Is WBTC an ERC-20?

A key feature of WBTC is its one-to-one pegging with Bitcoin (BTC). This means that each WBTC token is backed by an equivalent amount of Bitcoin, ensuring its value remains closely aligned with the underlying asset. This peg provides a layer of stability and trust for users looking to leverage Bitcoin's value in DeFi environments.

WBTC holds a significant place in the history of wrapped Bitcoin on Ethereum. It was the first widely adopted form of wrapped Bitcoin, paving the way for other similar tokens to emerge. Its early adoption helped establish the viability of using Bitcoin in DeFi applications, despite the challenges associated with Bitcoin's native blockchain.

Prior to the introduction of WBTC, using Bitcoin as a financial derivative was limited. The primary method was through centralized entities, such as centralized exchanges (CEXs). These platforms allowed users to trade Bitcoin derivatives but often came with associated risks and limitations, including potential for fraud, manipulation, and lack of transparency.

WBTC represents a unique concept in the cryptocurrency world. It is designed as an ERC-20 token, which operates on the Ethereum blockchain and other compatible networks. This format allows it to interact seamlessly with various decentralized finance (DeFi) applications and smart contracts.

BTCC is a prominent cryptocurrency exchange that offers a range of services tailored to the needs of crypto enthusiasts. Among its offerings are spot trading, which allows users to buy and sell cryptocurrencies at current market prices, and futures trading, which enables leveraged betting on future price movements. BTCC also provides a secure wallet service for storing digital assets.