Bitcoin is about to be connected to Polkadot, here is an article to understand the design and roadmap of PolkaBTC

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Bitcoin is about to be connected to Polkadot, here is an article to understand the design and roadmap of PolkaBTC

PolkaWorld

2020-10-20 08:39

本文约4683字，阅读全文需要约19分钟

Interlay will launch Polkadot's first trustless wrapped Bitcoin, PolkaBTC.

Editor's Note: This article comes fromPolkaWorld（ID：gh_6c4c2038ddba）, reprinted by Odaily with authorization.

Editor's Note: This article comes from

, reprinted by Odaily with authorization.

In early 2021, Interlay will launch Polkadot's first trustless wrapped Bitcoin, PolkaBTC, which is a key step for Polkadot towards a truly interoperable ecosystem.

Interlay previously published a detailed technical specification [1] and an ongoing PoC implementation [2]. After the successful pilot project, Interlay is now stepping up efforts to complete the BTC parachain in the first quarter of 2021, and this project has also received follow-up funding from the Web3 Foundation. The first Alpha testnet is planned for November 2020, with a functional beta launch in January 2021. You can sign up here to get early access and test PolkaBTC[3].

Once deployed, users will be able to mint 1:1 Bitcoin-backed assets on Polkadot, known as PolkaBTC, and use these assets in a wide range of applications, including decentralized exchanges, stablecoins, and lending protocols. Behind the scenes, BTC Parachain implements XCLAIM [4], the only financially trustless, permissionless, and censorship-free cross-chain framework backed by top-tier research [5].
What makes BTC Parachain unique is its strict commitment to trustlessness and openness:

Trustless: This bridge chain has no central authority. From the beginning, BTC Parachain will be run by a decentralized network of individuals, community members, and companies.

Open: In the spirit of permissionless systems like Bitcoin, anyone can participate in the operation of the bridge chain: Contrary to other methods, you don't need permission or any additional tokens to become a maintainer and start earning fees

As a holder of PolkaBTC, you have the following guarantees: you can exchange PolkaBTC for BTC at any time, or receive compensation from collateral funds at a favorable interest rate. If the vault misbehaves, you will be compensated from the vault's collateral and have a very lucrative trade between BTC and DOT. At launch, staked assets will be listed in the DOT. In the medium/long term, this could be extended to stablecoins or token pools to improve stability.
All in all, to trust the bridge chain, you just need to:

Please read on to better understand the design and security guarantees of BTC-Parachain.

route map

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route map

The first Alpha testnet is planned for November 2020, with a feature-ready Beta testnet launching in January 2021. Once the audit of the codebase is complete in February 2021, and parachains are enabled on Polkadot and Kusama, the BTC Parachain will go live: first on Kusama, then on Polkadot mainnet.https://forms.gle/JrNBD6Pe1F5QAg4z8[6]

Register here to get early access to PolkaBTC and be the first to test the first truly decentralized cross-chain bridge chain!

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plan integration
The Interlay team has already started working with teams building on Polkadot to gain early access to PolkaBTC:
Acala and Interlay are exploring different staking scenarios between Acala's aUSD stablecoin and PolkaBTC
Larminar is exploring a partnership with Interlay to provide cross-chain liquidity to the Polkadot ecosystem
Plasm Network is offering PolkaBTC for its highly scalable DAPP
Equilibrium[7] is planning to provide PolkaBTC for the cross-chain DeFi market
Edgeware Wants to Power PolkaBTC in Its WASM Smart Contracts
Moonbeam (developed by PureStake) plans to use PolkaBTC with its Ethereum-compatible smart contract platform

If you are building a project on Polkadot and want to integrate with PolkaBTC, please visit https://www.polkabtc.io/[9] or email at polkabtc@interlay.io[10].

design

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design

PolkaBTC makes so-called cryptocurrency-backed assets useful: BTC is locked on Bitcoin, and PolkaBTC is unlocked 1:1 by the backing asset on Polkadot. PolkaBTC can be used like any native asset in the Polkadot ecosystem. That is, using XCMP/SPREE, PolkaBTC can be easily transferred to other parachains.

Vaults Vaults: Intermediaries Without Licensing and Guarantees

An important component of BTC-Parachain is Vaults. Vaults are trustless and vouchable intermediaries that ensure Bitcoins remain locked on the Bitcoin network while PolkaBTC exists. Any user can become a vault by providing DOT collateral to secure BTC. This means that, as a user, you are free to choose any vault you like, or to be your own. If you want to be extra cautious, you don't have to trust anyone.

The correct behavior of the vault is enforced by the BTC Parachain. Specifically, the vault must attest to the correct behavior of BTC Relay, a Bitcoin SPV client implemented directly on Polkadot. If a vault tries to steal BTC, BTC Parachain will detect this: the vault will lose its staked DOTs and the user will be compensated (preferential interest rate).

Staked Relayers: Staying Safe and Alive

Staked Relayers monitor both Bitcoin and BTC Parachain, and ensure that the BTC relay is up to date with the Bitcoin main chain (by submitting Bitcoin block headers to the BTC Parachain). In the event of a major attack on Bitcoin or the BTC Parachain, Staked Relayers can vote to block the bridge chain until the issue is resolved. Note: The BTC relay has a self-healing feature that automatically detects and recovers from Bitcoin forks.

Users: Issue, trade and redeem PolkaBTC
You only need (i) BTC and (i) a small amount of DOT to pay the transaction fee, and you can mint PolkaBTC yourself:
Issuance (minting): PolkaBTC is created on the BTC Parachain by locking BTC with a vault. To stake your PolkaBTC, you can either submit a BTC payment proof yourself, or simply use Interlay's monitoring service to do it automatically.

Exchange: To exchange PolkaBTC for an equal amount of BTC, you burn PolkaBTC tokens on the BTC Parachain. Then, a vault (chosen by you or automatically assigned by the bridge) sends the BTC to your bitcoin address. If a vault tries to misbehave, its staked DOTs are slashed. As a user, you can decide to try again with another vault, or be reimbursed in DOT, including damage rewards for inconvenience.

PolkaBTC can be used on Polkadot indefinitely (no expiration date) and can be redeemed for BTC at any point in time. To use PolkaBTC on Polkadot, you don't even need a Bitcoin wallet until you decide to exchange PolkaBTC for native Bitcoin.

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About Interlay

PolkaBTC（https://polkabtc.io/Interlay envisions a future where permissionless and permissionless blockchains, regardless of design and purpose, can seamlessly connect and interact. From trustless lending to decentralized derivatives and exchanges, users should have access to their favorite digital currencies and financial products on any blockchain platform.

XOpts（https://xopts.io/Interlay is building cross-chain infrastructure and DeFi products, backed by top research:

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reference link

texthttps://interlay.gitlab.io/polkabtc-spec/

texthttps://github.com/interlay/BTC-Parachain

[3] PolkaBTC: https://forms.gle/7s1yGG3xEKyLhYnV7

[4] XCLAIM: https://xclaim.io/

texthttps://ieeexplore.ieee.org/document/8835387

[6] https://forms.gle/JrNBD6Pe1F5QAg4z8: https://forms.gle/JrNBD6Pe1F5QAg4z8

[7] Equilibrium: https://equilibrium.io/en/

[8] Chorus One: https://chorus.one/

[9] https://www.polkabtc.io/: https://www.polkabtc.io/