Elastos has introduced BTCD, the first stablecoin fully backed by Bitcoin. The new project aims to create a programmable currency based on digital gold.
What is BTCD?
BTCD, or Bitcoin Dollar, is the world's first stablecoin that is fully collateralized with Bitcoin and governed by the Elastos SmartWeb system. Launched on a decentralized platform since 2018, the project offers users the ability to unlock liquidity without the need to sell their BTC.
Technical Features and System Operation
BTCD utilizes P2WSH technology to ensure non-custodial control of funds. Users can lock their BTC in P2WSH addresses, while miners generate BTCD and track transactions using zero-knowledge proofs for small BTC fees. The system also provides protection through liquidation mechanisms if the collateral ratio falls below a set threshold. Transparency is achieved through real-time proof-of-reserves reports on the Bitcoin blockchain.
Opinions and Future of BTCD
According to **Sunny**, co-founder of Elastos, BTCD offers new opportunities for miners, allowing them to earn additional income through staking and supporting the protocol. **Jacob Li**, Head of Operations at NBW, stated, "BTCD allows me to use my Bitcoin without having to trust a central bank. I can unlock its value for consumer markets."
BTCD unites Bitcoin's balance with Elastos' decentralized infrastructure, creating new opportunities for users and ensuring transparency in financial transactions.
