Wrapped Bitcoin provides a bridge between the Bitcoin (BTC) and Ethereum (ETH) networks. The connection between the networks exists in the tokenized version of Bitcoin being run on the Ethereum network, making the much-needed liquidity to the decentralized network readily available. The compliance of the Bitcoin network with the Ethereum network allows for the complete integration and provision of decentralized exchanges, forecasting services, and crypto advancement services. Wrapped Bitcoin enjoys a 1:1 backing ratio through a network that is automatically overseen by the parties involved in its supply process. This provides for easy transfer of liquidity within the Bitcoin and Ethereum network.
Who are the Founders of Wrapped Bitcoin (WBTC)?
Wrapped Bitcoin as a project is part of a grand token project that was not found by one individual but rather by a group of companies in unison. The companies are BitGo, Kyber Network, and Ren. The first announcement of the token was released on October 26, 2018, and then it was launched later in 2019. The first company BitGo is in the service of guarding and general trading of digital assets. The company was co-founded by Mike Belshe, who is an American scientist. Apart from being one of the founding partners of wrapped Bitcoin, the company also serves as the custodian. In essence, BitGo is responsible for holding the wrapped bitcoin tokens and the creation of more of its kind.
The Kyber network is quite different from its other founding counterparts. The company focuses on liquidity protocols that allow for the integration of several decentralized applications and cryptocurrencies. With its headquarters in Singapore, it was founded by Loi Luu, Victor Tran, and Yaron Verner. The major job of the platform is the maintenance of the approved token ratio.
The last participant involved in the creation and running of the Wrapped Bitcoin platform is the Ren company. The principal activity of the company is the integration and creation of cryptocurrency assets and decentralized applications across a series of cryptocurrencies. The company was founded by Taiyang Zhang and Loong Wang in 2017.
What is Wrapped Bitcoin (WBTC) used for?
Over the years, the decentralized finance system has shown significant growth on the wrapped bitcoin platform through the Ethereum network. This allows users of the Bitcoin network to participate in the transactions of the Ethereum network. The wrapped Bitcoin protocol helps the users convert Bitcoin into wrapped Bitcoin which can be used on different decentralized exchanges and several decentralized applications which run on the Ethereum network. The wrapped Bitcoin platform is being integrated on several exchanges and some of its uses include:
- Collateral for burrowing cryptocurrency.
Decentralized financial platforms which are in the business of lending individuals, mostly investors cryptocurrency, require a level of security to provide these loans. This implies a specific amount of cryptocurrency being held on the platform till the amount lent is paid back. Before the development of wrapped Bitcoin, Collateral was mostly in the form of ether tokens. Over time, it was discovered that using a single cryptocurrency as collateral exposed the financial platforms to a series of risks due to price fluctuations. As such, this created room for diversification which birthed the use of Wrapped Bitcoin as an optimal form of collateral with low risks.
- Increased interest rate.
Using the wrapped Bitcoin platform for these lending exercises allows for the parties to gain a certain percentage of their existing cryptocurrency. The decentralized financial platforms in this line of service make use of an adjustable algorithm that employs the use of demand and supply forces for price determination.
What Is the Unique Point of Wrapped Bitcoin (WBTC)?
Bitcoin is essentially the first generation in the line of cryptocurrencies, as a result of this, the platform has been able to amass the largest user base on the cryptocurrency market. However, in comparison to the standards set by the modern world, its mode of operation is relatively basic. Ethereum on the other hand was built from the ground with considerations of advanced usage at a future time by virtue of the smart contracts system giving life to an entirely new generation in the cryptocurrency world.
Ethereum as a platform offers its users a series of products that provide a series of advanced financial tools such as its flagship lending service and its insurance service which does not rely on intermediaries. The main market point of the WBTC platform is the provision and integration of advanced next-generation technology on a Bitcoin-like asset. In addition to all the other advantages, it also brings ease of liquidity into the mix, which is an advantage enjoyed by the Bitcoin network due to its large clientele.
Wrapped Bitcoin being integrated into the ERC-20 platform also comes with some other general benefits for the platform. Another one of these is the provision of an easy mode of transacting for payment services and wallets that work with ethereum. Normally, BTC and ETH networks operate on different nodes however, with the wrapped Bitcoin system, operations are only executed on the ethereum node.
How much wrapped Bitcoin (WBTC) is in circulation?
Unlike the regular operations of most cryptocurrencies, Wrapped Bitcoin does not have a specified amount that has been issued into society. The system rather employs a new mode of operation on which new amounts of wrapped Bitcoin are created or burned when an individual either sells their WBTC or purchases it. This operation is executed through a system controlled by merchants and custodians.
According to the last recorded amount around October 2020, the number of available tokens was slightly over $94,000 which had a worth of around $1 billion.
Wrapped Bitcoin is generally backed by the bitcoin network at a 1:1 ratio. As such, the amount of tokens in circulation is dependent on the amount of Bitcoin reserves in the Wrapped Bitcoin network.
Is the Wrapped Bitcoin (WBTC) Network secured?
Wrapped Bitcoin is generally on the top of its game when it comes to the topic of safety. By being a collateral system employed by several decentralized financial platforms, it is backed by several layers of security. One of those layers is its system of destroying old tokens and creating new ones as a form of transacting in the open market.
One of the things WBTC has proven is that the need for yield trade is nowhere close to being exhausted and is still undergoing a series of growth and security. This essentially makes it one of the safest methods of earning via yield assets.
How do I buy Wrapped Bitcoin (WBTC)?
There are a series of merchants globally that support wrapped Bitcoin and this number keeps growing drastically. The main reason for this is the need for better-connecting bridges between the Bitcoin and Ethereum network and Wrapped Bitcoin has done just that.
To purchase Wrapped Bitcoin (WBTC) tokens, just follow these simple steps:
* Open an account with any crypto trading platform that offers WBTC.
* Transfer your fiat currency to the trading platform account.
* Wait for your deposit to be confirmed and Buy WBTC through the trading platform account.
Which Cryptocurrency Wallet Supports Wrapped Bitcoin (WBTC)
The PTPWallet platform supports many cryptocurrencies simultaneously, such as WBTC tokens. Because of its speed, flexibility, and unique features, it has grown to become one of the most used new platforms. In addition, users can easily use PTPWallet as their main Wrapped Bitcoin wallet as it offers a simple and interactive interface, making it easy to navigate its system.