How the Bitcoin Bridge Works
Last updated
Last updated
On Bitcoin, users interact with Multisigs (operated by a decentralized network of validators and verifiers) to lock the assets to be bridged ("source asset"), and on the destination blockchain to receive the bridged asset ("destination asset").
Additionally, users on Bitcoin may provide additional data (OP_RETURN) to trigger certain smart contract interaction on their behalf automatically by Brotocol.
Multisigs are Bitcoin wallets that are operated by multiple signers. In contrast to a typicall wallet requiring just one party to sign a transaction, a multisig requires multiple parties or signers to sign a transaction.
On L2s or non-Bitcoin chains, users interact with "Endpoints" on the source blockchain to lock the assets to be bridged ("source asset"), and on the destination blockchain to receive the bridged asset ("destination asset").
Endpoints are the smart contracts that handle the asset transfers. They are owned by multisig contracts (for example, on Ethereum and on Stacks) operated by a decentralized network of validators and verifiers.
Users use Endpoints to trigger transfer of source assets. The destination assets are then sent by a relayer by producing cryptographic proofs.
That the assets are held by contracts owned by multisig contracts is important because this minimises the risk of a malicious actor stealing the private key and assets sent by users.