What is Wrapped Bitcoin?
Wrapped Bitcoin is a new type of cryptocurrency that is an ERC-20 token pegged to the price of Bitcoin (BTC) that is intended to bridge the gap between the traditional Bitcoin blockchain and the Ethereum blockchain. It's also known as a wrapped cryptocurrency with a one-to-one peg to the original BTC. Wrapped Bitcoin (wBTC) is an ERC-20 token that's backed by Bitcoin (BTC) on a 1:1 basis.
Goals of this cryptocurrency
The purpose of Wrapped Bitcoin is to bring the value that Bitcoin offers to the world of decentralized finance, dApps, and more. It helps to solve the problem of delivering liquidity to DeFi protocols. WBTC is also used to increase access to DeFi and allows Bitcoin holders to engage with Ethereum's ecosystem while retaining the value of their Bitcoin.
The technology behind Wrapped Bitcoin
Wrapped Bitcoin is a tokenized Bitcoin created on the Ethereum blockchain (ERC-20). It uses smart contract-based operations and has low transaction fees.
Wrapped Bitcoin compared to its competitors
Wrapped Bitcoin differentiates itself from competitors by being the first token that makes Bitcoin compatible on the Ethereum network. It's jointly launched by Kyber, Ren and BitGo in January 2019.
Wrapped Bitcoin price history
Frequently asked questions
Wrapped Bitcoin is an ERC-20 token pegged to the price of Bitcoin (BTC) that is intended to bridge the gap between the traditional Bitcoin blockchain and the Ethereum blockchain.
The purpose of Wrapped Bitcoin is to bring the value that Bitcoin offers to the world of decentralized finance, dApps, and more.
Wrapped Bitcoin is a tokenized Bitcoin created on the Ethereum blockchain (ERC-20). It uses smart contract-based operations and has low transaction fees.
Wrapped Bitcoin is an ERC-20 token pegged to the price of Bitcoin (BTC) that is intended to bridge the gap between the traditional Bitcoin blockchain and the Ethereum blockchain.
Wrapped Bitcoin (WBTC) is sometimes classified as a stablecoin because it mirrors the price of Bitcoin in the same way that USD stablecoins are pegged to the USD.
Wrapped Bitcoin allows Bitcoin holders to engage with Ethereum's ecosystem while retaining the value of their Bitcoin. It also increases access to DeFi and allows users to participate in trading, lending, yield farming, and other DeFi activities without requiring them to sell their Bitcoin holdings.
Yes, Wrapped Bitcoin (WBTC) is backed 1:1 by actual Bitcoin held in custody.
Yes, Wrapped Bitcoin (WBTC) provides users with access to trading, lending, yield farming, and other DeFi activities without requiring them to sell their Bitcoin holdings.
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