A simple explanation of a difficult system.
Imagine that bitcoin is a gold bar — it is a very valuable thing, but it is difficult to move it from one place to another. We can mint gold coins (tBTC tokens) from this bar to make them mobile and easy to use.
To receive these coins (tBTC), we need first send our gold bar to the safe, which is protected with a special key.
This key is divided into three parts and no one owns it personally.
To open the safe, you need three signers who are chosen at randomly.
What if the signers are villains? They will connect the three parts of the key and steal our gold bar?
Do you see this puzzle box? In Keep Network, there is a box that is called “Random beacon”! Using it you can randomly select three puzzles (signers) if you shake it well.
If a fraudster throws his puzzles (nodes) into the box (into the network), then he will not be able to make three puzzles (signers) at once fraudulent. Because the puzzles inside the box will be shuffled. So they won’t get access to the safe!
Real signers can easily handle this task and your puzzle will be formed:
Hmm … Great! But what if our honest signers became crooks and decided to steal gold from the safe?
Great question! To prevent this from happening, each signatory gives a deposit (ethereum) and if they conspire and steal our gold bar, then we will take their gold coins! Then we will auction them off and be able to get our bitcoin back.
So, you do not need to trust the intermediary and at the same time, you are guaranteed to be able to exchange your gold bar for an equal number of gold coins?
Now everything has become much clearer, thanks!
If you would like to know more about the KEEP NETWORK project, tBTC go to:
A keep stores your data and protects it from censorship, so what you store always stays yours. tBTC lets Bitcoin…