• Threshold Network has launched Wormhole, a cross-chain token protocol, to bridge Bitcoin to other blockchains.
• The integration will allow tBTC tokens to be transferred to both Ethereum Virtual Machine (EVM) and non-EVM chains.
• This new bridging method eliminates the need for centralized bridges, which increases security for token holders.
Threshold Network Bridges Bitcoin to 20 Blockchains
Threshold Network is now working with the cross-chain token protocol Wormhole in an effort that hopes to allow the easy movement of a tokenized representation of bitcoin (BTC) to some twenty blockchain ecosystems. The Wormhole integration will allow tBTC tokens to be transferred to both Ethereum Virtual Machine (EVM) and non-EVM chains, eliminating the need for centralized bridges which increases security for token holders.
What is Wormhole?
Wormhole proposed the integration to the Threshold community in mid-April, saying its objective was to help threshold bitcoin (tBTC) become the dominant bitcoin representative token in on-chain DeFi ecosystems. Each tBTC token is fully backed by 1 bitcoin held in reserve.
The Benefits of Bridging With Wormhole
Using bitcoin on other networks previously required users to rely on centralized bridges, which increased risks for token holders. The Wormhole bridging plan relies upon a new method for bridging ERC-20 tokens that allows the efficient deployment of capital to Ethereum sidechains. Instead of creating wrapped tokens for each chain, which soak up valuable liquidity that could be used elsewhere, tBTC will be minted on Ethereum and then deployed for each new chain natively within that ecosystem. This way, tBTC supply remains intact and risk is corralled in local ecosystems.
Governance Vote
The agreement between Threshold Network and Wormhole won strong community support and was fully approved after a governance vote on April 29th .
Conclusion
The integration of Wormhole into Threshold Network provides users with secure access to transfer their BTC across multiple blockchain networks without relying on centralized bridges or creating wrapped tokens that soak up valuable liquidity from digital assets markets.