The new token tBTC should establish a connection between Ethereum and Bitcoin in the future. As tBTC writes on its own website, it is a decentralized, redeemable, Bitcoin-based ERC-20 token. So a token that is supposed to run on the Ethereum blockchain with a certain standard – ERC-20. Last year, Matt Lungo, the software developer, reported on Twitter about his work on the new project. On February 14 of this year, he announced that tBTC was live on the Ropsten test network.
TBTC superior to other projects?
TBTC is a project similar to the previously released Wrapped Bitcoin (WBTC) – WBTC started in early 2019. “Wrapped tokens follow the centralized model, but instead of relying solely on one institution, they are a consortium of Institutions that perform different roles in the network are instructed “, is quoted at tBTC from the wrapped token white paper. However, the new project should be superior to the wrapped tokens that are already on the market.
Software developer Matt Luongo criticized that WBTC & Co. could not yet properly implement the transfer between Bitcoin and Ethereum. “Bitcoiners want to be able to return to the Bitcoin blockchain. In order for the asset to be considered valid and theirs considered, they must be able to pay it out without trust, and a synthetic [Bitcoin] does not offer it,” says btc-echo .de the software engineer again. tBTC must maintain Bitcoin’s status as “hard money” and therefore be resistant to censorship, seizure, inflation and leverage. The token must also be redeemable: for each tBTC, a Bitcoin should be withdrawn from circulation and deposited. In addition, the whole thing, similar to Bitcoin, should run without intermediaries if possible.