Wrapped Bitcoin (WBTC) - a combination of Bitcon and Ethereum

Wrapped Bitcoin is a token that combines the best features of a cryptocurrency Bitcoin and networks Ethereum. It was on its basis that the ERC-20 token was created, secured with Bitcoin reserves in a 1: 1 ratio, which hit the top cryptocurrencies in the world just a few months after its creation. 

We continue the cycle of the Forex Club portal, in which we describe the largest, most valuable, as well as the most popular and most controversial cryptocurrency projects in the world. Today is the time for Wrapped Bitcoin - a combination of fire and water that could not have been successful in the world of traditional finance, but is a hit in the world of blockchain that focuses on practical solutions.

Token for the development of blockchain projects

Initially, the Wrapped Bitcoin (WBTC) token was to be used only in decentralized finance (DeFi) for the so-called yield farming, i.e. supporting project financing blockchain, also those that immediately announce that the return on investment will not be spectacular. It is estimated that today almost 200 BTC in Wrapped Bitcoin tokens is blocked by DeFi protocols. Their sum amounts to 1% of all Bitcoins in circulation. In September 2020, it was approx. 80 thousand. Bitcoin, so you can clearly see that the growth is gigantic.

How Wrapped Bitcoin works

WBTC is called synthetic Bitcoin. It is backed 1: 1 with BTC reserves. It aired in January 2019. Initially, the daily trading volume reached USD 1 million, but now you can think of this amount as a minor. 

The new cryptocurrency was quickly appreciated because it combines the liquidity of Bitcoin with the decentralized Ethereum ecosystem, which allows easy participation in blockchain projects. The project was also created thanks to the support of the Bitcoin community, so the community also had no resistance to quickly accepting it. 

Companies that have invested in traditional businesses so far have quickly joined the enthusiasts of blockchain technology. BitGo has raised $ 15 million from Goldman Sachs and Galaxy Digital. After them, the Kyber Network joined the project. This set of investors is a guarantee of safe cryptocurrency trading and digital asset storage also on behalf of institutional investors.  

“Ethereum applications such as decentralized exchanges and financial protocols can therefore use Bitcoin seamlessly, creating trading pairs with Bitcoin that until now were impossible. At the same time, trading via Bitcoin will be enriched with new decentralized opportunities such as exchange,  loans and  payment by tokens " - underlines Loi Luu, co-founder and CEO Kyber Network.

Wrapped Bitcoin is set to be commonplace

Wrapped Bitcoin is to be based on modern protocols and smart contracts. The addition of atomic swap technology to the WBTC project allows users to deposit safely and confidently  or withdraw your BTC / WBTC deposit. Undoubtedly, this helps to gain mass market, as does token creation on the Ethereum network. Wrapped Bitcoin can be used, among others to buy real estate. A smart contract will allow the transfer of ownership and all documents upon the fulfillment of specific conditions by both parties - it may not only be the payment of the agreed amount, but also renovation of a specific part of the house, etc.

Wrapped Bitcoin (WBTC)

Wrapped Bitcoin very quickly found its way to the world's largest cryptocurrency exchanges. Today it can be traded on 25 of them. As of 10.12.2020/18.100/114.224, each token costs $ 2. There are 1.12.2020 tokens in circulation, which translates into a market cap of over $ 19.875 billion. The record price was set on XNUMX December XNUMX and amounts to USD XNUMX.