It can be frustrating and disorienting when you have some bitcoin and cannot use it on the ethereum blockchain, considering that Ethereum has so many decentralized applications for different purposes, including decentralized finance systems. However, blockchain has come a long way, and with it has come the creation of a plethora of possibilities, including being able to use Bitcoin on the Ethereum chain.
There are several reasons why a lot of bitcoin users have shown skepticism about DApps and DeFi systems; apart from the complexity of these Ethereum projects, a major problem was the inability of bitcoin users to transact or use their bitcoin on ethereum blockchain-based platforms.
tBTC to the rescue
ERC-20 tokens come with a lot of flexibility, which invariably provides diverse possibilities for users. In order to have a token with BTC backing, tBTC was created, and one of its major roles is to remove the uncertainty that comes with joining the DeFi community the first time. It may also interest you to know that both the ethereum and bitcoin blockchains have their peculiarities and strengths, and a combination of their strengths provides a simplified way for bitcoin users to safely and securely get involved in the development of the DeFi ecosystem. Bitcoin users do not need to be left out of the efficient benefits of DeFi benefits. Here are some tBTC features to look forward to:
In order to strengthen the bridge between Bitcoin and Ethereum, there is a 1:1 pegging of tBTC with BTC.
Simplifying the process of converting BTC to tBTC is one of the highlights of the protocol, and it can be achieved in 3 simple steps.
Auditing the open-source protocol regularly is one of its security frameworks. In addition to the different components that make up the security architecture, the protocol also uses the t-ECDSA algorithm which is known for its improved security implementation processes.
Users enjoy seamless person-to-person transactions without interference from a central authority, as is the case of centralized systems. It brings simplicity to performing transactions anywhere and anytime.
The decentralization of the Ethereum blockchain has paved the way for the development and functionality of decentralized applications and decentralized finance projects. Decentralization eliminates 3rd party interference, and thus enables permissionless transactions between users within the community.
Uncertainty is one of the reasons why a lot of Bitcoin users have not joined the DeFi trend, and the implementation of tBTC takes away that uncertainty, and creates a transparent ecosystem where BTC users can perform transactions safely, securely, and transparently.
We are well aware of the fact that Bitcoin has dominated the crypto market with its market capitalization, and on the other hand, Ethereum dominates the developer space with its numerous decentralized applications and development of decentralized finance projects. With a project like tBTC, Bitcoin’s liquidity, security and stability can be combined with the innovative advantages that come with the ethereum blockchain, to provide a safe spot for bitcoin users to invest in Ethereum-based projects.
What is tBTC without the Keep Network
Privacy is an important factor to consider within the crypto community, and Keep brings that solution to the tBTC framework. It ensures that important network data and components are private. Furthermore, Keep provides randomness to the system with the implementation of its random beacon that facilitates the selection of signatories when performing tBTC deposits. Here are some reasons why tBTC needs the Keep protocol for its seamless operations:
Transaction privacy is a priority, and Keep ensures that different network protocols maintain their privacy in order to prevent putting the system in jeopardy. For signing groups to perform their functions, they need an unknown private key, and the randomness of signer selection also helps make the system even more private.
Safety and Security
Data security cannot be overemphasized, considering that everything evolves and revolves around data, private data in the wrong hands comes with dire consequences. Keep takes data security seriously, and that is why its functionality with tBTC is both on-chain and off-chain. While tBTC’s functionalities take place on-chain, Keep uses the ECDSA protocol to securely store private data off-chain.
Basically, this means that users of the tBTC platform do not need to bother about trusting their transactions or not, because the system is designed to be trustless. Keep provides a way for the random beacon’s signers’ groups to reduce risks that could be caused by defaulting parties. The implementation of the signers’ groups ensures that users can perform transactions without 3rd party interference, and without the fear of defaults on transactions by involved parties.
It is important to note that in order for tBTC to perform its operations efficiently and effectively, it needs to be trustless, and as mentioned earlier, Keep has that taken care of with the integration of the signer randomness feature.
Convert to BTC and tBTC with Ease
Crypto assets are evolving within the crypto community, and with decentralized finance projects gaining momentum, the market has begun to grow exponentially. The creation of tBTC has provided a means for Bitcoin users to partake in DeFi projects on the ethereum blockchain. Users can use their Bitcoin for Ethereum transactions in very straightforward steps:
- Request a tBTC transaction
- Select a signing group and input the wallet address where the tBTC will be deposited. The signers will act like an escrow holding the bitcoin trustlessly and securely.
- When the bitcoin gets to the signers, you will get the equivalent tBTC which is pegged at 1:1 (assuming you use 3 BTC, you will get 3 tBTC)
Furthermore, the above process can also be performed in reverse with the same steps.
Imagine the possibilities of leveraging the amazing abilities of the Ethereum blockchain with bitcoin, that is what tBTC offers you, and Keep makes it transparent, secure, and private enough for transactions to be performed safely, seamlessly and efficiently. tBTC has a lot of potential, and is bringing some amazing changes to the DeFi community.
Amazing news for all #tBTC and Keep Network supporters. Yesterday, Kraken Exchange announced $KEEP and $tBTC listings:
Come in join all discussions in our Discord community. You will meet a lot of great and will get a chance to get all your questions answered and contribute to the community!
Other #KEEP and #tBTC related articles:
- Bitcoin on Ethereum Blockchain, fairy tale, or reality? An introduction of tBTC
- From Bitcoin to earning Yield with tBTC and Keep Network
- The Best Crypto Trading Bots
- Deribit Review | Options, Fees, APIs and Testnet
- FTX Crypto Exchange Review
- The Best Bitcoin Hardware wallet
- Crypto Copy Trading Platforms
- The Best Crypto Tax Software
- Best Crypto Trading Platforms
- Best Crypto Lending Platforms
- Ledger vs Trezor
- BlockFi vs Celsius vs Hodlnaut
- Bitsgap review — A Crypto Trading Bot That Makes Easy Money
- Quadency Review- A Crypto Trading Bot Made For Professionals
- PrimeXBT Review | Leverage Trading, Fee and Covesting
- HaasOnline Review and Get a 10% discount
- The Idiots Guide to Margin Trading on Bitmex
- eToro Review | Trade Stocks, Crypto, ETFs, CFDs, and commodities
- Bitmex Advanced Margin Trading Guide
- Best Crypto APIs for Developers
- Best Blockchain Analysis Tools
- Crypto arbitrage guide: How to make money as a beginner
- Top Bitcoin Node Providers
- Best Crypto Charting Tool
- What are the best books to learn about Bitcoin?