A brief analysis of BTC's new cross-chain strategy: Symbiosis's implementation process and technical analysis

Author: Chen Mo Source: X, @cmdefi

Symbiosis's implementation of BTC cross-chain is quite pleasing. There are many BTC packages, such as WBTC and tBTC, but it is still not convenient for ordinary people to directly exchange WBTC for BTC. At the same time, it is also difficult to directly swap native BTC into assets of other chains. Most of them were previously through Thorchain. Symbiosis is another option in the future. Let's take a look at the implementation process:

1.BTC Forwarder

When the user initiates a cross-chain transaction, the BTC Forwarder component in the Symbiosis system starts working. Its role is similar to that of a "monitor", responsible for monitoring the Bitcoin network and waiting for the transaction initiated by the user to transfer Bitcoin to the specified address. When it detects that the user's BTC has been sent successfully, it will feedback to the system for the next step.  

2.Relayers

Next, the Relayers network begins to intervene. Its role is similar to that of a "coordinator", responsible for transmitting information between different chains and keeping all operations synchronized. Its function is to ensure that the BTC to be cross-chained is locked, and at the same time notify the target chain that the BTC has arrived and can proceed to the next step.  

3.syBTC

During the cross-chain process, Symbiosis cannot change the nature of the Bitcoin network, and the native BTC is not sent directly to another chain. It will be locked in a "safe" in the Bitcoin network, which is managed by the Relayers network. Then a packaged asset syBTC is minted on the target chain.  

4. Obtain target tokens 

Finally, on the target chain, syBTC will be swapped into the target asset (but the current supported amount is still very small)

In general, its implementation method looks complicated, but it is actually relatively simple. It is based on the logic of lock-up -> issuance, but its locking method is relatively decentralized, and the track is also very vertical. The goal is to support more and more chains and assets, that is, to provide a more convenient way for the multi-chain flow of BTC. In terms of financing, it has received 2 million US dollars in investment from institutions such as Binance Labs and DWF. In line with the narrative of "making more BTC active", it is still very in line with the tone of the times.