Bitcoin uses an entirely different address scheme than Ethereum Network. In order to determine the Avalanche address that corresponds to a Bitcoin address that provided collateral to the bridge, the Bridge Nodes recover the public key of the user wallet from the signed transaction on the Bitcoin network and use it to derive the Avalanche C-chain address. This way, the funds on both networks are controlled by the same private key or mnemonic phrase, and that secret never leaves the sole possession of the user’s wallet.

For a more in-depth read on how the Avalanche Bridge works, please read the following articles.

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