> For the complete documentation index, see [llms.txt](https://docs.motif.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.motif.finance/specification/what-is-in-kind-remap/in-kind-vs-wrapped.md).

# 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.          |