TeleBTC: Trustless Wrapped Bitcoin
Mahyar Daneshpajooh, Niusha Moshrefi, Mahdi Darabi, Sina Hashemi,, Mehrafarin Kazemi

TL;DR
TeleBTC introduces a decentralized, trust-minimized protocol for wrapping Bitcoin on programmable blockchains, eliminating external validators and reducing costs through innovative light client bridge techniques.
Contribution
The paper presents a novel decentralized wrapping protocol for Bitcoin that leverages light client bridges and economic incentives, improving security and reducing complexity.
Findings
Achieves secure wrapping of BTC without external validators
Reduces operational costs of light client bridges significantly
Enables seamless transfer and unwrapping of BTC across blockchains
Abstract
This paper introduces TeleBTC, a fully decentralized protocol designed to wrap Bitcoin (BTC) on programmable blockchains. The creation of a decentralized wrapped BTC presents challenges due to the non-programmable nature of Bitcoin, making it difficult to custody BTCs in a decentralized way. Existing solutions have addressed this challenge by introducing an external layer of validators who take custody of users' BTCs. However, the security and decentralization of this layer are inferior to the underlying blockchains on which wrapped BTC is built. Moreover, the process of joining or leaving for a validator has become overly complex and expensive. To overcome these limitations, we propose a novel approach that eliminates the need for such an external layer by leveraging the light client bridge protocol. Additionally, we employ economic mechanisms such as incentivization and slashing,…
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Taxonomy
TopicsBlockchain Technology Applications and Security · Peer-to-Peer Network Technologies · Caching and Content Delivery
