Wrapped Bitcoin (WBTC)
Wrapped Bitcoin (WBTC) is a type of cryptocurrency that is created by wrapping Bitcoin (BTC) on the Ethereum blockchain. It is an ERC-20 token that is backed 1:1 with Bitcoin, meaning that one WBTC is equal to one BTC. WBTC was created to bring the liquidity of Bitcoin to the Ethereum network, allowing users to use Bitcoin in Ethereum-based decentralized finance (DeFi) applications. WBTC is managed by a consortium of custodians, merchants, and market makers, who are responsible for minting and burning WBTC tokens.
History of Wrapped Bitcoin
Wrapped Bitcoin was created in January 2019 by BitGo, Kyber Network, and Ren. It was the first ERC-20 token to be backed 1:1 with Bitcoin, and it was designed to bring the liquidity of Bitcoin to the Ethereum network. Since its launch, WBTC has become one of the most popular tokens on the Ethereum network, with over $2 billion in total value locked (TVL).
Comparison Table
| Cryptocurrency | Blockchain | Decentralized |
|---|---|---|
| Bitcoin | Bitcoin | Yes |
| Wrapped Bitcoin | Ethereum | Yes |
Summary
Wrapped Bitcoin (WBTC) is a type of cryptocurrency that is created by wrapping Bitcoin (BTC) on the Ethereum blockchain. It is an ERC-20 token that is backed 1:1 with Bitcoin, meaning that one WBTC is equal to one BTC. WBTC was created to bring the liquidity of Bitcoin to the Ethereum network, allowing users to use Bitcoin in Ethereum-based decentralized finance (DeFi) applications. For more information about WBTC, you can visit the official website at https://www.wbtc.network/.
See Also
- Bitcoin
- Ethereum
- ERC-20
- Decentralized Finance (DeFi)
- Stablecoins
- Cryptocurrency Exchanges
- Cryptocurrency Wallets
- Smart Contracts
- Mining
- Blockchain
