WBTC is an innovative addition to the popular cryptocurrency. Wrapped bitcoin is a method of transferring BTC to blockchain Ethereum.
Wrapped Bitcoin (wrapped bitcoin) is an ERC-20 token. Its goal is simple and straightforward - to provide liquidity to the first cryptocurrency in the Ethereum ecosystem, and hence DeFi.
What is wrapped bitcoin and how does it work?
For any user who startsuse BTC in decentralized financial applications, the most important disadvantage is the lack of a bridge connecting BTC to Ethereum. WBTC tokens solve this problem by providing BTC liquidity for other DeFi protocols.
Wrapped bitcoin means keeping the cryptocurrency in reserve through the BitGo trust. The amount of WBTC in circulation is publicly disclosed to ensure maximum transparency.
Wrapped Bitcoin - the bridge between Ethereum and BTC
The advantage of BTC is that it has a much higher market cap and liquidity than any other cryptocurrency on the market.
Despite the fact that DeFi pools accept manyaltcoins as collateral, the use of highly liquid tokens ensures that trades are faster and less vulnerable to volatility effects.
What are the benefits of WBTC?
The Biggest Advantage of Wrapped Bitcoinsis that it combines the strengths of Bitcoin and Ethereum. While Bitcoin has a huge user base and a huge pool of liquidity, Ethereum provides a powerful technology platform. Ethereum's most important service function is smart contracts, which facilitate complex transactions.
Connecting BTC to the Ethereum ecosystem alsosimplifies the work of exchanges, wallets and payment services. Typically, these services should run two separate nodes: one for BTC and one for ETH. Working with WBTC, you can only get the job done using the Ethereum node.
With the Ethereum blockchain as the backbone, WBTC transactions can also proceed much faster.
How Safe is WBTC?
The main WBTC blockchain is Ethereum, which also keeps WBTC secure. It is protected by Ethash's proof of work mechanism.
What is the WBTC token economy?
Announced October 26, 2018, Wrapped Bitcoinwas officially launched on January 31, 2019. WBTC does not follow a predetermined release schedule. Every time a user buys or sells their tokens for bitcoins using the merchant and custodian system, WBTC tokens are minted or burned automatically.
One wrapped bitcoin is always backed by onebitcoin. Therefore, the amount of WBTC in circulation is always equal to the amount of bitcoins in the BitGo Trust reserve. According to the latest available data, the amount of WBTC is over 94,000 tokens. The total value of these tokens exceeds $ 1 billion.
How to buy WBTC?
Many official sellers support bidding withWrapped Bitcoin. Some of these sellers force the buyer to go through KYC checks. If you would like to purchase WBTC anonymously, you can use decentralized exchanges.
To buy WBTC, you must first deposityour wallet using BTC. At the time of purchase, bitcoins are debited from the BTC wallet, and WBTC are credited to the WBTC wallet. There are two different wallets involved in the transaction.
Creating a relationship between majorCrypto protocols are a must for the entire DeFi economy to flourish. In this sense, WBTC is of great benefit by linking the two largest blockchains, Bitcoin and Ethereum.
WBTC or Wrapped Bitcoin was affordableover $ 3476 on February 5, 2019. By May 16, 2019, it climbed to a price of $ 8,238 and reached $ 12,954 by the end of June. At the end of 2019, it dropped to $ 7,429. Until August 2020, it remained below $ 10 thousand.
By August 9, 2020, each WBTC token wasavailable for $ 11,752. Its prices started to rise rapidly in November 2020 with the rise in the BTC price. At the moment, each WBTC is available for over $ 19,360.
WBTC is poised to become one of the most successfulcryptocurrencies in the Ethereum ecosystem. The combination of Bitcoin's liquidity and Ethereum's technological edge will help solidify Wrapped Bitcoin's position as one of the leading names in the cryptocurrency world. In addition, WBTC will move forward with the growth of both Ethereum and Bitcoin.
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