Core Features

sBTC offers several core features that make it a powerful trust-minimized Bitcoin bridge between Stacks and Bitcoin:

1. 1:1 Bitcoin Backing

Each sBTC token is backed by an equivalent amount of Bitcoin in the peg wallet. This ensures that sBTC maintains a stable value relative to BTC.

2. Decentralized Management

The sBTC peg wallet is maintained and managed by a set of sBTC signers. This decentralized approach enhances security and reduces single points of failure.

3. Quick Conversions

sBTC facilitates rapid movement between BTC and sBTC:

• BTC to sBTC conversion can be completed within 3 Bitcoin blocks

• sBTC to BTC conversion can be completed within 6 Bitcoin blocks

4. SIP-010 Compatibility

sBTC adheres to the SIP-010 fungible token standard on the Stacks blockchain. This ensures wide compatibility with Stacks wallets and applications.

5. Community Governance

The initial sBTC signing set is determined by a community vote, weighted by STX holdings. This approach ensures that the community has a say in the management of the sBTC system.

6. Signer Key Rotation

sBTC signers have the ability to rotate their private keys, enhancing long-term security of the system.

7. Transaction Fee Sponsorship

sBTC transactions on Stacks can be sponsored, allowing users to pay transaction fees in sBTC instead of STX.

These core features work together to create a secure, efficient, and user-friendly bridge between Bitcoin and the Stacks ecosystem. Let's dig into each of these features.