• Threshold Network is now working with cross-chain token protocol Wormhole in an effort that hopes to allow the easy movement of a tokenized representation of bitcoin (BTC) to some twenty blockchain ecosystems.
• The Wormhole integration will allow tBTC to be transferred to both Ethereum Virtual Machine (EVM) chains, such as Arbitrum, Optimism and Polygon, and non-EVM chains like Solana, Aptos, Sui, and Cosmos.
• The Wormhole bridging plan relies upon a new method for bridging ERC-20 tokens that allows the efficient deployment of capital to Ethereum sidechains.
Threshold Network Bridges Bitcoin To 20 Blockchains
Threshold Network is now collaborating with cross-chain token protocol Wormhole in order to enable the seamless migration of a tokenized version of Bitcoin (BTC) into twenty different blockchain ecosystems. This integration will allow tBTC tokens to be moved onto both Ethereum Virtual Machine (EVM) networks like Arbitrum, Optimism and Polygon as well as non-EVM networks such as Solana, Aptos, Sui and Cosmos.
New Method For Bridging ERC-20 Tokens
The Wormhole bridging plan makes use of a brand new method for linking ERC-20 tokens which allows for increased efficiency when deploying capital onto Ethereum sidechains. Instead of creating wrapped tokens for every chain which can take up valuable liquidity which could otherwise be used elsewhere, tBTC tokens are created on the Ethereum network itself before being deployed on each respective chain. This keeps the total supply of tBTC intact while also managing risk within local ecosystems.
Centralization Risk Of Wrapped Bitcoin
In order for users to transfer Bitcoin between different networks prior this integration they would need to rely on centralized bridges thus increasing risks for token holders due to exploits worth billions occurring in 2022. These bridges are essentially blockchain tools allowing the transfer of tokens between different blockchains but come with their own security issues which needed addressing in light of these events.
Benefits Of The Integration
This integration provides users with several advantages over other methods including that it enables them access into multiple DeFi ecosystems while also allowing them full control over their funds through native support without having to rely on third parties or custodianships. Additionally because no wrapping or unwrapping is required there will also be less pressure on network fees than previously experienced when using other methods for transferring Bitcoin between different blockchains.
The partnership between Threshold Network and Wormhole is expected revolutionize how users move funds across multiple blockchains by providing them with an alternative option which does not require custodianship or centralized bridges thus reducing overall risk associated with moving funds from one ecosystem into another while also enabling users access into multiple DeFi platforms at once without any additional costs incurred from wrapping/unwrapping processes..