sBTC is a form of non-custodial Bitcoin that you can use on the Stacks network. That allows bidirectional interface between Stacks smart contracts and Bitcoin. Use Bitcoin directly to participate in Decentralize Finance, mint NFTs, and then also have the smart contracts send the Bitcoin out into users wallets.
The Bitcoin peg-out problem has been the problem for over a decade. If you could take BTC from the main chain and put it back in a trustless way. The reason for launching other chains goes down a lot. Because of this problem, all these new chains have emerged. With RSK and liquid you’re trusting a multi-sig wallet. You’re trusting a company. You cannot trust people or companies, especially when a lot of capital is at stake. People will not trust multi-sig wallets to unleash massive capital. People want a BTC peg-out to trustless unleash Bitcoin’s potential. This Bitcoin peg-out is critical. Otherwise, you’re missing the main thing.
Most of the applications on Ethereum are going to run on Ethereum layers. Why are Ethereum layers interesting? You can easily move capital from the main chain in and out. These layers benefit from the security of Ethereum. Stacks will benefit 100% from Bitcoin security. The second bigger part is, people would be able to trustless move Bitcoin in and out of the Bitcoin layer. No wrapping fees, you will only pay the BTC on the main chain. The experience is going to be, you onboard with BTC, you see sBTC pop up in your wallet, and you can do things with it. Deploy sBTC in a contract, take a contract. Now, programmers can write contracts. The contract has sBTC sitting in there, but it’s completely automated, and programmable, to send that sBTC to a Bitcoin address, to the Bitcoin main chain.
Once sBTC is here, from ALEX’ point of view, you never ever have to sell your Bitcoin anymore. You can just swap your Bitcoin into sBTC, you can use it as collateral, and buy your pizza. You can use your Bitcoin to earn yield. Native Bitcoin yield, without even using xBTC or any other BTC. Your BTC will never leave your wallet. Now, Bitcoin is a yielding asset.
DAOs on Bitcoin are sort of limited by having some sort of multi-sig that’s operated by a founding team that manages where the Bitcoin goes. But sBTC could bring about more DAOs that have Bitcoin. Bitcoin has the largest market cap on earth. Bitcoin locked up with sBTC with minimal risk.
sBTC is going to change the game, it’s a key component to provide a user experience where Stacks is used under the hood as a smart contract layer for Bitcoin.
The BTC is actually sitting on a Bitcoin script. Clarity language is all focused on safety. Your Bitcoin is sitting on a Bitcoin script. Suddenly you’re bringing the superpowers of Ethereum directly to Bitcoin, but in a really safe manner.