Official Announcement

For the questions of some community users, details about Q&A are as follows:

What major upgrade will LBTC make in the next phase?

The main upgrade is in the UTXO data model.

UTXO is the abbreviation of Unspent Transaction Output.

The core design idea of UTXO is stateless, which only records transaction events instead of the final state.

UTXO has two main advantages:

1. Simple and safe, hard to make mistakes

2. Transactions can be processed concurrently to improve the transaction speed

Since UTXO is stateless, if user want to check the address balance, it need to accumulate all unspent transactions for a given address. It can be seen that UTXO is inefficient when processing data status. The account model is more suitable for handling transaction status than UTXO model, especially when dealing with DeFi transactions.

In the next stage, LBTC will mainly focus on upgrading UTXO model to account model.

LBTC said to fully embrace DeFi, what are the specific plans?

LBTC’s initial plan is to open up the cross-chain channel between BTC and ETH, establish its own oracle system. Through the oracle, LBTC will generate a mapping based on the Ethereum main network. The mapping will enable swap and liquidity mining on the Ethereum main network. At the same time, the mapped token can also be remapped back to the LBTC network. Initially LBTC DeFi will be carried out on the Ethereum network, and then with the development of the LBTC ecosystem, it will gradually migrate back to the LBTC network.

The LBTC-based full-stack DeFi protocol is currently under development, and the project token will be distributed via liquid mining.