This paper introduces TeleBTC, a fully decentralized protocol designed to wrap Bitcoin (BTC) on programmable blockchains. The creation of a decentralized wrapped BTC presents challenges due to the non-programmable nature of Bitcoin, making it difficult to custody BTCs in a decentralized way. Existing solutions have addressed this challenge by introducing an external layer of validators who take custody of users' BTCs. However, the security and decentralization of this layer are inferior to the underlying blockchains on which wrapped BTC is built. Moreover, the process of joining or leaving for a validator has become overly complex and expensive. To overcome these limitations, we propose a novel approach that eliminates the need for such an external layer by leveraging the light client bridge protocol. Additionally, we employ economic mechanisms such as incentivization and slashing, resulting in a secure and trust-minimized wrapped BTC solution. With TeleBTC, users can seamlessly transfer their BTC to other blockchains and utilize it within decentralized applications. Furthermore, they can unwrap their TeleBTC and reclaim the native BTC. To address the high costs associated with light client bridges, we present an optimistic approach that minimizes the cost. This approach significantly reduces the operational expenses of running the protocol.

翻译：本文介绍了TeleBTC，一种旨在将比特币（BTC）包装到可编程区块链上的完全去中心化协议。由于比特币的非可编程性质，创建去中心化的包装BTC面临挑战，这使得以去中心化方式托管BTC变得困难。现有解决方案通过引入外部验证者层来解决这一挑战，这些验证者负责托管用户的BTC。然而，该层的安全性和去中心化程度低于包装BTC所基于的底层区块链。此外，验证者加入或退出的过程变得过于复杂且昂贵。为克服这些限制，我们提出了一种新颖方法，通过利用轻客户端桥接协议消除对外部层的需求。同时，我们采用经济机制，如激励和罚没，从而提供安全且信任最小化的包装BTC解决方案。借助TeleBTC，用户可以无缝地将他们的BTC转移到其他区块链，并在去中心化应用中使用。此外，他们可以解包TeleBTC并赎回原生BTC。为应对轻客户端桥接的高成本问题，我们提出了一种乐观方法以最小化成本。该方法显著降低了运行协议的运营支出。