What is BitTorrent Chain (BTTC), and how does it work?

Key takeaways

• BitTorrent Chain (BTTC) is a blockchain scaling solution enabling cross-chain compatibility with fast and cheap transactions along with scalable Web3 development.
• BTTC blockchain is different from the original BitTorrent peer-to-peer file-sharing platforms, although both are owned, developed and maintained by the Tron Foundation.
• The architecture of the BTTC blockchain includes a root contract layer, a validation layer and a core layer for block creation, which help open up diverse BitTorrent Chain use cases.
• The BitTorrent Token (BTT) powers BTTC for transaction fees and staking. Plus, it is used on the original BitTorrent file sharing network to incentivize faster download speeds.

The origins of BitTorrent rewind to 2001, eight years before Bitcoin (BTC) and cryptocurrencies were truly born. Before the days of Netflix and YouTube, you might remember using torrents to upload and download media content. 

The BitTorrent protocol was a pioneer in developing this style of peer-to-peer (P2P) file sharing. It enables you to distribute data over the internet in a decentralized fashion. Sounds familiar to crypto and blockchain technology fundamentals, doesn’t it?

Understanding the BitTorrent (BTTC) Chain

The original BitTorrent decentralized platform accounted for 35% of internet traffic in 2004, although over the last decade user numbers have slumped significantly and the project has become hard to monetize profitably. This led to its acquisition in 2018 by Justin Sun and the Tron Foundation, which developed the Tron blockchain.

Over the next three years, BitTorrent and the Tron Foundation became collaborative projects, working to integrate cryptocurrency into BitTorrent and launching the BitTorrent Chain, also referred to as BTTC, in 2021.

What is BitTorrent Chain?

BitTorrent Chain is a blockchain scaling solution that provides crosschain service between a diverse range of blockchains. It aims to deliver a quicker, cheaper and scalable platform for Web3 developers. 

The network can be used to bridge digital assets between blockchains and enable developers to build applications on the network. 

BitTorrent Chain (BTTC) vs BitTorrent — There’s a difference

Now, BitTorrent Chain and BitTorrent are often confused. Many people assume they are the same thing — but they’re not. It’s important to understand this, as there is an overwhelming amount of misinformation on the subject.

• BitTorrent is still the original peer-to-peer file-sharing platform.
• BitTorrent Chain is a blockchain that connects other blockchains together. 

Did you know? The original BitTorrent file-sharing network used the SHA-1 cryptographic hash function before it was upgraded to the securer SHA-256 hash function, which is what Bitcoin uses.

How does the BitTorrent Chain work?

The BTTC architecture comprises three layers that operate its cornerstone function of bridging assets between blockchains: the root contracts, validators and the BitTorrent Chain layer. 

• Root contracts layer: This consists of smart contracts used for things like staking, token mapping and funding transactions on major blockchains like Tron and Ethereum.
• Validator layer: This validates BTTC blocks and listens to and communicates events across blockchains.
• BTTC layer: The core block-producing layer that facilitates fast, cheap transactions and supports mapped assets from the root contracts layer.

Here’s an example of how it works for a user to bridge Ether (ETH) from the Ethereum blockchain to the BTTC blockchain:

• A user deposits cryptocurrency into a BTTC smart contract on the root contract layer. In this case, they deposit ETH on Ethereum.
• Once deposited, a transaction is triggered and broadcast to the validator layer.
• Once this transaction is validated, the BTTC core layer mints the respective amount of ETH on the BTTC blockchain.
• When the asset moves back in the opposite direction, the BTTC-ETH token is burned before the original ETH is released on the Ethereum blockchain. 

This functionality, combined with decentralized applications, has multiple use cases, including decentralized exchanges (DEXs), decentralized finance (DeFi), gaming and non-fungible token (NFT) facilitation.

Did you know? In 2018, Tron founder Justin Sun bought BitTorrent for $120 million, and the project continues to service its 100 million users around the globe.

