What Is Wrapped Bitcoin (WBTC)?
Wrapped Bitcoin (WBTC) is a tokenized version of Bitcoin (BTC) that operates on the Ethereum (ETH) blockchain. Compatible with the ERC-20 standard, WBTC integrates seamlessly into decentralized exchanges, crypto lending services, prediction markets, and other DeFi applications enabled by ERC-20.
WBTC is backed 1:1 by Bitcoin through a network of audited merchants and custodians, ensuring its price remains pegged to BTC. This allows users to transfer liquidity between Bitcoin and Ethereum ecosystems in a decentralized, trustless manner.
Launched on January 31, 2019, WBTC was first announced on October 26, 2018.
Key Features of Wrapped Bitcoin
Founders of Wrapped Bitcoin
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What Makes Wrapped Bitcoin Unique?
- Cross-Chain Liquidity: Bridges Bitcoin’s value to Ethereum’s DeFi ecosystem.
- Full Transparency: Regular audits ensure 1:1 BTC backing.
- ERC-20 Compatibility: Works with Ethereum-based dApps like Uniswap or Aave.
👉 Discover how WBTC enhances DeFi strategies
WBTC Supply and Security
Circulating Supply of WBTC
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Network Security
WBTC relies on multi-signature custody and automated smart contracts to secure reserves. Custodians like BitGo hold the underlying BTC, with transparent proof-of-reserves.
Where to Buy Wrapped Bitcoin (WBTC)
WBTC is available on:
- Centralized Exchanges: Binance, Coinbase, Kraken.
- Decentralized Platforms: Uniswap, SushiSwap.
- Custodial Services: Supported by institutional providers like BitGo.
FAQ
Is WBTC the same as Bitcoin?
No. WBTC represents Bitcoin on the Ethereum blockchain but is technically an ERC-20 token.
How is WBTC backed?
Each WBTC is backed 1:1 by Bitcoin held in reserve, verified through regular audits.
Can I convert WBTC back to BTC?
Yes, through authorized merchants or custodians who burn WBTC and release the equivalent BTC.
Why use WBTC instead of BTC in DeFi?
WBTC enables BTC holders to participate in Ethereum-based DeFi protocols like lending or yield farming.
Keywords: Wrapped Bitcoin, WBTC, ERC-20, DeFi, Bitcoin, Ethereum, tokenized BTC
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