WBTC converts Bitcoin to the ERC20 format, allowing for the creation of Bitcoin smart contracts. This allows writing smart contracts that incorporate Bitcoin transactions easier.
Table of Contents
Wrapped Bitcoin (WBTC) is a tokenized Bitcoin (BTC) that operates on the Ethereum (ETH) network.
WBTC complies with ERC-20, the Ethereum blockchain’s core compatibility standard, letting it completely integrate into the ecosystem of decentralized exchanges, crypto lending services, prediction markets, and other ERC-20-enabled decentralized finance (DeFi) apps.
WBTC is likewise backed by Bitcoin at a 1:1 ratio through a network of constantly regulated merchants and custodians, guaranteeing that its price is always matched to Bitcoin and allowing users to transfer liquidity independently and autonomously between the BTC and ETH networks.
Wrapped Bitcoin was announced on October 26, 2018, and it became live on January 31, 2019.
Wrapped Bitcoin (WBTC) is an Ethereum-based ERC-20 currency that symbolizes Bitcoin (BTC). WBTC’s connectivity with Ethereum wallets, dapps, and smart contracts is a significant benefit.
1 Bitcoin can be changed to 1 Wrapped Bitcoin through a WBTC partner, and vice versa. WBTC was intended to allow Bitcoin users to engage in Ethereum-based decentralized finance (“DeFi”) apps. The BTC that underpins WBTC is publicly verifiable thanks to a “proof of reserve” method that validates the 1:1 relationship between produced WBTC tokens and Bitcoin held by custodians. The WBTC DAO, which now has over 30 members, is responsible for the upkeep of WBTC.
The Ethereum ecosystem, which includes decentralized exchanges (DEXs) and financial apps, gains more liquidity with WBTC. The majority of Bitcoin trading volume now takes place on controlled exchanges. WBTC changes that by introducing Bitcoin’s liquidity to DEXs and allowing token trades using Bitcoin.
The Wrapped Tokens project, of which WBTC is a part, was not formed by a single entity, but rather by three: BitGo, Kyber Network, and Ren.
BitGo is digital asset custody, trading, and financial services startup co-founded in 2013 by American computer scientist and entrepreneur Mike Belshe. BitGo is not just one of the developers of WBTC, but it is also its original custodian – the company that owns WBTC tokens and the keys necessary to create more.
Kyber Network is an on-blockchain liquidity technology that allows various cryptocurrency tokens and DeFi apps to be integrated. It is situated in Singapore and was created in 2017 by Loi Luu, Victor Tran, and Yaron Velner. Kyber Network, which co-founded WBTC with Ren, continues to function as a merchant on the network, minting and burning WBTC tokens to preserve the 1:1 token-to-BTC reserve ratio.
Ren, like Kyber, focuses on cross-blockchain integration of bitcoin assets and DeFi applications with solutions like RenBridge, RenVM, and others. Taiyang Zhang and Loong Wang launched it in 2017.
Bitcoin has a significant user base and a liquidity pool worth several dozen billion dollars since it is the oldest and largest cryptocurrency on the market. However, by today’s standards, its blockchain capability is somewhat primitive.
Unlike Bitcoin, Ethereum was designed from the bottom up to accommodate more complex use cases through the use of smart contract technology, spawning a new sector known as “decentralized finance.”
Ethereum and its derivatives provide users with advanced financial tools like lending and insurance that do not need the use of trusted middlemen.
WBTC offers complete integration of a Bitcoin-like asset into this advanced ecosystem of financial decentralised apps by “wrapping” BTC in the ERC-20 standard, bringing along the huge liquidity associated with the BTC market.
Furthermore, Wrapped Bitcoin simplifies the workload for Ethereum-based exchanges, wallets, and payment services: instead of running two distinct nodes for the ETH and BTC networks, companies can handle WBTC activities with only an Ethereum node.
Finally, when compared to bitcoins, the Ethereum blockchain’s quicker average blocktime — around 15 seconds vs. 10 minutes — enhances the speed with which WBTC may be traded.
Uniswap, Binance, OKEx, Huobi Global, and Kyber Network are the leading exchanges where you can buy, sell, and trade WBTC right now.
WBTC coins are protected by Ethereum, the parent blockchain on which they run. In turn, the Ethash proof-of-work function, a member of the Keccak family of hash functions, protects ETH.
No. There is no direct method to purchase WBTC using cash. You can, however, utilize markets such as LocalBitcoins to first acquire BTC, and then complete the remainder of the procedures by moving your BTC to the appropriate AltCoin exchangers.
Yes, in reality, Europe is one of the easiest countries to acquire cryptocurrency in general. There are also online banks where you can create an account and send funds to exchanges like Coinbase and Uphold.
Exchange inflows and outflows, technical and fundamental changes, the news cycle, and the overall economic climate are all variables that impact WBTC price and market cap.
Wrapped Bitcoin Official website – https://wbtc.network/
Wrapped Bitcoin Twitter – https://twitter.com/WrappedBTC
Introduction The beginning of blockchain technology has started a new period for different business areas,…
Cryptocurrencies rose from obscurity to making global headlines in just 15 years. Bitcoin is the…
Online gambling has become a booming industry in recent years, witnessing an influx of players…
The online gambling landscape is witnessing a seismic shift with the integration of blockchain technology,…
Dive into the Digital Gold Rush: Bitcoin, the New Investment Frontier!
Riding the crypto wave, Bitcoin becomes global zeitgeist!