tBTC, an Ethereum (ETH)-based token that’s pegged to Bitcoin (BTC), the flagship cryptocurrency, is preparing for its public launch.
During the course of the next two weeks, the tBTC project is planning to introduce its technical infrastructure with the help of more than 40 digital asset projects – which include leading decentralized finance (DeFi) protocols MakerDAO, Compound, and Uniswap.
The ERC-20 compliant token is fully collateralized by BTC, which means its supply is pegged to Bitcoin’s circulating supply.
The tBTC protocol has been developed through a collaborative effort between Summa, a platform that offers software for cross-chain communication, and the Keep Network, an Ethereum-powered solution for privately and securely storing data off-chain (off the blockchain).
On April 27, 2020, the developers of tBTC introduced the network’s native token, KEEP, which has to take the role of a “signer.”
Signers are tasked with issuing and managing smart contracts that accept deposits in BTC and then create tBTC tokens. The tBTC development team also published the smart contracts needed for holding and staking digital assets.
Signers may include employees, affiliates, and project partners. They also include private buyers such as VC firm Andreessen Horowitz (a16z) and Polychain Capital.
Matt Luongo, the project lead at tBTC, claims that about 80 to 100 stakers will be prepared to sign when tBTC’s officially launches.
In June 2020, Keep will conduct an stakedrop event, which will allow people to stake their Ether in order to earn Keep tokens and also become the tBTC protocol’s signers.
The project will release the dashboard for the tBTC (decentralized application) dApp and other tech infrastructure.
On May 11, 2020, the entire tBTC platform will be accessible to the general public.
People will have the option of depositing a limited amount of assets into the dApp. Luongo recommends “taking it slow,” as it will be a brand new system that hasn’t been thoroughly tested over an extended period of time.
tBTC allows users to create a Bitcoin wallet through their tBTC dApp, deposit their BTC to that particular address, and then receive newly minted tBTC tokens, which are sent to their Ethereum wallets. If users want to redeem their Bitcoins, they can do so via the dApp, and then they can send the funds to any crypto wallet address.