Getting to know Wrapped Bitcoin (WBTC)

Bitcoin is the world’s first, largest, and most well-known crypto asset. Since its creation over 10 years ago, the underlying technology has largely remained the same. However, innovations have advanced exponentially in other parts of the blockchain ecosystem with the fast-rising world of Decentralized Finance (DeFi) being a prime example.

WBTC tries to combine the best of both worlds by bringing the value and liquidity of BTC and making it usable in the world of DeFi. In other words, uniting and integrating 2 of the largest projects (blue chips) together.

https://medium.com/tokenize-xchange/the-blue-chips-of-crypto-d9a74487d4cf

In this article, we will be discovering how WBTC is bringing Bitcoin into the Ethereum network and what it does!

What is WBTC?

So, what is WBTC all about? WBTC stands for Wrapped Bitcoin and is simply an ERC20 token backed 1:1 by BTC and held at BitGo Trust, and the other underlying holdings are verifiable here.

WBTC brings the liquidity of Bitcoin to the Ethereum ecosystem. Being an ERC20 token makes the transfer of WBTC faster than normal BTC (as it is on the Ethereum network instead of the Bitcoin network), but the key advantage of WBTC is its integration into the Ethereum network — dapps, wallets, and smart…