Nomic is a new blockchain which runs in parallel to the Bitcoin blockchain, allowing decentralized financial primitives which use BTC as their native asset.
The project is currently in testnet phase, and the network reserves only use testnet Bitcoin.
NBTC is the token backed 1-to-1 by BTC held in the network’s reserves.
That is, Alice may deposit 1 BTC to gain 1 NBTC on the sidechain. She may then transfer her 1 NBTC to Bob instantly, securely, and for near-zero fees. Bob can use this 1 NBTC to withdraw 1 BTC from the sidechain’s reserves at any time.
This scheme makes the Nomic sidechain an ideal layer 2 scaling solution for Bitcoin as a payment network.