Decentralized Bridges in DeFi: An Exclusive Interview with Threshold Network’s Co-Founder

tBTC – The Bitcoin Standard for DeFi

Andy Pickering recently sat down with Callan, the Co-Founder of Threshold Labs and the managing team behind Threshold Network’s tBTC. During their conversation, they delved into the significance of tBTC in the DeFi landscape.

Threshold Network is a decentralized infrastructure protocol that leverages threshold cryptography to provide privacy and access control services on public blockchains. It was formed through the merger of two projects, Keep and NuCypher, with the aim of enabling secure and decentralized custody and data privacy. One of its core offerings is tBTC, a decentralized bridge that allows users to bring their Bitcoin onto Ethereum and other EVM-compatible networks in the form of an ERC-20 token that is fully backed 1:1 by BTC.

In this episode, Callan explains that tBTC addresses the limitations of custodial wrapped Bitcoin products, such as WBTC, which rely on centralized entities to hold users’ BTC. Instead, tBTC utilizes a network of randomly selected node operators that collectively manage custody through threshold signature schemes. This structure ensures that no single party can access or move the underlying BTC, thereby enhancing security and decentralization.

The latest version of tBTC, v2, introduces a scalable and permissionless model, progressively shifting control from human intermediaries to protocol-based guarantees.

Source: bravenewcoin.com