Review of the TBTC, BTCB, SBTC (IBTC). The main advantages and disadvantages
Lord
Greetings to the entire community of the KEEP Network project, crypto enthusiasts and just good people).
We wanted to speak a little and make a small contribution to the coverage of an interesting topic of bitcoin tokenization for everyone.
And the article will focus on such well-known coins (TBTC, BTCB, SBTC(and IBTC).
The article will provide a brief information about each of the projects and their direct comparison.
The topic of Bitcoin tokenization and its transfer to other blockchains began to develop quite recently.
The main reason for Bitcoin tokenization is to add new functionality to the coin that was not originally intended, such as compatibility with the Ethereum DeFi ecosystem, increased transaction speed, privacy, and coin interchangeability.
After all, of all cryptocurrencies, Bitcoin is considered to be the most solid and stable cryptocurrency, so it would be very useful to combine this coin with DeFi and use it for example in the banking sectors and so on.
Let's talk a little about these projects:
tBTC is an NFT token that is created during the user's deposit request. TDT is a token of the ERC-721 standard, which is the equivalent of TBTC. It represents the ownership of a UTXO deposit in the Bitcoin blockchain.
The tBTC system itself allows users to "issue" TBTC by depositing Bitcoin to an address that is created and controlled by a group of scribes.
The protection of the average user in the project is such that the subscribers must deposit the equivalent in Ethereum of a higher cost (150% of the deposit).
TBTC deposits can be blocked and unblocked. A blocked deposit can only be redeemed by the owner of the deposit with the appropriate TDT. Each TDT is unique to the individual deposit that creates it, and has the exclusive right to redeem this deposit for up to 6 months.
After the deposit is fully confirmed by SPV Relay, the TDT owner can request repayment. After paying the fees, it disposes of UTXO, which corresponds to a deposit in the Bitcoin network.
The main advantage of tBTC over similar projects is a more thoughtful trust system.
The project almost completely excludes the human factor and all security is based on mathematics and the laws of cryptography.
And at the same time, users of the system will not have to pass KYC and AML.
The disadvantage, in our opinion, is the limited number of tokens in 1 transaction, namely, the maximum is 1 tBTC.
BTCB is a tokenized Bitcoin in the Binance chain that is fully supported by its own Bitcoin.
The Binance exchange acts as a guarantor. BTCB is 100% secured with the same amount of BTC in the public reserve address. This address is completely transparent to any auditor at any time.
BTCB is an opportunity to trade other assets on the decentralized exchange Binance (DEX) Binance DEX against Bitcoin.
The main advantage of the BTCB offer is that, obviously, it makes available to Binance DEX traders a lot of coins that have their own blockchains and are not native to the Binance chain. With the increased number of tokens available on Binance DEX, there should be an increase in trading volume and liquidity, which will further increase the usefulness of Binance DEX.
The main disadvantage of this project is that this approach is more centralized than similar projects and threatens the entire confidentiality of operations.
SBTC / IBTC are synthetic assets built on the Synthetix platform.
Synthesizers are realized as ERC-20 tokens and are linked to any cryptocurrencies, real assets, and indexes.
BTC / BTC are supported by the Synthetic (SN) token, which has a rate of 750%, which provides sufficient security to absorb large price shocks. Assets on Synthetix are assigned an exchange rate through the price streams provided by oracle, and can be exchanged in the Synthetix exchange app.There are trading pairs for SBTC with other synthesizers such as SETH, SUSD, SEUR, and even with precious metal-linked tokens such as SXAU (gold) and SXAG (silver). Synthetic also allows you to create synthesizers that are inversely proportional to the asset they track. IBTC, for example, tracks the reverse price of Bitcoins and can be used to open a short position in Bitcoins by simply buying them.
The main disadvantage of synthesizers is that they are more unreliable compared to TBTC or BTCB, due to the fact that they do not require ownership of the base asset.
Thank you for your attention!
Resources that were used writing the article:
https://docs.keep.network/tbtc/index.pdf
https://medium.com/@yurataro2055/btc-%D0%BD%D0%B0-ethereum-tbtc-vs-wbtc-cd039b848270
https://2bitcoins.ru/binance-anonsirovala-token-btcb/
https://inp.one/cryptoworld/bitcoin-bep2
https://blog.synthetix.io/q1-release-sbtc-and-more/
https://medium.com/coinmonks/tokenized-bitcoin-comparison-of-different-approaches-18d30eea8c76
https://www.rbc.ru/crypto/news/5e91a6d29a79473c6e4052c0