Review on Wrapped Bitcoin by Yenkelys Barcenas
Wrapped Bitcoin. A true smart alliance.
This new alliance is a win to win proposal, both for users and for companies. Wrapped bitcoin (WBTC) is the first ERC20 token backed proportionally with Bitcoin (1: 1) through a network of automatically monitored traders and custodians, which standardizes Bitcoin to the ERC20 format, creating smart contracts for Bitcoin. This guarantees that its price remains linked to the price of Bitcoin and in this sense 1 WBTC in the Ethereum network has the equivalent value of 1 BTC in the Bitcoin network.
Its creators have highlighted that it is an asset developed mainly for traders, institutions and dapps, simplifying the management of the Wrapp currency with only the Ethereum node so that moving Bitcoin between exchanges becomes much faster and easier. To get this asset, users can access various exchanges both centralized and decentralized, which serve as traders in the Wrapped Bitcoin network, the trader verifies the identity of the user and subsequently the exchange is executed, with the user's Bitcoin being transferred to the traders and WBTC of merchant being transferred to the user.
Today the world of cryptocurrencies has migrated to decentralized DeFi platforms, which are based on ethereum in which Bitcoin is not operational, and in this case BTC investors cannot get involved unless they sell their crypto assets or buy others, so that WBTC becomes the business asset destined for the users of these two worlds that recognizes that the capitalization of Bitcoin is greater than that of Ethereum and at the same time assumes that with Bitcoin, operations on decentralized platforms are limited. This project is very well thought out and with a guaranteed success guarantee, a Bitcoin compatible with the Ethereum chain, offers the power of one of the main cryptocurrencies to date (BTC) with the flexibility of an ERC-20 token useful on multiple platforms and for multiple operations.
Pros
- 1 WBTC on the Ethereum network is worth 1 BTC on the Bitcoin network.
- The use of WBTC allows faster and easier transactions compared to real bitcoins.
- It is not necessary to carry out conversions or currency exchanges, but with WBTC operations are carried out with only one Ethereum node.
- It allows the inclusion of Bitcoin in the Ethereum and smart contract ecosystems.
- The Bitcoin network brings liquidity to the Ethereum platform.
- Ethereum can leverage the capital of Bitcoin to fuel its growth and development.
- Gives users greater freedom of use.
Cons
- Nothing to say about negative aspects.
