2.2 Weaknesses of BTC-pegged Assets
The Trilemma Among Decentralization, Security, and Composability Under Various Non-Turing Complete two-way peg Mechanisms.
Last updated
The Trilemma Among Decentralization, Security, and Composability Under Various Non-Turing Complete two-way peg Mechanisms.
Last updated
To fully leverage BTC liquidity, numerous two-way peg solutions have emerged to facilitate the flow of BTC assets between the Bitcoin network and smart contract chains. However, existing two-way peg mechanisms face a trilemma among decentralization, security, and composability, making it challenging to achieve complete decentralization, high composability, and strong security for BTC-pegged assets.
wBTC - High Composability + Low Decentralization and Low Security
RBTC/LBTC - Low Composability + Low Decentralization and Low Security
sBTC - Low Composability + Relatively High Decentralization and Security
wBTC, RBTC, and LBTC rely on a single operator or a group of reputation-based consortiums to sign transactions, which introduces the risk of single points of failure or collusion. While Stacks' sBTC achieves a higher degree of decentralization with a set of permissionless and dynamically adjustable validators called "Stackers," it still faces the risk of collusion among Stackers.
satBTC - High Composability + High Decentralization and Security
SATPORT, based on its technological innovation, aims to address the aforementioned issues concerning non-smart contract chain BTC-pegged assets. It introduces a more secure and decentralized pegging of BTC, known as satBTC. SatBTC achieves a more balanced state among three core attributes. This technological breakthrough offers a more feasible solution for anchoring Bitcoin assets in non-smart contract chains, bearing significant historical and practical significance for the empowerment of Bitcoin assets.
