What is Avalanche Bridged BTC (Avalanche)?
Avalanche Bridged BTC (BTC.b) is an ERC20 token on the Avalanche blockchain that represents Bitcoin by securely bridging Bitcoin to the Avalanche ecosystem. It is created when Bitcoin is locked in a secure enclave and an equivalent token is minted on Avalanche, ensuring a one-to-one backing with actual Bitcoin. This design allows Bitcoin holders to access Avalanche’s ecosystem while maintaining the security and integrity of their original asset.
Avalanche Bridged BTC (Avalanche) goals
The purpose of Avalanche Bridged BTC is to enable Bitcoin holders to leverage the benefits of the Avalanche network, including access to a broad range of decentralized finance applications and faster transaction finality. It addresses the challenge of connecting two distinct blockchain networks by providing a secure method to convert Bitcoin into an Avalanche-compatible asset. By doing so, it opens opportunities for increased liquidity, novel yield strategies, and expanded participation in the growing DeFi space.
Avalanche Bridged BTC (Avalanche) fondamentals
Avalanche Bridged BTC is fully collateralized, as each token is backed by a corresponding amount of Bitcoin that has been securely locked. A burn mechanism is implemented when transferring tokens back to the Bitcoin network, where the tokens are destroyed in the unwrapping process. The supply is dynamic and directly linked to the volume of Bitcoin bridged, with key market parameters represented by variables such as 5033 BTC.B and $518054761.
Marketcap
$0.51805476B
Total number of Avalanche Bridged BTC (Avalanche)
5033 BTC.B
Avalanche Bridged BTC (Avalanche) technology
The technology behind Avalanche Bridged BTC involves a secure bridge that locks Bitcoin in a designated address and mints an equivalent ERC20 token on the Avalanche C-chain. Transaction processing is handled within a secure enclave that employs Intel SGX to protect private keys and ensure the integrity of the bridging operation. When users initiate a transfer back to Bitcoin, the unwrapping process burns the corresponding tokens on Avalanche, releasing the locked Bitcoin, all coordinated through a consensus mechanism among multiple validators.
Avalanche Bridged BTC (Avalanche) competitors
The project differentiates itself by integrating advanced security features like Intel SGX, which provides a tamper-proof environment for processing cross-chain transactions. Its multi-party validation system, which involves several independent nodes, enhances security and reliability beyond traditional bridging solutions. Moreover, the use of a dedicated wallet extension streamlines the bridging process and offers a more seamless user experience compared to competitors in the cross-chain space.
Avalanche Bridged BTC (Avalanche) price history
Frequently asked questions
Avalanche Bridged BTC is an ERC20 token on the Avalanche network that represents Bitcoin in a fully collateralized manner. Each token is backed by an equivalent amount of Bitcoin that is securely locked. This mechanism ensures that the token maintains its value and credibility in the ecosystem.
Users initiate the process by sending Bitcoin to a secure bridge address through a dedicated wallet extension. Once the Bitcoin transaction is confirmed, a secure enclave verifies the transfer without exposing any secret keys. An equivalent amount of BTC.b is then minted on the Avalanche network, allowing the asset to be used within the ecosystem.
When users want to convert BTC.b back to Bitcoin, they trigger an unwrapping process through a specific function call. This process burns the corresponding number of BTC.b tokens on Avalanche, effectively reducing the circulating supply. Following this, the locked Bitcoin is released back to the user on the Bitcoin network.
Intel SGX creates a secure, tamper-proof environment where all sensitive operations, such as key management and transaction validation, are performed. This ensures that secret keys remain protected and are never exposed outside the secure enclave. The use of this technology significantly bolsters the overall security and trust of the cross-chain transfer process.
The bridging functionality is exclusively available through a dedicated Core Wallet browser extension. This wallet is specially designed to handle the unique requirements of linking Bitcoin with the Avalanche network. Users are advised to use this specific extension to avoid any risks associated with other wallet applications.
A dynamic fee structure is implemented to cover the costs associated with processing transactions on both the Bitcoin and Avalanche networks. These fees help manage the variability in transaction costs and ensure that the bridge remains sustainable. Any surplus fees are accumulated into a pool to balance out fluctuations and maintain predictable fee levels for users.
Bridging Bitcoin allows users to tap into the scalable and low-cost environment of Avalanche, thereby gaining access to a variety of decentralized finance applications. It provides a new way to increase liquidity and diversify investment strategies by using a familiar asset in a different ecosystem. This interoperability opens up additional avenues for earning and yield optimization without compromising on the underlying security.
The multi-party validation system involves several independent validators that work together to authenticate cross-chain transactions. This consensus mechanism ensures that all transactions are rigorously checked before any tokens are minted or burned. It plays a critical role in maintaining the integrity and security of the entire bridging process.
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