Spotlight on Poloniex: Bitcoin x TRON Deposit.
Bitcoin on TRON
Now we all have an idea about Poloniex Exchange and the information about running campaigns on it of Bitcoin x TRON Net Deposit. But do you know exactly what and why deposit Bitcoin on Tron?
In this post, I have tried to explore the below points.
- What is Bitcoin on Tron through Poloniex.com?
- Why it is important to Bitcoin on Tron?
- What are the benefits of Bitcoin on Tron?
Poloniex.com is the first place where you can acquire BTC on TRON.
Customers can use a new Swap feature to exchange their Bitcoin to BTCTRON for free directly from within their Poloniex Wallet.
BTCTRON is a type of wrapped Bitcoin token that exists on the TRON blockchain. You can use BTCTRON to send Bitcoin on the TRON blockchain. On Poloniex, you will always be able to redeem BTCTRON 1:1 to the value of Bitcoin (BTC).
BTCTRON is the first implementation of a multi-chain wallet for crypto assets. customers can now exchange other crypto assets from within the same wallet.
| A wrapped token is an asset hosted on the Ethereum blockchain with a price that is the same as another underlying asset, even if it’s not on the same blockchain or on a blockchain at all. |
A wrapped token is an ERC-20 token with a value identical to another asset that it represents, either through a smart contract or by being backed one-to-one with the underlying asset.
Wrapped Bitcoin, for instance, is a token worth the same as one BTC at any given moment, as a smart contract algorithm reproduces its price in real-time and regulates the underlying fund with supply and demand information gleaned from user transactions. In exchange for their money, wrapped token users get an equivalent amount of value “wrapped up” in an asset that’s more easily mobilized by decentralized applications (DApps).
As mentioned above Poloniex.com is the first exchange wherein you can deposit your Bitcoin on Tron.
Now, when you try to deposit BTC under the Poloniex wallet, you will also get the option to deposit on Tron, as below.
There are no fees associated with swapping BTC to BTCTRON or BTCTRON to BTC.
The contract address for BTCTRON is TN3W4H6rK2ce4vX9YnFQHwKENnHjoxb3m9. Source
With the rise in transaction fees, it has become extremely difficult to used bitcoin as our digital assets even though it is considered the king of all the digital currency. This problem can be easily solved by called Wrapped Bitcoin(WBTC).
| Ethereum blockchain which makes this thing possible. WBTC under the ethereum blockchain act as a connection bridge between the Bitcoin and DeFi ecosystem. |
The reason behind Wrapped Bitcoin is to capture the benefits that can come from the tokenization of the Bitcoin cryptocurrency, such as integrating Bitcoin’s liquidity with Ethereum-based decentralized applications (dapps) and decentralized exchanges.
Wrapped Bitcoin can also be considered as being a DeFi (decentralized finance) project because capturing Bitcoin’s liquidity on the Ethereum blockchain could facilitate the wider adoption of Ethereum-based DeFi applications that operate in areas such as lending, decentralized exchanges, payments.
Increased transaction speeds – assets that are tokenized can benefit from fast transaction execution. For example, a transaction that is executed with Wrapped Bitcoin, that utilizes the Ethereum blockchain as the transfer medium, would execute faster on the Ethereum blockchain than the Bitcoin blockchain.
Usability – Wrapped Bitcoin is a token that satisfies the ERC20 technical standard, a standard that has seen its adoption by numerous exchanges, dapps, and wallet providers in the ecosystem.
Greater liquidity – the digital asset of choice when it comes to trading ERC20 tokens, or interacting with dapps, is Ethereum. However, Bitcoin possesses significantly more liquidity than Ethereum, thus, introducing a tokenized Bitcoin to the Ethereum blockchain, such as Wrapped Bitcoin, serves as an opportunity to introduce greater liquidity when trading ERC20 tokens or interacting with dapps.
| As an Algorithmic method, smart contracts are used to control the supply and demand of the token, so that its price can be kept in line with the asset that is backing the digital token. |
What Is the Status about this new Project Bitcoin on Tron
TRON network has reached 3,000 wrapped Bitcoins on its network.
Poloniex.com was the first exchange to support Bitcoin on Tron – BTCTRON, a type of wrapped Bitcoin on the TRON blockchain.
This Bitcoin version can also be used for yield farming allowing users to make passive income on TRON’s DeFi platforms. Bitcoin on Tron blockchain is beneficial for those yield farmers who want the value of BTC with the efficiencies of the Tron network.
Last to say on this new Project
Wrapped Bitcoin(WBTC) will be more user friendly because only a simple ERC20 wallet is all we need to store the WBTC. This project all also gives room for those who only hold BTC to join the DeFi Revolution.
Information Sources:-
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