Introduction to WBTC
What problem does WBTC solve?
Name: Wrapped Bitcoin
One amazing project that has been the focus of the deFi community lately is the Wrapped Bitcoin. Wrapped Bitcoin, or WBTC, has been the most successful project in the deFi category in terms of market capitalization, use in the sector, and community growth. The purpose behind Wrapped Bitcoin is very intriguing. It is a protocol that aims to bring the whole Bitcoin infrastructure under the covers of Ethereum. This means that users will be able to use Bitcoin while staying inside Ethereumâ€™s ecosystem.
Tom Heavey: Wrapped Bitcoin [$WBTC] Explained
What is WBTC
What does the cryptocurrency WBTC actually do?
WBTCs, as actual products are tokens based on ERC-20 standards. Each token is basically supported by a Bitcoin in a 1:1 parity. WBTC is a way to integrate Bitcoin, and therefore other cryptocurrencies, to their DeFi counterparts on the Ethereum blockchain. Before WBTC, there was no way for Bitcoin holders to participate in the DeFi space, as it only supports ERC-20 tokens. How things happened before was that users had to exchange their Bitcoin for Ethereum or any other ERC-20 token, and it required transferring their coins to and fro cryptocurrency trading exchanges and wallets. Altogether, it used to be an arduous task, and the users then were not owning Bitcoin, they were holding Ethereum. WBTC has made this process easier and much quicker. The legging into Ethereum from Bitcoin does not require these many steps and can be considered direct for an end-user.
Who is behind WBTC
What team is working to make WBTC successful?
Keyword: Wrapped Bitcoin
Keyword: ERC20 token
WBTC is a collaborative project of BitGo, Compound, MakerDAO, Kyber, and Ren.
It is being developed under the unanimous and collaborative efforts of many cryptocurrency organizations.