The benefits of using BitTorrent Chain

Here are the advantages offered by BitTorrent Chain:

• Fast transactions: Blocks are produced every 2 seconds, giving nearly instantaneous BTTC transaction speed.
• High throughput: The block speed also makes it capable of handling up to 7,000 transactions per second (TPS).
• Crosschain compatibility: BTTC integrates with a growing number of blockchains, including Tron, Ethereum and BNB Smart Chain.
• Low fees: The average transaction fee is less than $0.01.
• Versatile: It can be used to facilitate a number of functions, such as fast DEX trading, DeFi asset bridging and low-cost gaming transactions.

BTT Token: What is it, and how to use it?

While BitTorrent Chain and BitTorrent are separate platforms, they do have certain functions that tie them together, most importantly, BitTorrent cryptocurrency (BTT).

BitTorrent Token, explained

BTT is a TRC-20 token, which is a fungible token issued on the Tron blockchain to implement in smart contracts and decentralized applications (DApps) in the BitTorrent ecosystem. It is the native token on the BTTC network and is used to pay transaction fees, making it foundational in powering the blockchain. 

Adding to this, users can stake BTT to become a validator via proof-of-stake (PoS) and have a say in BitTorrent chain governance.

The token is used across multiple BitTorrent DApps and integrates into the original BitTorrent peer-to-peer network, including its File System and Speed features. Notably, BitTorrent speed allows users to get faster download speeds and BTT token rewards. 

Enabling BitTorrent Speed means downloaders have the option to provide tokens to uploaders in exchange for faster download speeds. This incentive gives uploaders a reason to seed files longer and commit bandwidth to the network.

How to buy BTT

You can buy BTT following exchange-specific steps. But here are the common phases you will go through:

1. Register an account on a reputable exchange. You’ll need to provide a government ID and pass Know Your Customer (KYC) checks.
2. Deposit funds into your account. This could be fiat currency via credit card or bank transfer. 
3. Use your funds to buy or trade for BTT on the exchange platform. 
4. Withdraw your BTT to store it in your chosen crypto wallet.

Did you know? The total number of BTT miners exceeds 8 million and over 450 million unique wallet addresses, the bulk of which are located in North America and Europe. 

How to use BitTorrent Chain

You can start using the BTTC directly on the project’s website.

• From here, you can launch the web app and connect your cryptocurrency wallet. TronLink and MetaMask are both integrated into the app.
• Next, you can choose to bridge, stake or convert your assets as required. 
• To bridge a token, you’ll need to select your “From” and “To” networks (for example, from Ethereum to BTTC) and the amount you’d like to send. Then, confirm the transaction in your wallet.
• BTTC staking annual percentage yields (APYs) can reach 17%. Simply connect your wallet and confirm the amount you’d like to stake.
• The 1:1 converter allows you to easily swap BTT_e (the Ethereum-based version of BitTorrent) to BTT (the native BitTorrent token) and vice versa. This process is straightforward, with no need for complicated steps or transactions. In just a few clicks, you can convert between these two token versions, ensuring that your assets are readily available on either the Ethereum or BTTC network, depending on where you need them. 

Developers can start working with the BTTC by building DApps or mapping assets to the blockchain. This can be done by accessing the dev portal and GitHub.

Is BTT a good investment?

The BTT token launched in 2019 and has grown a strong user base to become a top 100 cryptocurrency, often sitting with a market capitalization of over $1 billion. 

Deciding whether it is a good investment depends on your personal investment goals and strategies along with careful BTTC technical analysis of the BitTorrent Token history. 

The BitTorrent Chain’s future in the crypto space

As the blockchain and DeFi ecosystem continues to evolve, BTTC’s role in connecting and scaling becomes all the more important. Its ability to deliver seamless asset transfers across smart blockchains positions it as a major player in developing Web3 applications and even decentralized physical infrastructure (DePIN). 

As the DeFi space grows, it is likely that BitTorrent Token partnerships with DApps will also expand to see the project thrive in the future.  

The innovative BTTC approach and collaboration with the Tron Foundation make it a key contributor to the future of the industry, driving forward more efficient and integrated blockchain solutions.