iBTC Support

We’re excited to announce that Dfns now supports iBTC, the decentralized wrapped Bitcoin protocol formerly known as dlcBTC. This integration takes Bitcoin’s utility to new heights, enabling seamless interoperability with blockchain ecosystems and unlocking new possibilities for DeFi.

What is iBTC and why wrap Bitcoin?

iBTC is a decentralized protocol that lets users bring Bitcoin into other ecosystems. Unlike centralized solutions that depend on custodial entities, iBTC uses Bitcoin's Layer 1 to ensure a secure, trustless way to wrap and unwrap Bitcoin by using Discreet Log Contracts (DLCs). In a recent episode of Unchained, Aki Balogh, CEO of iBTC, discussed with Laura Shin how DLCs can transform Bitcoin's role in DeFi by enabling non-custodial Bitcoin yield solutions.

With WBTC transitioning to a joint venture between BitGo, Justin Sun, and the Tron ecosystem, concerns about centralization have grown. iBTC addresses these concerns by utilizing a network of merchants and attesters to support and secure the iBTC network. Attesters ensure that wrapped Bitcoin remains secure and that only the depositor can redeem the locked Bitcoin. By increasing the number of attesters and merchants, iBTC boosts security and reduces the risk of central points of failure. This not only opens up new possibilities for Bitcoin in the DeFi space but also ensures that users maintain control over their assets.

The protocol also plans to expand its use across multiple blockchain ecosystems, currently live on Arbitrum, Ethereum, Base, and OP and coming to chains like BNB and Avalanche soon.

Why iBTC matters as an asset type

iBTC stands out as a leader in decentralized wrapped Bitcoin thanks to its blend of innovation and usability. Here’s why it’s special:

• Decentralized control: iBTC removes the need for centralized custodians, giving users full control of their Bitcoin while enabling cross-chain functionality.
• Strong security: Built on Taproot and FROST signatures, iBTC offers top-notch security, scalability, and efficiency for modern blockchain needs.
• Theft-proof: iBTC ensures theft-proofing with pre-signed transactions that lock Bitcoin to return only to the owner’s wallet.
• Cost and speed efficiency: Taproot and FROST optimize transactions, lowering costs and speeding up processes for a smoother user experience.
• Cross-chain interoperability: iBTC connects Bitcoin to other ecosystems by leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
• Industry momentum: With growing adoption and partnerships, iBTC is becoming a cornerstone for secure, decentralized Bitcoin applications.
• Expanding ecosystem: iBTC is rapidly integrating into various DeFi platforms, creating a thriving network of projects and use cases.

Send and receive iBTC on MPC wallets

Our integration with iBTC leverages Bitcoin Taproot and our FROST (Flexible Round-Optimized Schnorr Threshold) signatures to streamline and secure the wrapping and unwrapping of Bitcoin.

• Bitcoin Taproot: Taproot improves Bitcoin's privacy and efficiency by enabling advanced smart contract features while keeping transaction costs low. iBTC uses Taproot to create secure multi-signature transactions, forming the foundation of its trustless design for seamless interactions between Bitcoin and other ecosystems.
• FROST signatures: FROST is a modern threshold signature scheme optimized for Bitcoin’s Taproot. It enhances security and efficiency by reducing communication overhead and improving scalability in multi-party signing operations. Dfns has implemented and open-sourced FROST in Rust under the Linux Foundation (project Lockness). It’s the fastest implementation available. Learn more here.
• Dfns Integration: Through Dfns' wallet platform, developers can easily manage iBTC balances, execute transfers, and interact with smart contracts across Ethereum and EVM ecosystems. Our GenerateSignature API simplifies cryptographic processes, making it straightforward to integrate iBTC into applications.

By combining Taproot and FROST, iBTC creates a trust-minimised and decentralized environment for Bitcoin holders to access DeFi protocols, NFT marketplaces, and other blockchain applications. This unlocks new opportunities for Bitcoin to interact seamlessly across diverse ecosystems.

Start building with iBTC and Dfns

Whether you're building DeFi apps, exploring cross-chain solutions, or expanding Bitcoin's utility, our APIs make it easy to integrate iBTC.

• Learn more about iBTC: ibtc.network 
• Start building with Dfns: dfns.co