What is Wrapped Bitcoin (WBTC)? Details about WBTC

• Wrapped Bitcoin project overview
• What is Wrapped Bitcoin (WBTC)?
• Why Wrapped Bitcoin Was Established?
• Wrapped Bitcoin created to solve what problem?
• About WBTC
• What is WBTC?
• Advantages of WBTC
• Basic information about WBT
• How can I buy WBTC?
• Where to buy, sell and store WBTC
• WBTC project development team
• Wrapped Bitcoin FAQ
• summary

Wrapped Bitcoin is the representative of Bitcoin, making it easy to access new technology in the DeFi world. However, many people still do not know about this project and the WBTC token. What is Wrapped Bitcoin? What are the highlights of this project? Does the WBTC token have potential? Surely these are common questions when asked about Wrapped Bitcoin. So, let's join TraderH4 to learn details about Wrapped Bitcoin project, WBTC token and answer these questions. 

Wrapped Bitcoin project overview 

What is Wrapped Bitcoin (WBTC)?

Wrapped Bitcoin was born to help connect the two largest platforms in the market, Bitcoin and Ethereum. This means that Wrapped Bitcoin helps users transfer their BTC from the Bitcoin blockchain to the Ethereum blockchain. The purpose of this conversion is to help BTC expand its utility, operate efficiently and participate in the DeFi space of Ethereum (Wallet, Dapp, Smart Contract). 

Wrapped Bitcoin's WBTC token is a representative of Bitcoin, with a 1:1 ratio to BTC like the algorithmic Stablecoin. It can be said that this token has standardized Bitcoin into the ERC-20 format, creating smart contracts for Bitcoin, and at the same time breaking the barriers encountered by the largest cryptocurrency in the market. 

Why Wrapped Bitcoin Was Established?

As we all know, the father of BTC has been "hidden", so this blockchain platform is limited to the pioneering means of payment and investment assets in the cryptocurrency market. Meanwhile, other platforms have expanded the ecosystem for Dapp development, exploded in the DeFi array, but BTC still seems to have to stay out of this game. 

For this reason, the Wrapped Bitcoin development team decided to remedy this by becoming a bridge that makes the Bitcoin platform easy to integrate with the Ethereum network.

The appearance of Wrapped Bitcoin has brought the optimal solution for investors. Besides retaining the advantages of BTC, WBTC can also use the outstanding strengths of the Ethereum platform such as smart contracts, DeFi, Dapp and other features. However, Wrapped Bitcoin is not the only project. In addition to us, there is also imToken which is also a formidable competitor, also a bridge to bring BTC into the Ethereum space. 

The Wrapped Bitcoin project is a combination of the company Kyber Network, Ren and Bitgo. In addition, the project also receives the support of many other large companies/platforms such as Compound , Dharma, MakerDAO… Currently, the project is controlled by a decentralized autonomous organization (DAO) called WBTC DAO. .

Wrapped Bitcoin created to solve what problem?

Wrapped Bitcoin was born to solve two main problems of Bitcoin and its holders: solving transaction problems, breaking limits. 

• Transaction problems

As most of us know, Bitcoin has major downsides in terms of speed and transaction costs. Moreover, although the capitalization and value of BTC is quite large, it is still not effectively exploited. This massive inflow has yet to be pushed much to DeFi decentralized finance platforms. So the Wrapped Bitcoin connection between BTC and Ethereum has found a solution to this problem. 

• Limits on scalability

Bitcoin's blockchain platform is positioned as a peer-to-peer payment method and an asset to invest. So Bitcoin's ecosystem is also less diverse than Ethereum's. Therefore, the appearance of Wrapped Bitcoin broke this limit, helping BTC access smart contracts, Dapps, Wallets on the Ethereum platform. In addition, investors holding BTC also have more opportunities to increase profits in the DeFi market. Overall this is a “win – win” relationship with both Wrapped Bitcoin, Bitcoin and Ethereum. 

About WBTC

Thus, we have understood the overview of the Wrapped Bitcoin project. Below, we will learn about the original token of Wrapped Bitcoin, the advantages and disadvantages as well as important information of the WBTC token. 

What is WBTC?

The token of Wrapped Bitcoin is denoted as WBTC. This token is developed based on the Ethereum platform, according to the ERC-20 standard. WBTC is the representative of BTC in the Ethereum network, so this token has a 1:1 value ratio to Bitcoin. Of course, WBTC's transaction speed is also faster than BTC's and makes it possible to operate in the DeFi space. 

Advantages of WBTC

WBTC not only solves the problems of BTC but also leaves opportunities for investors to hold this token and the Ethereum ecosystem. 

• WBTC brings greater liquidity to decentralized exchanges (DEX) and financial applications in the Ethereum ecosystem. According to statistics, currently the majority of Bitcoin trading volume resides on centralized exchanges. Thus, the arrival of WBTC will change this, bringing massive inflows to decentralized exchanges (DEXs). 
• The WBTC token standardizes Bitcoin to Ethereum's ERC-20 standard. This has made the process of writing Bitcoin-integrated Smart Contracts easier than ever. 

