In-kind vs wrapped

In-kind Bitcoin delegation represents a paradigm shift from traditional wrapped solutions. Unlike wrapped Bitcoin, which requires locking native Bitcoin in a centralized or semi-centralized custodian to issue a synthetic token for cross-chain interactions, in-kind delegation ensures that users retain full control of their Bitcoin. This approach eliminates the need for trusting bridges for a peg-out and reduces vulnerabilities associated with smart contract exploits or custodial risks.

Feature	In-kind	Wrapped
Bitcoin Ownership	User retains full control of the asset	Peg-out is processed by a custodian
Cross-chain flexibility	Direct delegation via BitcoinPods	Requires rewrapping or conversion for cross chain
Security Model	Bonded security	Trusted custodian
Decentralisation	Permissionless. Anyone can deploy a BitcoinPod and join the system.	Single entity responsible for mint/burn.