.png){kind=logo}
Even after its aggressively volatile market position, Bitcoin is still the world's first, largest, and most-recognized crypto asset. Since its creation in 2009, there have been several other cryptocurrency assets that have emerged to prove themselves as a better option for investment than BTC itself. And it's even true that Bitcoin is not the be-all and the end-all of cryptocurrencies. Quite weirdly though, a major portion of the global crypto market's volume depends on Bitcoin due to its popularity. Nevertheless, the different types of cryptocurrencies that have risen after the creation of BTC might fulfill the obligations that Bitcoin has failed to grant to its investors. This is where Wrapped Bitcoin comes in. And with the declining value of Bitcoin, Wrapped Bitcoin is gaining more popularity and becoming a hub of popular DeFi applications.
wBTC is simply an ERC-20 token that represents Bitcoin, one wBTC equals one BTC. Yes, Bitcoin can be converted into wBTC and vice-versa. Since wBTC is an ERC-20 token, it makes the transfer of these tokens far faster than those of traditional BTC tokens. But investors would be able to utilize the full potential of wBTC tokens if they are used in Ethereum wallets, DeFi applications, and smart contracts.
DeFi has grown exponentially as the Ethereum blockchain showed remarkable growth too. Here, Wrapped Bitcoin provides interoperability between Bitcoin and Ethereum, enabling BTC holders to participate in the ETH's advancing ecosystem. The wBTC protocol is also controlled by a DAO that consists of 17 stakeholder members within the DeFi space. To increase trust and transparency in the crypto ecosystem, Wrapped Bitcoin also undergoes regular audits and publishes all on-chain transactions and verifications for the BTC and ETH networks.
So, in a nutshell, experts believed that it is not how individuals use wBTC, but it is about what developers build using wBTC and this crypto is slowly becoming one of the favorite tokens for DeFi developers.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
