Trust Minization

BitFire leverages tBTC, a fully trust-minimized representation of Bitcoin, to ensure that users retain full control over their assets at all times. Unlike traditional wrapped BTC solutions that rely on centralized custodians, BitFire eliminates the need to trust any single entity.

Key Features of Trust Minimization in BitFire:

• Decentralized Collateralization: BTC deposited as collateral is secured by a distributed network of validators, not a centralized custodian.

• Permissionless Operations: Users can mint, redeem, and borrow without seeking approval from intermediaries.

• Cryptographic Security: All operations are enforced through cryptographic proofs, ensuring transparency and immutability.

• Reduced Counterparty Risk: By removing centralized intermediaries, BitFire minimizes the risk of custody failures, fraud, or censorship.

By relying on math and cryptography rather than trust in people, BitFire creates a fully secure and permissionless environment for BTC-backed lending, unlocking liquidity while preserving Bitcoin’s core value.

Reference: https://docs.threshold.network/