Ingenious Cross-Chain Solutions: The Implementation Process of a New Type of BTC Cross Chain Technology

Recently, an innovative way of implementing BTC cross-chain has attracted attention in the industry. Although there are already various BTC wrapping solutions on the market, such as WBTC and tBTC, it still poses a certain difficulty for ordinary users to directly exchange these wrapped assets for native BTC. At the same time, directly exchanging native BTC for assets on other chains also faces challenges. In addition to existing solutions like Thorchain, this new cross-chain technology offers another possibility for the future. Let's take a closer look at its implementation process:

1. BTC Forwarder

When a user initiates a cross-chain transaction, the BTC relay component in the system begins to operate. It acts as a "watcher," closely monitoring the Bitcoin network and waiting for the user to transfer BTC to the specified address. Once it detects that the user has successfully sent BTC, the relay immediately provides feedback to the system for subsequent operations.

2. Relay Network

Next, the relay network intervenes in the process. As the "coordinator", it is responsible for transmitting information between different blockchains and maintaining operational synchronization. The relay network ensures that the BTC to be cross-chained is securely locked, while notifying the target chain that the BTC has arrived and the next steps can be taken.

3. Synthesize BTC

During the cross-chain process, since the underlying mechanism of the Bitcoin network cannot be directly changed, the native BTC will not be directly transferred to other chains. Instead, it will be locked in a "vault" managed by a relay network within the Bitcoin network. Meanwhile, the system will mint a wrapped asset called synthetic BTC on the target chain.

4. Target Token Acquisition

Finally, on the target chain, the synthetic BTC will be exchanged for the target asset required by the user. It is worth noting that the currently supported trading volume is still relatively limited.

Overall, the implementation of this cross-chain technology seems complex, but is relatively simple. Its core logic is based on the "lock-issue" model, but its locking method is relatively decentralized and focuses on specific areas. This technology aims to support more blockchain and asset types, providing a more convenient way for BTC to flow in a multi-chain ecosystem.

From an investment perspective, this technology has gained favor from several well-known institutions, with a financing amount of $2 million. Its concept of "activating more BTC" is also highly aligned with current market trends. As the technology continues to improve and its application scope expands, this innovative cross-chain solution is expected to play an important role in the future blockchain ecosystem.