There are some misconceptions regarding bridgeless #ICP <> #BTC integration
the 'real' Bitcoin tokens of ckBTC are not "held" by the "users" on the Bitcoin blockchain
But held by a smart contract canister on #ICP with a Bitcoin address. 🧵
the 'real' Bitcoin tokens of ckBTC are not "held" by the "users" on the Bitcoin blockchain
But held by a smart contract canister on #ICP with a Bitcoin address. 🧵
In simple words, with direct integration
Smart Contracts of Internet Computer Protocol can create a Bitcoin wallet, hold real bitcoins, or sign txns to send bitcoin on BTC network.
Smart Contracts of Internet Computer Protocol can create a Bitcoin wallet, hold real bitcoins, or sign txns to send bitcoin on BTC network.
By holding real Bitcoin tokens, canisters will issue a wrapped version of it on #ICP, which is called ckBTC
ckBTC being an ICP token gets the superpowers of ICP smart contracts.
Unlimited Programmable Opportunities arise with ckBTC because of #ICP's infinitely scalable smart contract canisters.
Unlimited Programmable Opportunities arise with ckBTC because of #ICP's infinitely scalable smart contract canisters.
If Canister holds the Bitcoins, where are the private keys stored?
The keys are secretly shared among the nodes of #ICP sub~network in a distributed manner.
The keys are secretly shared among the nodes of #ICP sub~network in a distributed manner.
This is possible because of an extension to chain key cryptography - the innovation powering #ICP blockchain.
Therefore a Canister holds the real BTC tokens "on your behalf" on the Internet Computer Blockchain
Thus these Bitcoins get the same security as the Subnetwork where the Canister is hosted
Thus these Bitcoins get the same security as the Subnetwork where the Canister is hosted
Currently, the subnet has only 28 nodes out of which only 10 are required to come together, reach a consensus, and sign a BTC txn.
Think of canisters like the boxes where you can store the bitcoins.
And since canisters are a smart contract,
they can autonomously and securely maintain and authorize the use of ckBTC minted on the ICP network pegged to real #BTC held by a Canister.
And since canisters are a smart contract,
they can autonomously and securely maintain and authorize the use of ckBTC minted on the ICP network pegged to real #BTC held by a Canister.
The innovation here is eliminating the need for third parties such as bridges to hold the bitcoin tokens for you.
Instead, the custody and issuance of wrapped Bitcoin (ckBTC) are automated with #ICP smart contracts.
Instead, the custody and issuance of wrapped Bitcoin (ckBTC) are automated with #ICP smart contracts.
That doesn't make this feature bulletproof.
But it does significantly increase the security and improves the multi-chain user experience.
But it does significantly increase the security and improves the multi-chain user experience.
https://twitter.com/lysergin33/status/1549383677636902914?s=20
My previous thread on BTC integration
Published July 2022 - a bit outdated now due to iterations done to the protocol by DFINITY
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