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Bitcoin-backed tBTC launch efforts begin

tBTC is one of its kind project that has recently been released on the Ethereum testnet. The Cross-chain group developed the project and ever since the conception of the idea, their agile team has been working constantly to extend the research as well as the implementation of this new kind of cross-chain architecture.  tBTC is pegged to Bitcoin and after its launch, the next 15 days will be taken to launch its technical infrastructure in association with close to 40 crypto projects including the likes of Compound, MakerDAO, and Uniswap. 

As the ERC-20 token is backed by Bitcoin, the supply of it will be dependent on bitcoin’s supply. Its protocol is used to generate a bitcoin-backed ERC-20 token. Its protocol is the product of an association between Keep Network and Summa that enables the entire cross-chain interaction with their tools. The role of signers in the entire scheme of things is important as signers would not just generate but also manage and control smart contracts that accept bitcoin deposits and eventually mint these tokens. KEEP which is the network platform token apparently will also host a stake drop event in which any individual could stake ETH in return for KEEP tokens through which they can become the signers of the protocol.

The entire system of tBTC will see its public use from May 11th wherein the deployed DApp can be used to deposit limited funds considering it is a new system. The users also can use the DApp to create a new bitcoin wallet address and deposit all their bitcoins. They can later get it minted into the tBTC wallet for their Ethereum wallet. They also have the option of redeeming the bitcoin. 

The compound has already consolidated with tBTC on the Ropsten. Luongo from Compound believes that with this there might be a day when he could borrow $ loans with tBTC as collateral with the lending protocol. Maker DAO last week voted for tBTC to be whitelisted and also grant the price oracle of ETH/BTC implying that Maker will get to administer the price feed for tBTC. Once that gets approved, it will be an evolution as it brings back bitcoin collateral to MakerDAO.

The best thing about tBTC is that it is resistant to seizures, inflation, and censorships.

Image Source – Forbes

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