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tBTC (TBTC) is a tokenized version of Bitcoin (BTC) on the Ethereum blockchain, enabling Bitcoin holders to access Ethereum's decentralized finance (DeFi) services, smart contracts, and dApps. Launched by the Keep Network, tBTC operates as a smart contract, holding an equivalent value of Bitcoin in a secure custody arrangement. Users can deposit Bitcoin and receive tBTC tokens in return, which can be used within the Ethereum ecosystem. By bridging the two largest blockchain networks, tBTC enhances interoperability, expanding the utility of both Bitcoin and Ethereum for users and developers alike. This innovative solution allows users to maintain their Bitcoin holdings while participating in DeFi, lending, borrowing, and yield farming opportunities on the Ethereum network.
tBTC is a tokenized version of Bitcoin (BTC) on the Ethereum blockchain, allowing users to utilize Bitcoin within the Ethereum ecosystem. By wrapping Bitcoin, tBTC enables access to Ethereum's smart contracts, decentralized applications (dApps), and DeFi services, expanding the utility and interoperability of both networks.
tBTC operates as a smart contract on the Ethereum blockchain, holding an equivalent value of Bitcoin in a secure custody arrangement. Users can deposit Bitcoin and receive tBTC tokens in return, which can be used in Ethereum's DeFi ecosystem. When users want to redeem their tBTC for Bitcoin, the smart contract releases the corresponding Bitcoin from custody.
tBTC allows Bitcoin holders to access Ethereum's DeFi services, such as lending, borrowing, and yield farming, without selling their Bitcoin. This enables users to maintain their Bitcoin holdings while participating in the Ethereum ecosystem, expanding the utility and interoperability of both networks.
tBTC can be earned in the Bitcoin.com Wallet or on the Verse DEX by staking Bitcoin.com's utility token, VERSE. Usually, to obtain tBTC, users deposit Bitcoin into a tBTC smart contract, which then issues an equivalent value of tBTC tokens. Users can acquire tBTC through various platforms, such as decentralized exchanges (DEXs) or specialized services like Threshold Network's tBTC Bridge.
To store tBTC securely, use a reputable Ethereum-compatible wallet that supports ERC-20 tokens, such as Bitcoin.com Wallet, MetaMask, or a hardware wallet like Ledger or Trezor. This ensures secure storage and easy access to your tBTC tokens.
tBTC and Wrapped Bitcoin (WBTC) are both tokenized versions of Bitcoin on the Ethereum blockchain, but they differ in their custody arrangements. tBTC uses a decentralized custody model, while WBTC relies on centralized custodians. This difference impacts security, decentralization, and trust assumptions for each tokenized Bitcoin variant.
tBTC's value is tied to the value of Bitcoin, but its utility within the Ethereum ecosystem can make it an attractive option for users seeking to access DeFi services. However, as with any investment, it's essential to do your research and consider the market's volatility before making a decision.
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