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sips/sip-028/sip-028-sbtc_peg.md

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@@ -44,20 +44,21 @@ This SIP outlines but does not describe in technical detail the workings of the
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## Introduction
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### Glossary
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| Term | Definition |
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|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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| **.sbtc contract** | A smart contract (or a collection of contracts) defining the sBTC token and functions related to it. |
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| **Deposit API** | A third-party API that communicates with the sBTC Signers via the sBTC Signer API. |
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| **SIP-10 Token** | A token on the Stacks blockchain that adheres to the fungible token standards outlined in [SIP-10](https://github.com/stacksgov/sips/blob/main/sips/sip-010/sip-010-fungible-token-standard.md). |
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| **Stacks Signer** | An entity that receives PoX payouts for stacking their STX tokens and actively participating in the Stacks protocol by signing mined blocks. |
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| **sBTC** | A SIP-10 token on the Stacks Blockchain that can be turned back into BTC on the Bitcoin Blockchain. 1 sBTC is equivalent to 1 BTC on the Bitcoin Blockchain. |
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| **sBTC operation** | A smart contract function call that initiates some action from the sBTC protocol. |
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| **.sbtc contract** | A smart contract (or a collection of contracts) defining the sBTC token and functions related to it. |
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| **sBTC Peg Wallet** | The single UTXO holding the entire BTC balance that’s pegged into sBTC. This peg wallet is managed and maintained by the sBTC Signers. |
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| **Stacks Signer** | An entity that receives PoX payouts for stacking their STX tokens and actively participating in the Stacks protocol by signing mined blocks. |
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| **sBTC Signer** | An entity that will sign sBTC operations and communicate with contracts on the chain to make that feasible. This entity has partial access to spending the sBTC UTXO. |
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| **sBTC Signer Set** | The set of all sBTC signers. Each is registered with the .sbtc contract and these entities as a group collectively maintain the sBTC's Bitcoin UTXO. |
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| **sBTC Signer API** | An API exposed by the sBTC Signer that handles basic low-level commands. |
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| **Deposit API** | A third-party API that communicates with the sBTC Signers via the sBTC Signer API. |
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| **Wrapped Bitcoin** | A tokenized version of Bitcoin on another blockchain, designed to maintain a 1:1 peg with BTC. It acts as a derivative asset that allows Bitcoin to be utilized in various decentralized applications and ecosystems. |
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| **sBTC Signer Set** | The set of all sBTC signers. Each is registered with the .sbtc contract and these entities as a group collectively maintain the sBTC's Bitcoin UTXO. |
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| **Two-way peg** | A two-way peg allows assets to move between two blockchains in a trustless manner. This proposal focuses on implementing such a peg between Bitcoin and Stacks, enabling users to lock BTC on Bitcoin and mint an equivalent amount of sBTC on Stacks. |
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| **Wrapped Bitcoin** | A tokenized version of Bitcoin on another blockchain, designed to maintain a 1:1 peg with BTC. It acts as a derivative asset that allows Bitcoin to be utilized in various decentralized applications and ecosystems. |
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## Problem Statement
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