Under the leadership of the Bitcoin Association Switzerland and the Tezos Foundation, a decentralized consortium, have brought Bitcoin (BTC) into the Tezos ecosyste; enabling Bitcoin-supported use cases on the Tezos blockchain.
Bitcoin and Tezos – liquidity meets application
The goal is to combine the liquidity of the largest and oldest crypto currency with the efficiency of a new generatin blockchain. The timing of the launch of this project sends out a strong signal and impressively demonstrates the potential of blockchain technology – despite the Corona crisis, which has also affected Crypto Valley and its start-ups, as a survey by the Swiss Block Chain Federation last week details.
(“TZBTC”) – Bitcoin can be used in Tezos Smart Contracts
TzBTC brings the liquidity and the most proven crypto currency Bitcoin (BTC) into the Tezos ecosystem, enabling Bitcoin supported use cases on the Tezos blockchain. Developers on Tezos can use tzBTC to develop novel financial applications on the Tezos blockchain.
A “wrapped” token refers to the blockchain-based tokenization of a physical asset such as a fiat currency (US dollar) or commodity (gold) or other digital asset such as Bitcoin (BTC) or Ethereum (ETH). Packaged tokens are controlled and stored in a process that are combined with the increase (minting) and/or decrease (burning) of the circulating supply to ensure parity with the underlying asset. Among other things, wrapped tokens are used primarily in the DeFi area.
As an asset on Tezos, tzBTC enables Tezos-based applications to use BTC with the full performance of Tezos Smart Contracts. tzBTC is implemented on Tezos with the asset standard FA 1.2.
Large number of renowned companies from Crypto Valley involved in the project
Almost all of the companies involved are from Switzerland – a rendezvous for the token industry in Crypto Valley, which includes:
- Bitcoin Suisse, Bity, Sygnum and Taurus will act as “gatekeepers” for the conversion of Bitcoin into TZBTC and KYC & AML.
- Inacta, Lexr, Swiss Crypto Token and Taurus and Woorton are responsible as “keyholders” for custody and supply management. The network is open to other players.
- The Bitcoin Association Switzerland acts as an independent observer and monitors the keyholders to ensure the integrity of the tzBTC system.
The Bitcoin-based token on the Tezos platform is remarkable for four reasons:
- Never before has such a number of renowned companies from the Crypto Valley jointly launched a decentralized project of this magnitude.
The blockchain industry in Switzerland is not just a cluster of loners, but is generating cooperation and living the touted collaboration.
- The TZBTC opens up new possibilities for applications in the field of Decentralized Finance with Tezos, an advanced bloc chain protocol of the latest generation.
- Bitcoin can now be used as a means of payment within the Tezos network.
As a third-generation blockchain platform, Tezos differs in many ways from its predecessors such as Bitcoin and Ethereum. Tezos has a live upgrade process and a governance mechanism that enables long-term use cases and minimizes platform risks. The Tezos Foundation is a Swiss non-profit organization based in Zug and is the only large Blockchain foundation that is audited by one of the Big 4 auditors. The mission of the Tezos Foundation is to support the long-term success of the Tezos Protocol and its ecosystem. By financing projects conceived by scientists, researchers, developers, entrepreneurs and enthusiasts, the Foundation promotes decentralized development and strong participation. One such project is the TZBTC.
*Originally published in German at CVJ.ch