The Tezos network launched the tzBTC token provided by BTC
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Representatives of the Bitcoin Association Switzerland together with their partners launched the new tzBTC token on the Tezos network — it is provided with the Bitcoin cryptocurrency. Lucas Betschart, head of the Bitcoin Association Switzerland, noted that the new token will bring the Bitcoin brand and liquidity to the Tezos network, while gaining access to the wide functionality of the smart contracts of the Tezos project.
The introduction could provide a spark to Tezos ’efforts to build out a decentralized finance (DeFi) ecosystem. But the network’s DeFi offerings and uses cases for tzBTC are relatively barren at the moment. As a silver lining, StakerDAO, an app that allows investors to earn yield on various protocols, plans to launch its first product, called Blend, on Tezos at some point this quarter.
Another concern is the actual demand for Bitcoin use in DeFi applications. WBTC accounts for about 1% of the total value locked in Ethereum’s DeFi sector, according to DeFi Pulse. Keep Network, home of the tBTC application, has faced similar skepticism as some believe Bitcoin holders are wary of using novel and relatively untested blockchain-based apps.
The creators of the token noted that the main difference between Bitcoin and tzBTC is that the digital version of BTC can be used in dApps developed using Tezos technology. Roman Schneider noted that the new token does not yet mean access to DeFi-applications.
Nevertheless, if it is possible to achieve serious support from the side of the institutional, then the developers will quickly implement this functionality. Note that the tzBTC system provides for the formation of “key holders” and “censors”. The first group includes several startups, including LEXR, Taurus, Inacta, Swiss Crypto Tokens. The task of the second group will consist of accepting BTC coins from users and issuing tzBTC tokens to them. The companies Bity, Bitcoin Suisse, Sygnum, Woorton will be responsible for this.
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