Review on Wrapped Bitcoin by onur bln
Wrapped Bitcoin
WBTC is compatible with ERC-20, the Ethereum blockchain's core compatibility standard - ensuring the latter is fully integrated into the ecosystem of decentralized exchanges, crypto lending services, prediction markets, and other ERC-20 enabled decentralized finance (DeFi) applications. .
WBTC is also supported 1: 1 by Bitcoin through a network of automatically monitored merchants and custodians, ensuring that its price is always pegged to Bitcoin and allows users to transfer liquidity between BTC and ETH networks in a decentralized manner. autonomously.
Wrapped Bitcoin was first announced on October 26, 2018 and officially launched on January 31, 2019.
Due to being the oldest and largest cryptocurrency on the market, Bitcoin could have a large user base and a liquidity pool of several dozen billion dollars. However, blockchain functionality is relatively straightforward by modern standards.
Unlike Bitcoin, Ethereum was built from the ground up to support more advanced use cases by leveraging the technology of smart contracts, leading to an entire industry called "decentralized finance".
Ethereum and products derived from it offer their users advanced financial tools such as lending and insurance that do not rely on reliable intermediaries.
By "wrapping" BTC to the ERC-20 standard, WBTC brings with it the enormous liquidity associated with the BTC market by providing the full integration of a Bitcoin-like asset into this advanced financial decentralized applications environment.
Additionally, Wrapped Bitcoin significantly simplifies the job for Ethereum-powered exchanges, wallets, and payment services: Rather than running two separate nodes for ETH and BTC networks, they can support WBTC transactions with just one Ethereum node.
Finally, the Ethereum blockchain's faster average block time - around 15 seconds - 10 minutes respectively - increases the speed at which WBTC is traded compared to real bitcoins.
Pros
- available from most sites
- low wage cut
- 7 years of history
- employees are experienced
Cons
- transactions can take a little long
