Keep Network has published details of the second iteration of the least trusted bitcoin cryptocurrency protocol, tBTC.

In an April 11th blog post, Keep Network developer Evandro Saturnino outlined several changes the protocol is considering to address past security concerns.

The second iteration of tBTC is expected to require dealers to unlock only KEEP instead of KEEP and ETH, in addition to making changes to the wallet creation mechanism. The protocol allows users to encode their bitcoins for use on the Ethereum network.

While Saturnino notes that the changes “will provide a way to reduce the safety factor of permanent assets,” he warns of new risks associated with the proposed upgrades.

To compensate for the “small risk of tripping” as a result of the changes, Saturni uses security roofs to protect against malicious validations, describing the assemblers as “ideal for protecting tBTC v2 against fraud”.

TBTC works with ETH security on a network of blockchain validators and parties, each contributing to printing and backing up the asset, while monitoring activity on the blockchain. Saturnino explained:

“In this mission, tBTC has proven to be the first solution to introduce tBTC into the Ethereum network in a truly reliable and decentralized manner using the Keep Network infrastructure that is able to store and account for hidden data from itself.”
When a user submits a request to create a tBTC and a deposit guarantee, a randomly selected signature group creates a generic BTC wallet address for the user. Members of the Signature Group are drawn from a qualified pool of signers who have accepted the ETH pledge as collateral.

Compulsory ETH is an incentive to adapt the interests of signatories and can also be used to punish members for non-compliance. Signatories must commit 150% of the total ETH deposit as collateral in a similar mechanism to MakerDAO and the Dai Coin Stable System.

The developer acknowledged that the team has learned a lot since the second launch of tBTC mainnet in September 2020. Within days of its first launch in May 2020, the Keep protocol was deactivated shortly after an error in the recovery codes was detected. Saturnino added … that the protocol also encountered difficulties in expansion.

Despite support for the venture capital giant a16z and other big names, Keeps tBTC has failed to gain a foothold among DeFi users with just 1,293 tokens, according to CoinGecko.

According to DeFi Llama, existing Bitcoin token solutions have grown dramatically over the past year, with Wrapped BTC currently ranked as the second largest DeFi protocol at $ 8.7 billion. Competitive non-storage company renBTC has also raised $ 926 million in TVL and is currently ranked 27th among the best DeFi ventures.

Source: CoinTelegraph