Chain-key Bitcoin
Crypto Overview
Purpose and Utility
Chain-key Bitcoin (ckBTC) is a wrapped version of Bitcoin that operates on the Internet Computer blockchain. Created by DFINITY Foundation, it aims to provide Bitcoin functionality with faster transaction speeds and lower fees while maintaining the security properties of native Bitcoin.
Business Model
The system uses the Internet Computer's chain-key cryptography to create a trustless bridge between Bitcoin and the Internet Computer ecosystem. When users deposit BTC, an equivalent amount of ckBTC is minted on the Internet Computer. The original BTC remains secured in a threshold ECDSA signing protocol.
Real-World Adoption
Since its launch in 2023, ckBTC has seen growing adoption within the Internet Computer ecosystem. It is being used in various DeFi applications and as a medium of exchange. The protocol maintains transparency through its open-source code and on-chain verification of Bitcoin reserves.
Platform Development
The development activity is robust, with regular updates and improvements to the protocol. The Internet Computer team maintains active development and has implemented several security audits.
Token Distribution
ckBTC is created only when actual Bitcoin is deposited, maintaining a 1:1 backing ratio. There is no pre-mine or founder allocation since it's a wrapped asset.
Crypto Impact
To assign a comfort level investing in Chain-key Bitcoin from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Chain-key Bitcoin.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.