What is Wrapped Bitcoin (WBTC)? The Wrapped Bitcoin (WBTC) Token is Bitcoin converted to Ethereum. It is an ERC-20 token. It has been developed on a par with Bitcoin and allows using Bitcoin on the Ethereum network. Users with DAO contracts and multiple wallets can use it. 1 WBTC Token is pegged to 1 BTC and is a stablecoin. cryptocoin.com We have compiled the details for you, let’s examine the subject together…
What is Wrapped Bitcoin (WBTC)?
The project is programmed on Dapps that run Bitcoin with smart contracts compatible with smart contracts. The goal of the project; is to create a token that converts a Bitcoin the fastest. 1 BTC is required to carry 1 WBTC Token. At the same time, it aimed to present financial transactions made over BTC more quickly.
Advantages and Disadvantages
Advantages;
- It is not possible to trade with BTC over the Ethereum network, but since 1 BTC and 1 WBC Token are fixed to the same value, transactions are made easily.
- Unlike BTC, WBTC Token is faster and transaction fees are quite low. Transfers and exchanges take place within minutes.
- It is not possible to earn passive income through smart contracts in BTC, but WBTC Token users can do it very easily as if they were trading in BTC. In this way, they have the opportunity to earn passive income.
Disadvantages;
- Since it has the same value as 1 BTC, it is instantly affected by the price changes experienced by BTC.
- Users who want to transact with WBTC Token must keep 1 BTC as escrow in their wallets.
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