SatsFlux employs a multi-layered architecture designed for security, scalability, and interoperability. The system consists of four primary components working in concert to enable secure Bitcoin bridging across multiple blockchain networks.

The SatsFlux Bitcoin vault leverages Bitcoin's Taproot upgrade to implement a sophisticated multi-signature scheme using threshold cryptography. This design eliminates single points of failure while maintaining the security guarantees of the Bitcoin network.

Technical Implementation

// Threshold signature verification pseudocode
function verifyThresholdSignature(
  message: bytes,
  signature: SchnorrSignature,
  publicKeys: PublicKey[],
  threshold: number
): boolean {
  // Aggregate public keys using MuSig2
  const aggregatedKey = muSig2KeyAgg(publicKeys);
  
  // Verify Schnorr signature
  return schnorrVerify(message, signature, aggregatedKey);
}

The SatsFlux bridge operates through a carefully orchestrated process that ensures the security and integrity of Bitcoin deposits while enabling seamless cross-chain transfers. The bridge maintains a 1:1 backing ratio between BTC and sBTC at all times.

Bridge Flow Process

SatsFlux deploys a comprehensive suite of smart contracts across supported blockchain networks. Each contract is optimized for its respective chain while maintaining consistent security and functionality standards.

SatsFlux implements multiple layers of security to protect user funds and maintain system integrity. Our security model addresses both cryptographic and economic attack vectors through comprehensive risk assessment and mitigation strategies.

The SatsFlux token serves multiple critical functions within the protocol ecosystem, including governance, security bonding, and fee distribution. With a fixed supply of 500 billion tokens, the economic model is designed to align stakeholder incentives with protocol security and growth.