Layer-1 blockchain Nomic has launched its new decentralized Bitcoin custody solution, nBTC, on Ethereum's testnet as of September 12.

Nomic’s nBTC aims to provide a competitor to Wrapped Bitcoin (WBTC) without the centralization issues that have surrounded it.

This innovation allows users to on- and off-ramp Bitcoin (BTC) on Ethereum, eliminating the need for third-party custodians.

Matt Bell, CEO of Turbofish and core contributor to Nomic, highlighted that nBTC is back by a decentralized reserve of BTC.

Nomic operates within the Cosmos ecosystem, enabling nBTC to be transacted across compatible chains leveraging Inter-Blockchain Communication.

Prior to nBTC, options available for utilizing BTC in DeFi were limited, primarily to WBTC and tBTC, which came with diverse challenges.

The reliability of WBTC has been questioned, particularly following BitGo's controversial transfer of custody to a joint venture involving Justin Sun.

The tBTC model provided an alternative by utilizing multiparty computations and smart contracts, while Threshold proposed updates to WBTC's custody model.

Alameda Research's renBTC was another previous alternative, but it faced closure post-FTX collapse, leaving fewer trusted options for users.

Source: https://cointelegraph.com/news/nomic-ethereum-support-decentralized-bitcoin-custody-testnet

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