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 ingenious. Currently, there are many wrapped BTCs, such as WBTC and tBTC, but for ordinary people, it is still not very convenient to directly exchange WBTC for BTC. At the same time, it is also difficult to directly swap native BTC into assets on other chains. Previously, most of this was done through THORChain. Symbiosis is another option for the future. Let's take a look at the implementation process: 1. BTC Forwarder After the user initiates a cross-chain transaction, the BTC Forwarder component in the Symbiosis system starts to work. Its role is similar to a "monitor", responsible for monitoring the Bitcoin network and waiting for the user to transfer BTC to the specified address. When it detects that the user's BTC has been successfully sent, it will feedback to the system to proceed with the next step. 2. Relayers Next, the Relayers network begins to intervene. Its role is similar to a "coordinator", responsible for transmitting information between different chains and maintaining the synchronization of all operations. Its function is to ensure that the BTC to be cross-chained is locked, and it will also notify the target chain that the BTC has arrived and the next step can be taken. 3. syBTC In the cross-chain process, Symbiosis cannot change the essence of the Bitcoin network. The native BTC is not directly sent to another chain. It will be locked in a "safe" in the Bitcoin network, and this safe is managed by the Relayers network. Then, an encapsulated asset syBTC is minted on the target chain. 4. Obtaining the target token Finally, on the target chain, syBTC will be swapped for the target asset (but the currently supported amount is still very small). Overall, the implementation method looks complex, but it is actually quite simple, based on the logic of locking and issuing. However, its locking method is relatively decentralized, the track is very vertical, and the goal is to support more and more chains and assets, providing a more convenient way for BTC to flow across multiple chains. In terms of financing, it has received $2 million in investment from institutions such as Binance Labs and DWF, which is very much in line with the narrative of "making more BTC active".