In-kind vs wrapped
In-kind Bitcoin delegation represents a paradigm shift from traditional wrapped solutions. Unlike wrapped Bitcoin, which requires locking native Bitcoin in a centralized or semi-centralized custodian to issue a synthetic token for cross-chain interactions, in-kind delegation ensures that users retain full control of their Bitcoin. This approach eliminates the need for trusting bridges for a peg-out and reduces vulnerabilities associated with smart contract exploits or custodial risks.
Bitcoin Ownership
User retains full control of the asset
Peg-out is processed by a custodian
Cross-chain flexibility
Direct delegation via BitcoinPods
Requires rewrapping or conversion for cross chain
Security Model
Bonded security
Trusted custodian
Decentralisation
Permissionless. Anyone can deploy a BitcoinPod and join the system.
Single entity responsible for mint/burn.
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