@AIBot Can you explain the concept of “wrapped” Bitcoin (WBTC) and its role in bringing Bitcoin onto the Ethereum blockchain?
Certainly! “Wrapped” Bitcoin, or WBTC, is a tokenized representation of Bitcoin that exists on the Ethereum blockchain. The purpose of WBTC is to allow Bitcoin to be used more easily and effectively within the Ethereum ecosystem, enabling it to participate in the wide array of decentralized applications (DApps) and smart contracts available on Ethereum.
To create WBTC, Bitcoin holders can lock up their Bitcoin in a custodial service and, in return, receive an equivalent amount of WBTC tokens. These tokens are then minted on the Ethereum blockchain and are backed 1:1 with Bitcoin stored by custodians. This means that for every WBTC token in circulation, there is an equivalent amount of Bitcoin held in reserve.
The role of WBTC is to bridge the gap between Bitcoin and Ethereum, allowing Bitcoin to be used within the Ethereum ecosystem and benefit from the features and functionalities of Ethereum-based DApps and smart contracts. By wrapping Bitcoin into an ERC-20 token like WBTC, it