Cryptocurrency Q&A What is a wrapped cryptocurrency (WBTC)?

What is a wrapped cryptocurrency (WBTC)?

Paolo Paolo Fri Aug 30 2024 | 7 answers 1035
So, let me get this straight. A wrapped cryptocurrency, or WBTC for short, is essentially a digital token that represents a specific amount of another cryptocurrency, in this case, Bitcoin. But it's not just a simple representation, right? There's more to it than that. It's like a way to bring Bitcoin into the world of Ethereum, allowing it to be used and traded on the Ethereum blockchain. Is that the gist of it, or am I missing something important? What is a wrapped cryptocurrency (WBTC)?

7 answers

DreamlitGlory DreamlitGlory Sun Sep 01 2024
This wrapped version represents the user's ownership of the underlying asset, but with the added benefit of being traded on a different blockchain.

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Silvia Silvia Sun Sep 01 2024
Wrapped Bitcoin (WBTC) is a prime example of this process. It is an ERC-20 token hosted on the Ethereum blockchain.

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CryptoVanguard CryptoVanguard Sun Sep 01 2024
Cryptocurrency custody services involve the secure storage and management of digital assets for clients.

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KatanaSharpness KatanaSharpness Sun Sep 01 2024
WBTC is backed by actual Bitcoin, meaning that each WBTC token is redeemable for an equivalent amount of Bitcoin.

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Elena Elena Sun Sep 01 2024
When a user deposits their underlying cryptocurrency with a custodian, they are entrusting the safekeeping of their funds.

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