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tzBTC 2.0 offers enhanced accessibility and cost-effectiveness for users and decentralized applications on the Tezos blockchain.
Improvements in Gatekeeper optimization, Keyholder automation, and ongoing commitment to transparency and compliance.
tzBTC 2.0 will be unveiled for the Tezos blockchain by the end of April 2024. Building upon the success of its predecessor, tzBTC 2.0 offers enhanced accessibility and cost-effectiveness ushering in a new era for the intersection of Bitcoin and Tezos.
Launched in April 2020, tzBTC brought Bitcoin (BTC) to Tezos with a vision to be transparent, stable, and compliant. As one of the Tezos ecosystem’s foundational components, the original tzBTC paved the way for innovation and growth within the Tezos community.
A “wrapped” token refers to the tokenization of physical or digital assets on a blockchain, such as fiat currencies, commodities, or cryptocurrencies like Bitcoin or Ether. In the case of tzBTC, it represents Bitcoin and is maintained on the Tezos blockchain through a smart contract, ensuring parity with the underlying asset via Keyholders and an independent auditor. This enables seamless BTC transactions and financial use-cases on Tezos.
Since its inception, tzBTC enabled users and decentralized applications to transact directly in BTC, combining Tezos’ blockchain performance with Bitcoin’s liquidity and stability. More than 1,000 BTC have been wrapped, with a current market capitalization of over $60.9 million.
However, limitations in accessibility and cost-effectiveness prompted the need for evolution. This enhanced iteration builds upon the original vision, offering significant improvements in both areas.
The original tzBTC entrusted bitcoin custody to a group of trusted institutions, known as Keyholders, responsible for managing tzBTC’s supply and maintaining its 1:1 peg. Gatekeepers, authorized by Keyholders, ensure compliance by conducting KYC and AML checks for minting or burning tzBTC, achieving a transparent and compliant wrapped bitcoin on Tezos. Now, tzBTC comes with these upgrades:
Gatekeeper Optimization: Simplified minting and burning processes through an automated self-service, reducing transaction times and associated costs.
Keyholder Automation and Fee Elimination: Leveraging Acurast execution environment for the automation of minting and burning, reducing manual intervention and associated expenses. This automation enables Keyholders to offer their services for a flat yearly fee, which will be subsidized by the Tezos Foundation.
Maintaining Transparency and Compliance: Retaining the original vision of transparency and compliance while streamlining processes for improved user experience.
In March 2024, crucial advancements are underway for tzBTC 2.0, including Gatekeeper and KYC automation in collaboration with LEXR Finance, ongoing Keyholder automation, and contracting processes for Keyholders and Gatekeepers. Looking ahead to Q2 2024, the team plans to launch Multichain tzBTC, aiming to extend the reach and functionality of the token across multiple blockchains.
With the introduction of tzBTC 2.0, Tezos continues to push the boundaries of innovation in the blockchain space and reaffirms Tezos’ commitment to empowering users and fostering growth within the ecosystem.
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