What is Wrapped Bitcoin (WBTC)and what type of token is this

Wrapped Bitcoin (WBTC)

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What is WrappedBitcoin (WBTC)and what type of token is this

A wrapped cryptocurrency is an ERC-20 token that has the exact same value as another asset. Value can be pegged to the underlying asset through a 1-to-1 backing or through a smart contract negotiating a stable price. Wrapped Bitcoin is anERC-20 token that represents one bitcoin and can be used in dApps. With WBTC, users can deploy bitcoin in the Ethereum ecosystem, while otherwise they would not be able to do so.

Decentralized applications (dApps) can process wrapped token transactions faster than unwrapped versions because there is no need to compute across different blockchains, which is difficult. Only a small gas (ETH) fee is required to transact on Ethereum using the wrapped token. There are currently a variety of wrapped cryptocurrencies, including a handful of stablecoins such as Tether (USDT) and Coinbase's United States Dollar Coin (USDC).

The private cryptocurrency Z cash also has a wraparound token. And other tokens are increasingly coming out with wrapped versions in an effort to remain relevant and usable during the period of DeFi adoption. Launched in January 2019,WBTC was designed to bring the liquidity of bitcoin to Ethereum. In the18 months following its launch, users converted over $800 million worth ofbitcoin into WB

Wrapped BTC, Cryptocurrencies, tokens, Ethereum, USDC, USDT, dapps, DeFi, Wrapped crypto

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