What is Wrapped Bitcoin (wBTC)?

in SteemLeo11 months ago

Wrapped Bitcoin (wBTC) is an Ethereum-based token that represents 1 Bitcoin. The price of 1 wBTC is pegged to the price of 1 BTC. If Bitcoin is trading for $9,200 - for example - then wBTC is also trading for around $9,200.

The https://wbtc.network/ brings the promise of bridging the power & scope of Bitcoin with the flexibility of the Ethereum network.

We archived this guide on LeoPedia: https://leopedia.io/what-is-wrapped-bitcoin-wbtc

Bitcoin is the largest, most robust and decentralized computing network in the world. It’s also the highest market cap cryptocurrency by a large margin. There is no question that having access to that kind of value could be incredibly fruitful for DeFi and other crypto projects.

Ethereum has the largest pool of developers and projects on the bleeding edge of Decentralized Finance and other initiatives aimed at bringing real products & use cases into the hands of the masses.

Following that logic, it makes perfect sense to bridge these two blockchains together. To bring the power and market cap of Bitcoin into the flexibility and protocols of Ethereum.

Who Invented wBTC?

Wrapped Bitcoin was launched in January 2019 as a joint effort between crypto projects Kyber, Ren, and BitGo.

Since then, a DAO (decentralized autonomous organization) has been established to manage the wBTC project. Many other Ethereum-based projects have taken up the initiative and backed the project in various ways.

Archived on LeoPedia

Posted Using LeoFinance