Wrapped Bitcoin (WBTC)
- Category: Wrapped Token
- Coin Launched: January, 2019
- Resources: White Paper
- Official Website: Wrapped Bitcoin
- Reddit: Wrapped Bitcoin
About Wrapped Bitcoin
Wrapped Bitcoin is an ERC-20 token on the Ethereum block chain that represents Bitcoin. Each WBTC is backed 1:1 with Bitcoin.
Wrapped Bitcoin allows for Bitcoin transfers to be conducted quicker on the Ethereum block chain and opens up the possibility for BTC to be used in the Ethereum ecosystem.
WRAPPED BITCOIN History / Information / Buying / Staking
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WRAPPED BITCOIN HISTORY
Wrapped BTC, or WBTC, was launched on January 30, 2019, and it is the first ERC-20 token that is backed by Bitcoin at a 1:1 ratio. In some way, it can be identified as a stablecoin though it is disputable if Bitcoin can be called a "stable" asset. WBTC represents a custodian model of the Bitcoin tokenization.
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HOW WRAPPED BITCOIN WORKS
Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum blockchain. A key advantage of WBTC is its integration into the world of Ethereum wallets, dapps, and smart contracts. Through a WBTC partner, 1 Bitcoin can be converted to 1 Wrapped Bitcoin, and vice-versa. WBTC was created to allow Bitcoin holders to participate in decentralized finance (“DeFi”) apps that are popular on Ethereum.
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BENEFITS OF USING WRAPPED BITCOIN
Some of the benefits of using Wrapped Bitcoin are:
LIQUIDITY
Another significant advantage wBTC brings to the market is greater liquidity. The Ethereum ecosystem is diverse and spread out. This distribution of funds can create a scenario where DEXs (decentralized exchanges) and other platforms lack the necessary liquidity to function optimally.
SCALABILITY
Scalability is another major advantage gained from wrapping your Bitcoin. Since wrapped tokens exist on Ethereum’s blockchain, rather than Bitcoin’s directly, transactions conducted with wBTC are faster and cost less. Additionally, you have more transaction and storage options.
NEW FUNCTIONALITIES
Wrapped BTC provides users with more functionality compared to regular BTC. For example, wBTC can leverage Ethereum’s robust smart contracts.
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CAN YOU STAKE WRAPPED BITCOIN
Yes you can stake wrapped bitcoin CoinList allow you to automatically earn rewards by staking wBTC in your network wallet.