Research Summary
The report provides an in-depth analysis of BitTorrent Chain (BTTC), a proof-of-stake layer-2 chain designed to solve scalability issues and interoperability. It discusses the evolution of cross-chain interoperability, the workings of BTTC, and its ecosystem, including the BTTC Bridge, BitTorrent Wallet, and BitTorrent Token (BTT).
Key Takeaways
Evolution of Cross-Chain Interoperability
- Fragmented Liquidity: The report highlights the issue of fragmented liquidity across various ecosystems due to the increase in the number of chains. The interoperability sector emerged to connect existing chains and minimize the friction between transacting across them.
- Shift to Messaging-Based Solutions: Early cross-chain bridges relied on a lock-and-unlock model, which posed major security risks. Developers have since shifted towards messaging-based solutions for cross-chain DApps, reducing the need for tokens to be locked in the bridge’s smart contract.
BitTorrent Chain (BTTC)
- Unique Approach: Unlike most cross-chain development that has progressed toward messaging-based bridges, BTTC innovates on the original lock-and-mint blueprint. It was created by the TRON Foundation and BitTorrent teams.
- High Throughput: BTTC boasts a high throughput of 7,000 transactions per second, with low block times of two to three seconds and average gas fees sitting under $0.01. It supports interoperability across various blockchains via the BTTC Bridge.
BitTorrent Token (BTT)
- Utility Token: BTT, the native token of BTTC, was initially launched as a TRC-10 token on the TRON blockchain. It serves as the gas token for the chain, powers transactions, and validator rewards. It can also be used as collateral on platforms such as JustLend on TRON.
- Legal Tender: BTT was formally accepted as legal tender in the Commonwealth of Dominica, granting the status to all cryptocurrencies on TRON.
Future Plans
- Integration and Collaboration: The protocol has big plans ahead after recently completing an integration with oracle service, Pyth. The TRON team and BitTorrent team are also collaborating on the upcoming TRON zero-knowledge Ethereum Virtual Machine (zkEVM) chain.
Actionable Insights
- Understand the Evolution of Cross-Chain Interoperability: The report highlights the importance of understanding the evolution of cross-chain interoperability, from the lock-and-unlock model to messaging-based solutions, and how BTTC is innovating on the original blueprint.
- Explore the BitTorrent Chain (BTTC): BTTC’s high throughput, low block times, and low gas fees make it a potential solution for scalability issues and interoperability. Exploring its workings and ecosystem could provide insights into its potential impact on the crypto space.
- Consider the Role of BitTorrent Token (BTT): BTT’s role as a utility token, its use as legal tender, and its potential use in DeFi applications highlight its importance in the BTTC ecosystem. Understanding its role could provide insights into its potential value.
- Monitor Future Developments: The report mentions BTTC’s future plans, including integration with oracle service, Pyth, and collaboration on the TRON zkEVM chain. Monitoring these developments could provide insights into BTTC’s future trajectory.
