tBTC
Crypto Overview
Purpose and Utility
tBTC is a decentralized protocol that allows Bitcoin holders to mint an ERC-20 token (tBTC) that represents their Bitcoin on the Ethereum blockchain. Each tBTC token is backed 1:1 by actual Bitcoin held in custody through a decentralized system. The primary purpose is to enable Bitcoin holders to participate in Ethereum's DeFi ecosystem while maintaining exposure to Bitcoin.
Business Model and Operations
The protocol operates through a decentralized network of signers who secure the deposited Bitcoin. Users deposit BTC and receive tBTC tokens in return, which can be redeemed back to BTC at any time. The protocol generates revenue through small minting and redemption fees.
Real-World Adoption
tBTC v2, launched in 2023, has seen growing adoption with millions in total value locked (TVL). The token is primarily used by Bitcoin holders seeking to access Ethereum-based applications while maintaining their Bitcoin backing.
Development Activity
The project is actively maintained by Threshold Network, formed from the merger of Keep Network and NuCypher. Regular updates and improvements to the protocol demonstrate ongoing development commitment.
Token Distribution
The token distribution is based on actual Bitcoin deposits, with no pre-mine or founder allocation for tBTC tokens specifically. The protocol is governed by Threshold's DAO, ensuring decentralized control.
Revenue Model
The protocol's revenue comes from legitimate service fees for minting and redemption, avoiding interest-based income or gambling mechanisms.
Crypto Impact
To assign a comfort level investing in tBTC 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 tBTC.
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.