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What is Wrapped Bitcoin and Why is it So Special?

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A new token is the crypto space which is apparently supported one-to-one by Bitcoin. This new token is called Wrapped Bitcoin, i.e., WBTC. And the new token (WBTC) is now live on the Ethereum platform which is powered by blockchain technology.

The new WBTC coin is a product of the joint venture by one decentralized exchange company named Kyber Networks (it is a startup) and Republic Protocol along with BitGo, a crypto custody firm. The sole objective of introducing this new token is to add liquidity to the Ethereum ecosystem.

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The new product a joint venture of three companies was first announced last year in the month of October. During the launching of this new coin on the Ethereum platform, one of the BitGo’s key executives said that WBTC comes with a dual benefit; it has the stability of Bitcoin and the flexibility of Ethereum.

He further said that though Bitcoin is more volatile and vulnerable to the market uncertainties, it is the most liquid and balanced cryptocurrency in the market and it has the highest market capitalization. The objective of this venture is to come up with a seamless and well-arranged transition/trade between two crucial cryptocurrencies in the market; Bitcoin and Ethereum.

Which means, if a person is already owning Bitcoin, he or she can quickly bring it on the Ethereum platform in the form of a WBTC token, and then the person can cash it out at any time in the form of Bitcoin.

As per the official blog post of the project, the WBTC is said to be overall utilizable applications which have incorporated Kyber’s liquidity protocol for decentralized token swaps. They are utilizing an innovation known as atomic swaps, which is a P2P exchange of cryptocurrency. It is managed without taking any help from a third party service like a crypto exchange.

The company, in its press release, has also said that all WBTC smart contracts are inspected by third-party firms. The WBTC coin has already been listed on CoinMarketCap, at the cost of USD 3,460.81 which is on an average below Bitcoin (USD3,469.49).

As per every new change, this change also has a mixed response from the market. Not everybody is convinced with the introduction of WBTC. Social media platforms are flooding with criticism for this new coin. Crypto lovers and experts are calling it many names.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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