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"Empire is Not Built in a Day".
All those revolutions and innovations are not made on a single day. Besides all those massive changes or updation lies the continuous effort and progress making. Likewise, the revolution in the cryptocurrency world is bought by simple changes or innovations each day which boosts all the people in the cryptocurrency globe to look forward to better transformation.
We are now gathered here to look at one of the major entry in the crypto globe that makes greater sense in recent months, “Wrapped Bitcoin or WBTC “.
Unaware of the term WBTC?
Flow-through the article and at the end you will be energized with complete knowledge about wrapped Bitcoin. Without any Delay, Let us Trigger our discussion !!
Wrapped Bitcoin or WBTC is a new way of using Bitcoin on the Ethereum Blockchain.It is the new and popular version of the famous cryptocurrency Bitcoin tokenized for the use of the popular blockchain network, Ethereum.
In simple terms, Wrapped Bitcoin is nothing but the tokenized version of the famous cryptocurrency Bitcoin which runs on the Ethereum Blockchain network. Through this WBTC, we can bring the liquidity of Bitcoin to the Ethereum network.
The major use cases of WBTC lies in decentralized finance, shortly termed as DeFi.
According to Market Cap, the WBTC coin is Ethereum's 6th largest token and as of now, there is 116,885 WBTC recorded and which accounts for $1.58 billion. Thus WBTC coin is an ERC 20 token that is backed up with 1:1 BTC and held at Bitgo Trust and users can wrap and unwrap BTC through their CoinList wallet.
WBTC coin standardizes the Bitcoin to the ERC 20 format, creating smart contracts for Bitcoin on Ethereum Blockchain. Now users can wrap and unwrap BTC on the DeFi based DEX platforms which supports swapping of WBTC.
Not only WBTC, but all other wrapped token projects are also founded by a group of organizations such as BitGo, Ren, and Kyber Network. BitGo, the digital assets trading, and custody firm, Kyber Network,on-blockchain liquidity protocol, Ren, Cross-blockchain integration firm combined and introduced wrapped bitcoin for the integration of different crypto tokens and DeFi applications.
Listed here the advantages of buying or having wrapped BTC or wrapped tokens as a whole.
Many DeFi protocols like Dharma, Compound, MarkerDAO, and Kyber network allow for borrowing and lending of WBTC.
As many DeFi Dapps such as MakerDAO, Compound, and more are on Ethereum, which uses collateral. And Ethereum is lower in value than Bitcoin and which limits the growth of these protocols. Compared to BTC, the wrapped BTC will have the same level of security or trustless as it lies on the people and organizations. For increasing trust and transparency, WBTC undergoes regular audits and publishers all on-chain transactions for the Bitcoins and Ethereum blockchain networks.
Listed here are the steps to how to buy the WBTC?
Step 1 : Create an account on the CoinList.
Step 2 : Provide all the ID information and this platform involves 2FA for security purposes.
Step 3 : Deposit/Store Bitcoin on CoinList which is completely free.
Step 4 : After depositing bitcoin in CoinList wallet, you can wrap it to create WBTC.
Step 5 : Wrapping, just take one step, clicking the button "Wrap" on your BTC wallet.
There are several exchanges such as centralized and decentralized that both serve as WBTC merchants on the wrapped Bitcoin network. Listed here are some of the top cryptocurrency exchanges that offer Wrapped Bitcoin (WBTC Coin)
Let us look at the working of the WBTC token in detail.
Bitcoin is the most familiar and widely used cryptocurrency. Now the crypto world is moving fast in the adaptation of DeFi, the decentralized finance. Most of the DeFi protocols or dapps are built on the Ethereum blockchain network. Since there is no bridge that connects Bitcoin and Ethereum.
Thus, people who use Bitcoin suffer using DeFi platforms. To eliminate this issue, the concept of wrapped Bitcoin arises and which increases the liquidity of the DeFi protocols.
WBTC is thus a way of using Bitcoins in the Ethereum blockchain and DeFi products.
The amount of WBTC in circulation has been made public with the aim of making transparent along with the proof of Bitcoin and underlying assets being held securely in custody. Thus wrapped Bitcoins increase the way to use DeFi dapps and which in turn pays way for a better economy for decentralized finance.
A CoinList manages its own pool of Bitcoins and Wrapped Bitcoins, which makes the process of wrapping and unwrapping of BTC immediate. When the demand is high, CoinList affiliates can run out temporarily and the wrapping services will be paused until the pool is replenished.
When there is demand, you may choose to hold your funds to convert automatically. This situation can be addressed within 6 or 24 hours.
The wrapping and unwrapping of BTC to WBTC charges very low. The cost or fees to wrap or unwrap BTC ranges up to 0.25% trading fees on CoinList.
Not completely. Using WBTC is not completely safe and its usage involves its own risks and danger. The fundamental danger with all the WBTC is that the possibility that real bitcoin can be unlocked and released to someone else in the Bitcoin blockchain network and leave the token holder or WBTC holder to greater risks at some point of time, ie., make them as "fake" ER 20 BTC holding.
Wrapped Bitcoin has a greater future and this WBTC can be a profitable investment in recent days. If you are planning to invest in any cryptos in the nearer or future, then Investing in WBTC would be the best choice, as this WBTC coin is being the 6th largest Ethereum Coin in the crypto space. There are a lot more predictions on the price of WBTC in 2020- 2025. The current price of WBTC is 17094.30 USD, and the predicted price of WBTC is $45355.041714(114,341%).
This implies that if you invest $100 now, your current investment may be worth of $200.886 on 2021 November 28. The price of WBTC till 2025 is predicted and the price will more or less be the same as predicted.
Here is the prediction list of WBTC.
The future of WBTC is not on the Individual but on what developers build using WBTC. With this permissionless ERC 20 token, WBTC becomes another building block for the DeFi applications and decentralized finance space. This WBTC has a greater scope among the DeFi products and DeFi product users. The future of WBTC is well explained by the DeFi product is TokenSets, which has created the products that make trade between WBTC or ETH automatically.
Thus WBTC and all other wrapped tokens aim to provide a way to use cryptocurrencies on cross-blockchain platform and which inturns increase the liquidity of DeFi protocols. Thus wrapped tokens being a way to bring better-decentralized finance globe.
Stay Tuned with us to know each update in the crypto world !!
Hey Peeps !! This is Anushya an enthusiastic and energetic individual who persists in the field of Blockchain and Cryptocurrency for more than 4 years. At present, surviving as a Business Consultant and Blogger at Bitdeal. I am fascinated towards the upcoming trends and technologies in the digital globe. Stay tuned with us to move forward with innovations in the crypto industry !!
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