Bitcoin, widely known as digital gold, is a powerful growth driver in the cryptocurrency industry, acting as both a store of value and a liquidity engine for decentralized finance (DeFi).

TON Teleport BTC builds on Bitcoin’s foundational principles to integrate its liquidity with TON's ecosystem and Telegram audience, uniting enhanced yield opportunities, accessible distribution capabilities, and next-generation security standards.

This document examines how TON Teleport BTC combines Bitcoin’s strong security with TON’s scalability and potential.

What is TON Teleport BTC?

TON Teleport BTC brings Bitcoin directly into Telegram through TON as a tgBTC, allowing you to carry it in your pocket—inside the Web3 mini apps you use daily. (EVAA, STON Fi, DeDust, StormTrade, etc)

Through tgBTC, a tokenized Bitcoin, you can securely send and receive Bitcoin within not only @wallet but also the TON ecosystem. And all of that without relying on exchanges or third parties like custodians—just you, TON, and Telegram.

How tgBTC drives an era of Bitcoin on TON?

TON Teleport BTC positions TON as the ultimate gateway between Bitcoin ecosystem and real-world applications (Telegram Mini Apps), offering an unseen level of distribution to users engaged with Bitcoin.

Let’s explore how TON Teleport BTC will shape the Bitcoin Finance (BTCFi) on TON:

• BTC’s Liquidity + TON’s DeFi = Yield: With tgBTC’s in TON’s DeFi ecosystem, Bitcoin evolves from a store of value to a tool for financial growth. Earn more through lending, staking, and trading, leveraging Bitcoin’s liquidity for efficient collateralization and yield farming.
• Trustless + transparent BTC = tgBTC: Bitcoin meets trustless infrastructure with TON Teleport BTC. Decentralized control ensures security, with validators safeguarding transactions and tgBTC transparently backed 1:1 by Bitcoin.
• Low-cost tgBTC transactions = Distribution: Send Bitcoin like a message—no exchanges, no third parties. Thanks to TON's extra currency feature, tgBTC transactions will be 10x cheaper than standard Jetton tokens, making Bitcoin integration on TON fast, practical, and accessible.

Below we describe how exactly TON Teleport BTC is secured.

Technology behind TON Teleport BTC

Transferring BTC into and out of the TON network involves several automated steps:

tgBTC deposit: Peg-in process

1. Transaction initiation: Users send BTC to a specified Bitcoin address, triggering a smart contract that mints tgBTC on TON after six block confirmations.
2. Bitcoin Light Client validation on TVM: The peg-in process is fully automated and relies on Bitcoin Light Client developed as a TON smart contact, fully on TVM. The Light Client verifies Bitcoin blocks autonomously, ensuring trustless operations without external reliance.
3. Minting process: Once BTC is validated, it’s minted as a tgBTC on TON. Thanks to TON's extra currency feature, transactions are processed as fast as Toncoin.

While the peg-in process may be slower due to Bitcoin’s confirmation requirements, once on TON, transactions return to standard network speeds.

tgBTC withdrawal: Peg-out process

tgBTC withdrawal involves two crucial aspects:

1. Sign a transaction: To withdraw BTC, users burn their tgBTC on TON, initiating a transaction that securely releases BTC to the specified address.
2. Get Validators consensus: Masterchain validators on TON oversee the Peg-Out process, ensuring that Bitcoin unlocking adheres to all pre-verified parameters.

This process eliminates double-spending by confirming the user’s intention through the burn and then securely transferring BTC. Peg-out, like peg-in, is fully automated and requires no human intervention.

How TON Teleport becomes as secure as TON

TON Teleport BTC goes beyond basic peg-in and peg-out with next-generation security mechanisms to protect users and assets. By relying on its consensus, TON Teleport BTC aims to be as secure as TON Blockchain.

1. TON Validators consensus: As we mentioned, to peg-out, you require the signatures of master chain validators (top 100 by stake) to approve a transaction.
2. Validator rotations: Validators on TON rotate every 18 hours, distributing transaction verification among a changing group of participants. Each rotation updates public keys and transfers Bitcoin control to the current validator group.
3. Consensus-based upgrades: In case validators reach consensus to update system components, it allows flexible enhancements like contract upgrades or added security features without compromising system integrity.
4. Refunds for expired deposits: A refund mechanism lets users reclaim funds if a Bitcoin deposit fails to complete before a validator rotation, which makes your money secure. Users set up a Check-Sequence Verify (CSV) script (with password) that refunds BTC if the transaction remains incomplete within a specified period (typically two weeks).
5. Inspectors Layer: They monitor transactions, temporarily pausing the system if it detects irregular activity. Inspectors cannot alter transactions but add a safeguard against potential risks.

Cryptographic super power

TON Teleport BTC employs modern cryptographic technologies, including:

• Distributed Key Generation (DKG): It ensures no single validator can act unilaterally, maintaining decentralization.
• FROST (Flexible Round-Optimized Schnorr Threshold Signatures): Aggregates validator signatures, significantly reducing Bitcoin transaction fees.

Truly affordable minting process

Aggregated signature technology in TON Teleport BTC controls transaction costs by replacing the traditional multi-signature method with a single group signature, which typically requires multiple individual signatures.

Here's how it works:

TON Teleport BTC uses group signatures to combine multiple validator signatures into one, decreasing transaction size and fees on the Bitcoin network. With the Bitcoin Taproot upgrade, TON Teleport BTC now benefits from aggregated signatures, thanks to the efficiency of Schnorr signatures.

Through Bitcoin's Taproot upgrade, we're also cutting costs while improving security and decentralization to optimize BTC transactions. By reducing the transaction size, TON Teleport BTC ensures you can move your assets with lower fees.

BTCFi: Next generation DeFi on TON

With TON Teleport BTC and tgBTC you will see more DeFi and yield generation opportunities within the TON ecosystem by activating Bitcoin's liquidity.

tgBTC introduces arbitrage potential across platforms to leverage liquidity imbalances and promote active trading. TON Teleport BTC also aims to enhance Bitcoin’s scalability and cross-chain interoperability, contributing to a trustless, DeFi environment where Bitcoin’s liquidity and utility evolve.

Below is a summary of Bitcoin’s potential in TON’s DeFi ecosystem:

• tgBTC can serve as collateral for borrowing stablecoins, supporting liquidity pools, and leveraged trading in lending protocols (EVAA and others coming)
• tgBTC-backed assets power collateralized debt positions (CDPs), similar to MakerDAO’s model DAI.
• Through partnerships like GoMining, users can rent GPUs, pay for energy, and mine Bitcoin, withdrawing earnings directly in TON,

Thanks to trustless tgBTC, TON Teleport BTC technology enhances yield generation on TON with BTCFi, paving a brand new way for Bitcoin’s seamless integration into decentralized finance—a major step forward in Bitcoin’s evolution toward real-world applications and mass adoption.

To read the full TON Teleport BTC Whitepaper please click here.