Intro
Bitcoin has a lot more value flowing through it than Ethereum but lacks Ethereum's functionality. tBTC aims to bring a true version of Bitcoin onto Ethereum and DeFi. This will likely unlock radical new value in DeFi and fuel exciting new applications.
tBTC has broad-reaching, deep potential. It could lead to radically increased usage of bitcoins in decentralized finance on Ethereum. This boost to the flow of value on Ethereum is likely to lead to new applications which are impossible at current liquidity levels. If tBTC gains traction it should contribute value to the Bitcoin, Ethereum and Keep networks. It may also serve as a cultural bridge between Bitcoin and Ethereum network participants.
Learn more about the implications of tBTC
Bitcoin's market cap is an order of magnitude larger than Ethereum's. But this value is largely stagnant because it cannot be used in more complex use cases.
Liquid and WBTC have developed simple solutions but fall down in terms of security and are easily manipulated. MakerDAO points the way toward a simple synthetic solution, but this would easily lead to inflation.
tBTC wants to bring the endless utility of smart contracts to Bitcoin. But it aims to do so in a way that doesn't degrade the ethos or security of Bitcoin. So the ERC-20 backed Bitcoin must be censorship- and inflation-resistant.
In tBTC, Depositors put their 
Bitcoin into a wallet which is created and guarded by a diverse set of Signers. For 1 BTC deposited, 1 
TBTC is then created on Ethereum. TBTC is an ERC-20, fungible token and can be used in many DeFi applications. TBTC holders can then redeem their TBTC back into BTC, releasing the deposit.
