What is tBTC?

tBTC is a decentralized wrapped Bitcoin that is fully backed by the main-net Bitcoin at a 1:1 ratio. It allows users to unlock Bitcoin's value for various purposes, such as borrowing, lending, minting stablecoins, and providing liquidity, without relying on centralized intermediaries. Instead, it utilizes a network of randomly selected operators who run nodes on the Threshold Network, employing threshold cryptography for enhanced security of deposited Bitcoin.

The Threshold Network was formed by merging the NuCypher and Keep networks and provides a range of threshold cryptography services designed for web3 applications. The governance structure is managed through a decentralized autonomous organization (DAO). Key offerings include Threshold Access Control (TACo) for encrypted data sharing, tBTC v2 as a decentralized Bitcoin-to-Ethereum asset bridge, and thUSD, an overcollateralized stablecoin utilizing ETH and tBTC as collateral.