TL;DR
- BitGo will provide support for the Bitcoin Layer 2 network Stacks and the new sBTC token standard, enriching BTC functionalities without compromising security.
- As a Signer on Stacks, it will allow users to expand their BTC holdings using sBTC, without the need to lend their assets, facilitating BTC rewards directly into their wallets.
- The process is straightforward: users deposit BTC into a script on the Bitcoin blockchain, and BitGo issues sBTC to their addresses.
BitGo, a renowned provider of digital asset infrastructure services, has announced the launch of its support for the Bitcoin Layer 2 network Stacks and the new sBTC token standard. The initiative aims to enhance Bitcoin functionalities by using sBTC on the Stacks network, enabling advanced operations without compromising security or efficiency.
BitGo joins the Stacks network as a Signer, playing a crucial role in blockchain consensus and block production. This integration allows users to expand their BTC holdings using sBTC from Stacks, without the need to lend their underlying assets. This means users can generate BTC rewards directly into their wallets using sBTC, a decentralized digital asset backed 1:1 by BTC.
BitGo announces support for Stacks Nakamoto and sBTC.
BitGo, the signer behind WBTC on Ethereum, will be one of dozens of institutional signers for sBTC.
This is a big step for Bitcoin L2s 🟧
— muneeb.btc (@muneeb) July 18, 2024
How BitGo’s Conversion Works
The process to obtain sBTC is relatively straightforward: users deposit an equivalent amount of BTC into a script controlled by BitGo or other Signers on the Bitcoin blockchain. Once deposited, the Signer proceeds to mint sBTC and sends it to the corresponding addresses of the users. Similarly, the conversion of sBTC to BTC is carried out through a peg-out transaction, where the Signer facilitates the return of BTC to users’ addresses.
BitGo will support Stacks to expand smart contract capabilities and decentralized applications. The initiative will strengthen the position of both platforms within the blockchain and crypto industry, promoting the evolution and adoption of Bitcoin.
Bitcoin’s L2 solutions are gaining traction in the industry. Stacks is at the forefront of expanding the BTC ecosystem and promoting innovations. This collaboration could encourage more developers to explore and capitalize on the opportunities offered by Bitcoin’s L2 solutions, boosting their growth and adoption.
