What is Fast BTC and why is it important?

brought to you by Sovryn

January 13, 2022

Updated - 13/01/2022

Due to the decentralized nature of Sovryn, confirming a transaction takes time. This waiting time can be a deal-breaker for many users who are used to the speed of centralized finance. If the DeFi ecosystem wants to remain competitive, transaction speed is an issue that has to be addressed.

This is where FastBTC comes into play. With only 1 Bitcoin block confirmation wait time, you can get your bitcoin into your Sovryn wallet within minutes.

Sovryn is an RSK-native project. In order to use the platform one needs rBTC, the native token of the RSK protocol which is pegged 1:1 to BTC. While it is possible to swap BTC for rBTC, the process has previously been both lengthy and complicated, especially for newcomers.

The RSK 2-way-peg (2WP):

Peg-in
The process of converting BTC to RBTC.

Peg-out
The process of converting RBTC to BTC.

This process can take up to 24 hours to confirm a transaction as a large number of confirmations are required. Sovryn has been keenly aware of the downside of this long wait time.

FastBTC only requires 1 Bitcoin block confirmation and it allows you to convert BTC to rBTC in a matter of minutes by relaying BTC to rBTC.

How is this achieved?

  • For every rBTC address provided by the user, a BTC deposit address is generated from a multi-sig wallet (bip32). 
  • A smart contract on RSK provides rBTC which can be withdrawn from an authorized admin wallet. 
  • Multiple watchers are listening 24/7 for incoming transactions on all created BTC deposit addresses. 
  • If a new transaction is detected, a new network of nodes triggers a withdrawal from a multi-sig contract crediting the same amount on the user’s RSK wallet address, minus a small provision.

In simpler terms:

  • You ask to swap your BTC for rBTC and Sovryn node registers your swapping transaction request with the multi-sig wallet. 
  • Your request gets processed after it receives confirmation from at least 2 nodes. 
  • You get your rBTC into your wallet in no time.

And there you go, you are ready to trade.

Visit our wiki to find out more on how FastBTC works! 

And don’t forget - to Stay Sovryn :)


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