renBTC (RENBTC) is an ERC-20 digital asset backed by Bitcoin (BTC) in a 1:1 manner.
Users can generate renBTC by sending BTC to the RenVM address on the Bitcoin blockchain. The user's BTC will be locked in this address, and renBTC will be minted into the designated wallet on the Ethereum blockchain.
Instead of storing BTC in a centralized or trusted escrow setup, RenVM stores BTC in a decentralized network of nodes called Darknodes, which require 100,000 REN tokens to run.
A user can redeem his BTC by burning renBTC on Ethereum. After confirming the burning of the renBTC token, the locked BTC will be released to the designated Bitcoin address.