Basic Information about WBTC

• Token name: Wrapped Bitcoin token
• Ticker: WBTC
• Blockchain: Ethereum
• Circulating Supply: 273.402 WBTC
• Total Supply: 273,402 WBTC (at the time of writing, this amount will also change as the amount of BTC changes)
• Total Value Locked (TVL) – Total Locked Value: $8.53,000,000

How can I buy WBTC? 

Besides buying directly on cryptocurrency exchanges today, users can buy this token from a number of vendors that officially support Wrapped Bitcoin, such as CoinList. However, the buying process here is different. First, the user needs to request the token from the merchant. The seller then performs KYC/AML procedures to verify the identity of the buyer. Ultimately, the two parties will swap their tokens for Bitcoin. That is, the buyer's Bitcoin goes to the seller and the seller.

Where to buy, sell and store WBTC

Up to now, WBTC is listed and supports buying and selling many large and famous exchanges in the market including the following names: Binance , HitBTC, FTX , FTX.US, Uniswap , Gate.io , Sushiswap , Huobi Global , Kraken , OKX , KuCoin , Quickswap , Bitstamp ... Supported trading pairs are also quite diverse such as WBTC/BTC, WBTC/USD, WBTC/ETH, WBTC/WETH, WBTC/XBT, WBTC/USDT …

WBTC project development team

BTC is the coin with the largest value and market capitalization, so Wrapped Bitcoin is not founded by individuals but is a joint project of three organizations: BitGo, Kyber Network and Ren.

• BitGo was founded in 2013 by American computer scientist and entrepreneur Mike Belshe. BitGo is an organization dedicated to providing financial services, trading and custody of digital assets. Besides being one of the developers of WBTC, BitGo also acts as the initial custodian holding WBTC tokens and key keys for minting more tokens according to the amount of BTC.

• Kyber Network is a liquidity protocol using blockchain technology. This protocol allows the integration of different coins/tokens on DeFi applications. Kyber Network was founded by Loi Luu, Victor Tran and Yaron Velner in 2017 and the company is headquartered in Singapore. 

• Similar to Kyber, Ren is a unique Republic Protocol (open protocol) that provides “inter-blockchain” liquidity generation through a decentralized “Dark Pool”. Ren was founded in 2017 by Taiyang Zhang and Loong Wang. Ren's goal is privacy for decentralized financial applications in the DeFi array. Some of Ren's famous solutions include RenBridge, RenVM...

Wrapped Bitcoin FAQ

Below are the frequently asked questions related to Wrapped Bitcoin compiled by TraderH4. If readers have the same question, please refer to the answer below. 

• What is the total supply and total circulating supply of WBTC?

The WBTC token has no token release schedule. Instead, the amount of WBTC will be automatically minted or burned whenever a user buys or sells their token for Bitcoin. This mechanism is operated through a merchant and custodian system. Besides, Wrapped Bitcoin is representative and always backed by Bitcoin at 1:1 ratio. 

Therefore, the number of tokens in circulation is directly dependent on the amount of Bitcoin in reserve in the WBTC network. As of press time, the total circulating supply is 273,401.60 WBTC. 

• How Secure is the Wrapped Bitcoin Network?

WBTC tokens are run on the Ethereum platform according to ERC-20 standards, so WBTC inherits the security capabilities of the parent blockchain (Ethereum). Additionally, WBTC tokens are also protected by proof-of-work Ethash, a representative of the Keccak family of hashes. How to convert BTC to WBTC and vice versa?

To be able to easily convert from BTC to WBTC and vice versa, you need to use 3 main components:

• Customer: Those are BTC holders.
• Merchant: An intermediary unit, helping to convert two BTC and WBTC. 
• Custodian: This is the organization whose mission is to receive BTC and convert it into WBTC.
• How is WBTC different from Bitcoin?

Although WBTC is BTC's representative for the DeFi array, the token uses Ethereum's blockchain technology platform, using proof of stake PoS. Meanwhile, BTC is run on the Bitcoin platform and uses the PoW consensus protocol. 

summary 

The article on TraderH4 shared with you about the Wrapped Bitcoin project and the representative token of the largest coin in the WBTC market. This token is the vehicle that helps Bitcoin break through barriers and restrictions to enter the DeFi market. The project has a founding team who are all famous organizations in the market and also built a relatively large community. 

Even so, the project still has to compete fiercely with projects with the same idea as imToken. Therefore, investors need to carefully study the project, at the same time analyze and choose the appropriate investment time. Wish you always stay awake and make informed choices with optimal profit performance. 

• BitGo Rejects Offer to Withdraw $50 Million of WBTC from Alameda Research