Technical Architecture
The rexBTC technical architecture consists of the following five components: Bitcoin Attestor, Smart Contracts, Wallet Integration Library, Deposit Token, and Cloud Storage.
Bitcoin Attestor: The Bitcoin Attestor is a critical component within the rexBTC technical architecture responsible for verifying contract outcomes. Integrated with the Ethereum blockchain, it ensures the accuracy and credibility of contract results. Operating within a decentralized network, the Bitcoin Attestor consists of multiple validators who verify and publish contract outcomes through consensus algorithms. This decentralized design eliminates single points of failure, ensuring the security and reliability of contracts.
Smart Contracts: The rexBTC technical architecture includes a layer of smart contracts responsible for managing and executing DLC contracts. Integrated closely with the Bitcoin Attestor, smart contracts ensure the secure execution and settlement of contracts. Through smart contracts, participants can create, sign, and execute DLC contracts, with contract details and outcomes recorded on the blockchain.
Wallet Integration Library: rexBTC provides integration libraries for various Bitcoin wallets, allowing for easy signing and execution of DLCs. These integration libraries include implementations in different programming languages such as Rust and JavaScript, facilitating developers in integrating DLC functionality into their wallet applications.
Deposit Token - rexBTC: rexBTC is a self-custodied Bitcoin token on the Ethereum network, enabling Bitcoin holders to participate in DeFi while retaining full ownership of their assets. It utilizes DLC to lock Bitcoin in a special multisig, with one key managed by the depositor and another distributed across a decentralized network. Unlike most versions of wrapped Bitcoin, rexBTC eliminates the need for intermediaries by self-wrapping Bitcoin in the lockbox, reducing human error and adhering to the principle of user sovereignty. To mint rexBTC, users first lock Bitcoin in the DLC lockbox. Once BTC is received by the DLC, an equivalent amount of rexBTC is minted. Finally, users can deploy rexBTC to various DeFi applications for investment, lending, or trading. rexBTC is protected by the full hash rate of the Bitcoin blockchain, eliminating the need for depositors to lock or send their Bitcoin to external custodial addresses. Additionally, the DLC lockbox only pays out to depositors, meaning even in the event of a system hack, BTC would only be sent to legitimate owners.
Cloud Storage: An optional component of the DLC architecture is a storage platform for storing Contract Execution Transactions (CETs) from various wallets. CETs are a set of potential outcomes agreed upon by participating wallets. While these CETs are not trivial (each DLC ranges from 100KB to 5MB), it's preferable to store them off-chain to protect privacy and reduce costs. However, securely storing them is crucial, as losing them could prevent participants from signing and closing DLCs.
Thus, rexBTC has specially designed a system to securely store CETs for given transactions in the cloud, keyed to users' Bitcoin keys' hash values, to prevent potential loss of CETs due to participants losing wallets.
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