iBTC Network Documentation
  • Overview
  • Protocol
    • What is iBTC?
    • How iBTC Works
    • Attestor Network
    • Merchant Network
  • Security
    • Core Security Features
    • Proof of Reserves
    • Audit Reports
  • Yield & Rewards
    • Yield Opportunities
    • iBTC Rewards Program
  • Usage
    • Getting iBTC
    • Redeeming iBTC
  • Ecosystem
    • Supported Chains
    • Comparisons
    • Contract Addresses
  • Community & Support
    • FAQs
    • Contact Us
    • Glossary
  • Team
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  • 2-of-2 Multisig Vaults
  • FROST (Flexible Round-Optimized Schnorr Threshold Signatures)
  • Chainlink Proof of Reserve (PoR)
  • MPC (Multi-Party Computation) Wallet Support
  • Audited Smart Contracts
  • Why This Matters
  1. Security

Core Security Features

Fortifying iBTC with Cutting-Edge Safeguards

iBTC’s security architecture is built to eliminate the vulnerabilities plaguing traditional BTC-Fi—custodians, bridges, and opaque reserves. By leveraging Bitcoin Layer 1’s strength and advanced cryptography, iBTC ensures your assets are protected at every step. Let’s break down the fortress-like features that set iBTC apart.

2-of-2 Multisig Vaults

  • Mechanism: Each iBTC vault on Bitcoin Layer 1 requires two signatures—one from a KYB-verified merchant and one from the decentralized Attestor Network (e.g., 10-of-15 quorum).

  • Benefit: Prevents unilateral control, eliminating single points of failure.

  • Technical Detail: Uses Partially Signed Bitcoin Transactions (PSBTs) to lock BTC, ensuring no smart contract exposure on Bitcoin, unlike Ethereum-based wrappers.

  • Impact: Mitigates risks seen in custodial failures (e.g., Mt. Gox’s $140B loss, DOC6 PAGE2).

FROST (Flexible Round-Optimized Schnorr Threshold Signatures)

  • Mechanism: A threshold signature scheme where multiple attestors co-sign transactions, reducing signature size from 500+ bytes (traditional multisig) to ~100 bytes.

  • Benefit: Lowers transaction fees and enhances efficiency while maintaining security.

  • Technical Detail: Supports dynamic signer updates (e.g., adding/removing attestors) without on-chain fund movements, leveraging Schnorr’s aggregation properties.

  • Impact: Ensures resilience against collusion or node failures, a step beyond standard multisig.

Chainlink Proof of Reserve (PoR)

  • Mechanism: Real-time, on-chain verification that iBTC supply matches BTC reserves, using Chainlink’s oracle network.

  • Benefit: Guarantees 1:1 backing, preventing over-minting or reserve manipulation.

  • Technical Detail: PoR feeds (e.g., Arbitrum, Base) update every epoch, cross-checked by attestors. Example: If 1,000 iBTC are minted, 1,000 BTC must be locked.

  • Impact: Addresses TVL inflation issues (e.g., Solv’s double-counting), building investor trust.

MPC (Multi-Party Computation) Wallet Support

  • Mechanism: Institutions can use MPC wallets to split private keys across multiple parties, reducing compromise risk.

  • Benefit: Adds an extra layer of security for large BTC holders (e.g., whales, BlackRock).

  • Technical Detail: Integrates with QCs like Ledger and Fordefi, enabling threshold-based key management off-chain.

  • Impact: Complements multisig, minimizing insider threats in institutional settings.

Audited Smart Contracts

  • Mechanism: Ethereum-based contracts (e.g., AttestorManager) undergo regular third-party audits and continuous security reviews.

  • Benefit: Ensures no vulnerabilities in minting/redemption logic.

  • Technical Detail: Health monitoring system tracks contract states, alerting engineers to anomalies via automated reports.

  • Impact: Reduces smart contract risks (e.g., hacks costing billions), a key concern for DeFi users.

Why This Matters

iBTC’s security features tackle BTCFi’s Achilles’ heels—bridge exploits ($1.56B lost) and custodial risks. With a decentralized, auditable design, making it a beacon of trust in a murky landscape.

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Last updated 2 months ago