcoin holders with permissionless access to DeFi, eliminating the need for centralized intermediaries.
How does tBTC work?
tBTC replaces centralized intermediaries with a randomly selected group of node operators on the Threshold Network. This group of independent operators works together to secure deposited Bitcoin through threshold cryptography. A majority threshold agreement from node operators is required to mint or redeem tBTC. Node operators are constantly rotated, which protects deposits against any malicious individual or group.
Unlike other solutions on the market, tBTC relies on math, not hardware or people, ensuring the security and integrity of the system.
