Wrapped Bitcoin (WBTC) is a unique and innovative cryptocurrency. It combines the value and popularity of Bitcoin with the functionality and flexibility of Ethereum. Thus, WBTC opens up new functions for users and developers in the crypto ecosystem.
Understanding Wrapped Bitcoin (WBTC)
Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum network. Each WBTC token is equivalent to one BTC, which is stored by a special depository. WBTC tokens can be exchanged for BTC at any time through registered merchants.
The main goal of WBTC is to bring liquidity and interoperability between Bitcoin and Ethereum. With WBTC, Bitcoin users can access various decentralized applications (dApps) running on Ethereum, such as lending platforms, exchanges, yield farming, and more. In contrast, Ethereum users can leverage Bitcoin as the most trusted and valuable digital asset.
WBTC also allows developers to create dApps that take advantage of Bitcoin-specific features, such as its security, network, and community. In addition, WBTC can improve the efficiency and speed of Bitcoin transactions, which is limited by its conservative design.
WBTC was launched in January 2019 by BitGo, Kyber Network, and Republic Protocol, which later formed a Decentralized Autonomous Organization (DAO) called WBTC DAO. The WBTC DAO is responsible for managing the WBTC protocol and determining who can be the depository and trader of the WBTC. Currently, there are more than 30 WBTC DAO members, including leading crypto companies and projects such as MakerDAO, Compound, Aave, Uniswap, Curve, and others.
WBTC Price Follows BTC Price
The price of WBTC always follows the price of BTC, as both have a ratio of 1:1. If the price of BTC rises or falls, the price of WBTC will undergo the same change. However, there is a possibility of a small difference between the price of WBTC and BTC, due to factors such as demand and supply, transaction costs, and contractual risk.
WBTC's market capitalization is around $7.7 billion, making it the 12th largest crypto in the world. The daily trading volume of WBTC is approximately $206.8 million.
WBTC can be traded on various crypto exchanges, both centralized and decentralized. Some of the largest exchanges offering WBTC are Binance, Huobi Global, OKEx, Uniswap, and Sushiswap. WBTC can also be obtained through registered merchants, such as CoinList, AirSwap, KyberSwap, and RenBridge.
WBTC function
WBTC has great potential to increase adoption and innovation in the crypto ecosystem. With WBTC, users can harness the combined power of Bitcoin and Ethereum, which are two of the largest and most active blockchain networks today. WBTC can also help overcome some of the limitations and challenges faced by Bitcoin and Ethereum, such as scalability, fees, and compatibility.
Conclusion
Wrapped Bitcoin (WBTC) is an interesting and useful cryptocurrency, which connects two different worlds: Bitcoin and Ethereum. With WBTC, users can enjoy the value and popularity of Bitcoin, as well as functionality and flexibility on the Ethereum network.
WBTC could also open up new opportunities for developers to create dApps that take advantage of Bitcoin-specific features. On the other hand, WBTC also has challenges and risks that need to be aware of, such as trust, regulation, and adoption. WBTC is one of the crypto projects worth following and learning more about.
How to Buy Crypto on Bittime
You can buy and sell crypto assets in an easy and secure way through Bittime. Bittime is one of the best crypto applications in Indonesia that has been officially registered by Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. In addition, also make sure that you have enough balance by depositing some funds into the wallet. For your information, the minimum asset purchase at Bittime is Rp10,000. After that, then you can make a crypto asset purchase in the application.
Monitor the price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Buy Bitcoin vs Spot Bitcoin ETF, Which One is More Profitable?
The Important Role of Ethereum Virtual Machine (EVM) in the Ethereum Ecosystem
DISCLAIMER: This article is informational in nature and does not constitute an offer or solicitation to sell and buy any crypto asset. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices may change significantly from time to time and Bittime is not responsible for fluctuations in crypto asset exchange rates.
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