The Open Network (TON) team has released the technical documentation for the TON Teleport BTC cross-chain bridge, designed to facilitate the transfer of bitcoins into and out of the blockchain ecosystem.
What’s better than TON? $TON+ $BTC of course! Dive into the TON Teleport BTC whitepaper that outlines the fundamental principles, technical aspects, and vision for tgBTC.
We’re bringing a trustless cross-chain bridge between Bitcoin and TON that will allow you to take crypto’s… pic.twitter.com/iKxXYsj8Q8
— TON ? (@ton_blockchain) November 28, 2024
“TON Teleport BTC brings Bitcoin directly into Telegram via TON as tgBTC, allowing you to carry it in your pocket—inside the Web3 mini-apps you use daily,” the developers stated.
The processes of depositing and withdrawing the first cryptocurrency occur autonomously, without the involvement of third parties such as exchanges or custodians.
Peg-in: A user sends BTC from the Bitcoin blockchain to a unique TON Teleport address. After six block confirmations, a smart contract issues an equivalent amount of tgBTC. The process is verified by the Bitcoin Light Client, which also operates as a TON contract.
Peg-out: A user burns their tgBTC, initiating the sending of bitcoins to a specified address. Compliance with all parameters is overseen by masterchain validators.
The developers highlighted the potential for using Bitcoin in the DeFi segment on TON to generate income and expand the mass adoption of the first cryptocurrency. For instance, tgBTC tokens can:
- serve as collateral for borrowing stablecoins, supporting liquidity pools, and leverage in lending protocols;
- support collateralized debt positions following the DAI MakerDAO model;
- be used to pay for mining services like GoMining.
By the end of the year, TON Teleport BTC will operate in testnet mode. The transition to the main network is scheduled for the second quarter of 2025. The bridge’s architecture allows for the future addition of support for other blockchains beyond Bitcoin.
Earlier in November, TON Foundation introduced a new governance model for the ecosystem in the form of a decentralized autonomous organization, Society DAO.