How BitTorrent Chain is advancing blockchain interoperability

Nick M11 hours agoHow BitTorrent Chain is advancing blockchain interoperabilityWith 6,200 stakers and 39.9 trillion BTT locked, the BitTorrent Chain is already thriving and is set to supercharge Tron’s DeFi ecosystem with fast, low-cost cross-chain transfers.360 Total views6 Total sharesListen to article 0:00ReportOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe need for seamless asset transfers across different networks has long challenged the blockchain landscape. The BitTorrent Chain (BTTC) attempts to provide a scalable, high-throughput, and low-fee interoperability layer between Tron and Ethereum Virtual Machine (EVM)-based chains. Cointelegraph Research recently released a report that explores BTTC as an interoperability layer and surveys the broader BitTorrent ecosystem.

BitTorrent’s evolution: From P2P file sharing to blockchain innovation

Launched in 2001, BitTorrent was a game-changer in the world of peer-to-peer (P2P) file sharing and accounted for one-third of all internet traffic within a few years of its initial release. However, as the internet evolved, the limitations of BitTorrent’s incentive structure became apparent and led to a decline in BitTorrent’s usage.

In 2018, the acquisition of BitTorrent by Tron marked the beginning of a new chapter. Tron expanded BitTorrent’s scope beyond file sharing by integrating blockchain technology. This led to the creation of new systems such as the BitTorrent Filesystem (BTFS) and, more recently, the BitTorrent Chain (BTTC). The BitTorrent (BTT) token is the utility token for each of the networks. BitTorrent Filesystem

BTFS is a decentralized file storage system that rewards users with BTT tokens for long-term file storage. It addresses the limitations of the original BitTorrent protocol, which relied heavily on altruism. The original protocol often succumbed to the tragedy of the commons — when individuals prioritize their own interests over the needs of the whole — and users would cease seeding files after their downloads were complete. BTFS, on the other hand, motivates miners to maintain files over extended periods with BTT token rewards as an incentive. 

Over eight million storage miners are currently active on the network, and more than six pebibytes of data have been stored. The successful implementation of BTFS laid the groundwork for further blockchain integration in the BitTorrent ecosystem and the development of BTTC.BitTorrent Chain: Bridging blockchain networks

BTTC was created to address the need for seamless asset transfers between different blockchain networks. It is designed as a scalable interoperability layer that connects Tron and EVM-based chains. Leveraging a network of proof-of-stake sidechains derived from Cosmos’ Tendermint software stack, BTTC achieves high transaction throughput and low fees. Validators stake BTT on Tron, and slashing conditions are applied to ensure the integrity of the network.

BTTC facilitates asset transfers across different chains, including Tron, Ethereum and the BNB Smart Chain. It employs a lock-and-mint model for these transfers, where tokens are locked on one chain and minted on BTTC. The network processes approximately 7,000 transactions per second with a block time of three seconds. Average gas fees are below $0.01. Security and reliability are maintained by 12 active validators, supported by over 6,200 stakers (figure 1).

– 12 BTTC Validators by total stake share. Source: Delivery Scan

To further improve the user experience, BTTC incorporates a relayer service that speeds up asset withdrawals across different blockchain networks. Under normal conditions, withdrawing assets from BTTC to another blockchain can involve a delay of 15 to 30 minutes due to the need for checkpoint validation. Relayers are independent service providers who facilitate faster withdrawals by handling the cross-chain communication and pre-paying the necessary gas fees on the target chain. They do this in exchange for a service fee, which is typically set at 120% of the gas cost for the withdrawal transaction.BTT token

The backbone of the ecosystem is the BTT token, which is integral to both BTFS and BTTC’s operations. It has a fixed supply of 990 trillion tokens, following a redenomination from the original 990 billion tokens in 2022 (figure 2). 

Each year, approximately 7 trillion BTT tokens are distributed as staking and validation rewards, accounting for 0.7% of the total BTT supply. This distribution encourages active participation from users, offering an attractive annual percentage yield of 17.65% for those who stake their BTT tokens. 

Currently, 39.9 trillion BTT are staked, which is 4% of its total supply. Apart from staking, BTT also serves as the primary currency within the BTFS to reward storage miners who store data on the network. The BTFS system generates approximately 7 billion BTT in daily organic protocol revenues, and miners receive incentives of around 7.5 billion BTT daily. 

– BTT Supply Vesting Schedule. Source: Binance ResearchDownload a full version of the report for free hereFuture directions

Looking ahead, BTTC is expected to play a central role in Tron’s upcoming initiatives, particularly its integration with the Bitcoin ecosystem. Future developments include expanding the availability of wrapped Bitcoin assets on the Tron and BTTC networks, collaborating with Bitcoin layer-2 projects, and creating a layer-2 solution that integrates Tron, BTTC and Bitcoin. This will allow Tron and BTTC to tap into Bitcoin’s security and liquidity with the speed and cost advantages of BTTC’s proof-of-stake system.

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This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Cointelegraph does not endorse the content of this article nor any product mentioned herein. Readers should do their own research before taking any action related to any product or company mentioned and carry full responsibility for their decisions.# Blockchain# BitTorrent# Blockchain Storage# Tron# Cointelegraph Research ReportsAdd reaction