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?
7 answers
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.
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.
CryptoVanguard
Sun Sep 01 2024
Cryptocurrency custody services involve the secure storage and management of digital assets for clients.
KatanaSharpness
Sun Sep 01 2024
WBTC is backed by actual Bitcoin, meaning that each WBTC token is redeemable for an equivalent amount of Bitcoin.
Elena
Sun Sep 01 2024
When a user deposits their underlying cryptocurrency with a custodian, they are entrusting the safekeeping of their funds.