This article was first published on Wanchain - Medium
With the release of Wanchain 5.0, a new decentralized crosschain solution has been implemented already! In the last article, I analyzed the renBTC crosschain solution, and I also mentioned that wanBTC will have a significant improvements over Ren’s solution in terms of decentralization and security mechanism. At the same time, many readers asked me about another project tBTC, which is aother project that wraps BTC on Ethereum. This article will analyze some designing and implementations of the similarities and differences between tBTC with wanBTC. And I wish to give readers a different perspective to view these BTC-wrapped solutions.
Let’s take a look at the designing mechanisms of tBTC and wanBTC. Firstly, both projects are trying to use more decentralized ideas to achieve interoperability/crosschain. Objectively speaking, neither can fulfill the ‘perfect’ state of 100% ‘absolute decentralization’ due to the bottleneck of the existing technologies. In addition to the core cryptographic technology that ensures the security of crosschain locked accounts, wanBTC and tBTC both use ‘extra’ economic measure to ensure the security of users’ native BTC assets, even if the extreme technical ‘black swan’ incident happens! This economic measure is the ‘collateral’ mechanism.
In tBTC’s design, the node that manages native BTC assets is called ‘Signer’, while in wanBTC, the node that also manages asset is called ‘Storeman Group’. Both tBTC and wanBTC require collateral deposits for the ‘signature’. The difference is that the Signer of tBTC uses 150% Ether for the ‘over-collateral’ and the Storeman of wanBTC uses a 200% WAN coins as ‘over-collateral’.
Such mechanism of over-collateralization is a very good protection for locking the original assets in addition to technical guarantee. It can be regarded as ‘Double Security’. One more thing to add, since it is over-collateralized, for the price spot and liquidation settlement of the collaterals against ...
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