Bitcoin Association Switzerland (BAS) together with the involved companies, announced another way to use Bitcoin: tzBTC, a token on the Tezos blockchain backed 1–1 by Bitcoin.
With Bitcoin being the de facto reserve-currency of cryptocurrencies, tzBTC is one of the first examples of tokenization on Tezos which enables the use of the Tezos blockchain features with Bitcoin.
“The multi-signature (“multi-sig”) key management system of tzBTC enables a strongly trust-reduced setup with no central issuer as a single point of failure, while being fully transparent. The Bitcoin Association Switzerland acts as an overseer and coordinates with the keyholders. Protected by Swiss law and cryptography, we’ve found a practical balance between decentralization and usability.” — press-release says on the BAS website.
The governance mechanism of the tzBTC contract allows for the compliant and secure issuance of BTC-backed tokens on the Tezos blockchain. The various responsibilities are managed by several key stakeholders: the Association, Keyholders, Gatekeepers, and Users.
Three processes are involved in the tzBTC system: Initiating, Minting and Burning.
You can learn more about stakeholder roles and the processes in tzBTC Brief Overview
The launch of tzBTC is one of the first examples of tokenization and DeFi (decentralized finance) on Tezos. Blockchains enable us to expressively encode financial permissioning and governance rules in a publicly transparent way.
In the future, there will be a lot of work done in exploring novel mechanisms for governing, using, and transacting in wrapped assets on the Tezos blockchain.
To learn more about the tzBTC and get involved in the ecosystem visit https://tzbtc.io/
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