What is Wrapped Bitcoin in Crypto? — adidaswilson

Wrapped Bitcoin (WBTC) is a cryptocurrency that represents Bitcoin on the Ethereum blockchain. It is an ERC-20 token, which means it is built using Ethereum smart contracts and follows the Ethereum blockchain’s rules and standards. WBTC is designed to bring the liquidity and functionality of Bitcoin to the Ethereum ecosystem, enabling users to leverage the benefits of both blockchains.

Bitcoin and Ethereum are two of the most popular and valuable cryptocurrencies in the market. While Bitcoin is primarily used as a store of value and a medium of exchange, Ethereum is a smart contract platform that allows developers to build decentralized applications (dApps) and run smart contracts. Ethereum’s ecosystem is more flexible and programmable than Bitcoin, which means it can support a wide range of use cases and applications.

Wrapped Bitcoin bridges the gap between Bitcoin and Ethereum by allowing Bitcoin holders to use their coins on the Ethereum blockchain. It provides a way to unlock the value of Bitcoin and use it in the Ethereum ecosystem, where users can leverage its programmability and flexibility to create new financial products and services.

The process of wrapping Bitcoin involves depositing Bitcoin into a custodian, who issues an equal amount of WBTC on the Ethereum blockchain. The custodian holds the…