Review on Wrapped Bitcoin by Fanuel PORPORTY
What is Wrapped Bitcoin WBTC?
Wrapped Bitcoin refers to the compatible version of Bitcoin with the ERC-20 standard. Thus, the WBTC is an ERC-20 token that will always follow the price of Bitcoin. Bitcoin as we know it is not compatible with the ERC-20 standard and cannot be exchanged directly for other ERC-20 tokens in a decentralized manner without a trusted third party or through complex technical devices. WBTC's mission is to provide great liquidity, and to improve all decentralized applications. With Wrapped BTC, traders can benefit from increased liquidity and participation by allowing Bitcoin enthusiasts to be integrated into the ecosystem as well.
Remember that WBTC transfers between users have no direct cost, with the exception of network costs which vary according to the solutions used. Thanks to WBTC partners, 1 Bitcoin can be exchanged for 1 Wrapped Bitcoin, and vice versa. Finally, using Wrapped Bitcoin allows BTC holders to continue to hold them as assets, while using their tokens in DeFI applications.
Pros
- With the Wrapped BTC a strong liquidity is added to the DeFi protocols
- The Wrapped Bitcoin (WBTC) is a project that has been launched by several industry players, which provides legitimacy
Cons
- None
