> For the complete documentation index, see [llms.txt](https://docs.stroom.network/stroom/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.stroom.network/stroom/introduction/why-stroom.md).

# Why Stroom?

Bitcoin lacks a native DeFi ecosystem, making **bridging** the only viable path for BTC holders to access decentralized financial applications. As of mid-2025, the BTC bridging market has grown to over **$35 billion**, with Bitcoin comprising **70% of the total value locked (TVL)** across all cross-chain bridges. Yet, **only \~2% of Bitcoin’s total circulating supply is currently bridged**, highlighting significant untapped potential for growth.

#### **The Problem**

There are two fundamental challenges with BTC bridging:

1. **Counterparty Risk**\
   Regardless of whether a bridge is managed by a centralized custodian, a permissioned federation, or a decentralized protocol, users face the risk that operators could **mint unbacked BTC, block withdrawals, or even misappropriate user funds**.
2. **Opportunity Cost**\
   Bridged native BTC is typically idle—**locked in smart contract or multisig cold storage without generating yield**, which makes it capital-inefficient in DeFi environments.

#### **Existing Solutions**

Current BTC bridges fall into four broad categories:

* **Centralized Bridges** – e.g., [WBTC](https://www.wbtc.network/), [BTCB](https://www.binance.com/en/blog/ecosystem/421499824684901264) (Binance Bridge)
* **Federated Bridges** – e.g., [LBTC](https://www.lombard.finance/) (Lombard), [solvBTC](https://solv.finance/) (Solv Protocol)
* **Network Bridges** – e.g., [renBTC](https://bridge.renproject.io/) (already shutdown Ren Protocol), [tBTC](https://tbtc.network/) (Threshold Network)
* **Trust-Minimized Bridges** – e.g., zk-based systems like [BitVM2](https://bitvm.org/bitvm2.html) and [Strata](https://www.stratabtc.org/)

Despite architectural differences, all of these solutions share two critical limitations:

* **They offer no economic guarantees** to cover user losses in the event of compromised operators.
* **They do not provide any native BTC yield** to the holders of the bridged asset.

#### **Stroom’s Solution**

**Stroom introduces `strBTC`**, a novel BTC bridge architecture that addresses both key limitations. It is the **only BTC bridge economically secured by restaking**, with slashing mechanisms in place to cover potential user losses caused by malicious operators. Additionally, `strBTC` is the **first yield-bearing BTC** that sources real, low-risk yield from native Bitcoin infrastructure—such as the Lightning Network and BitVM2—making it both secure and capital-efficient.