Review on Wrapped Bitcoin by Wisdom BOATENG
Bitcoin tokenization on the Ethereum blockchain, a pure wonder
What is WBTC?
In recent months, the taste for decentralized finance has also affected Bitcoin holders. However, to invest in these tokens, we must first transform our cryptocurrencies into tokens compatible with the Ethereum blockchain. This method is done through specific protocols like WBTC, the most popular by the way. Thus, in recent months, the tokenization of Bitcoin has broken records and reached the milestone of more than 2 billion US dollars.
My opinion on WBTC:
WBTC is yet another new innovation that connects BTC to the Ethereum blockchain. This unique financial instrument offers traders, institutions and Dapps a bridge to the Ethereum network while conversing about Bitcoin. The aim is to harness the value of the price of Bitcoin and combine it with the versatility of Ethereum. Awesome isn't it? One very attractive thing in the blockchain industry is the particular succession of innovations in order to make the technology more accessible and much more adopted. Note that this innovation brings enormous benefits to DeFi sectors, such as significant liquidity, the Ethereum ecosystem becomes diversified and broad, etc ...
Pros
- The wBTC integrates the liquidity of BTC into the flexibility of the Ethereum ecosystem.
- WBTC offers users more features than regular BTC.
- Staking is one of the most popular features of DeFi. Users who convert their BTC to wBTC can take advantage of these next generation protocols.
Cons
- One of the main concerns comes from the trust-based models of the early wBTC platforms. The platform may somehow unlock real BTC and leave token holders with fake wBTC.
