With tBTC, a new revolutionary ERC-20 token sees the light of the crypto world. This token embeds Bitcoin in the Ethereum blockchain. The ERC-20 token is designed for decentralized finance (short: DeFi) applications and is intended to bridge different crypto ecosystems in the future.
The crypto company Thesis has announced the early launch of the ERC-20 token tBTC. The token coupled to Bitcoin runs on the Ethereum blockchain and is intended to act as a connecting element between Bitcoin and Ethereum.
The new token could also close a gap in the area of DeFi. As the demand for Bitcoin-backed loans increases, a number of crypto companies such as Blockfi, Compound, Genesis Global Trading and Blockchain.com have already developed solutions for the lending business with cryptocurrencies.
tBTC could offer another way for users to get cryptocurrency-backed loans. Project manager Matt Luongo said that some DeFi credit platforms have already promised token integration.
Users who want to have a tBTC token created must first apply for a Bitcoin wallet address in the network. The system then selects a number of signatories that generate a private and public key. The group of "Signers" then confirms to the Ethereum blockchain that the deposit has been processed. The tBTC tokens can then be created and sent to the Bitcoin holder's Ethereum Wallet.
The development of the protocol has already reached the code freeze phase. The codebase is therefore ready, now it is important to test the system for possible errors under real network conditions. As Matt Luongo confirmed to The Block, the mainnet could still be started in March 2020.
I believe that everyone who is a fan of the Chainlink (LINK) token will also see the benefits of this new ERC-20 token. It will definitely go into my portfolio when the network is launched in March.
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