New Choices for BTC Cross Chain Technology: Analysis of Innovative Implementation Solutions

Recently, a novel implementation method for Bitcoin cross-chain has attracted attention in the industry. Although there are already various BTC wrapping solutions on the market, such as WBTC and tBTC, there remains a certain barrier for ordinary users to directly exchange these wrapped assets for native BTC. At the same time, the difficulty of directly exchanging native BTC for other on-chain assets is also considerable. Although Thorchain has made some achievements in this field previously, emerging cross-chain solutions provide users with more options. Let’s delve into the operating mechanism of this innovative solution:

1. BTC trading monitoring

After the user initiates a cross-chain transaction, the BTC monitoring component in the system starts to function. It acts as a "sentinel", closely monitoring the Bitcoin network and waiting for the user to transfer BTC to the designated address. Once it detects that the user has successfully sent BTC, this component immediately feeds back to the system, paving the way for subsequent operations.

2. Cross-Chain Coordination Network

Next, a dedicated coordination network intervenes in the process. This network acts as a "dispatch center," responsible for transmitting information between different blockchains and ensuring that all operations remain synchronized. Its main responsibility is to confirm that the BTC to be cross-chain has been locked and to notify the target chain that the BTC is ready for the next operation.

3. Cross-chain asset mapping

During the cross-chain process, since the underlying mechanism of the Bitcoin network cannot be directly altered, the native BTC will not be directly transferred to other chains. Instead, it will be locked in a secure storage point within the Bitcoin network, which is managed by a coordinating network. Meanwhile, the system will create a corresponding wrapped asset on the target chain.

4. Target Asset Exchange

Finally, on the target chain, this newly created wrapped asset will be exchanged for the target token that the user requires. However, the current support for this kind of exchange is still relatively limited.

Overall, although this implementation may seem complex, it essentially adopts a relatively simple lock-issue mechanism. Its characteristic lies in the use of a more decentralized locking method, focusing on specific technical areas. This solution aims to support more blockchain networks and asset types, providing a more convenient way for BTC to flow within the multi-chain ecosystem.

From a financing perspective, the project has gained the favor of well-known institutions in the industry, raising $2 million in investment. This project adheres to the concept of "activating more BTC" and is highly aligned with the current development trends in the blockchain industry, showcasing a promising development outlook.