Bitcoin News
By Steven Anderson
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There is a very common question on why is there a need for Wrapped Bitcoin (WBTC) when there are several atomic swap markets to exchange Ethereum (ETH) with Bitcoin (BTC) like…
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Now that there are multiple atomic swaps markets to exchange Ethereum (ETH) with Bitcoin (BTC), such as AtomicDEX and NebliDex, what would the purpose be for wrapped Bitcoin to…
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For clarity, Wrapped BTC (WBTC) is an ERC20 token backed 1:1 by bitcoin which enables bitcoin holders to use tokenized Bitcoin in Ethereum-powered decentralized applications and…
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When tokenizing BTC to WBTC users go through a merchant and the BTC will be held by a custodian. The Bitcoin holders BTC is sent to the merchant.
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For clarity on the basics, When Bitcoin is represented as a token it will be possible to use it in other smart contracts and DeFi lending protocols.
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The good thing about atomic swaps is that it makes it possible for users to trade between different blockchains trustlessly.
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WBTC can be used as a collateral in the platform, which accepts it. Tokenizing an asset leads to lot of possibilities.
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WBTC is a better mechanism or exchange. When you hold WBTC you are not actually holding Bitcoin.
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