What is WBTC?
WBTC (Wrapped Bitcoin) is a tokenized version of Bitcoin based on the Ethereum network. It allows users to store their Bitcoin in the form of an ERC-20 token, which can then be used in decentralized applications and traded on cryptocurrency exchanges. In essence, it provides a bridge between the two major blockchain protocols: Ethereum and Bitcoin. By using WBTC, holders of BTC are able to access services that were previously only available on Ethereum while still retaining ownership of their BTC assets. The Wrapped Bitcoin project was developed by BitGo, Kyber Network and Ren with support from over 20 leading projects such as MakerDao, Compound Finance, Uniswap etc.
How does WBTC work?
In order for users to obtain WBTC tokens they must first deposit an equivalent amount of BTC onto BitGo’s custodial platform. Once deposited these funds are sent to a secure vault where they undergo multiple levels of security checks before being minted as WBTC tokens at a 1:1 ratio with the original BTC collateralized into them; one bitcoin becomes one wrapped bitcoin token (WBTC). These newly created tokens are then distributed via approved merchant networks who act as authorized resellers for purchasing or selling them against other cryptocurrencies like ETH or USDT. On completion this entire process takes around 3-4 hours depending upon network congestion and transaction fees associated with each step involved i.e., sending & receiving payments from wallet addresses etc..
Where can I use/store my WBTC?
Once you have obtained your desired quantity of Wrapped Bitcoins you can store them in any wallet that supports ERC-20 tokens such as MyEtherWallet or MetaMask wallets among many others; however it should be noted that certain hardware wallets may not yet support storing these particular types of coins so please double check compatibility beforehand if opting for this route! Additionally due to its unique design/structure there are now numerous decentralized finance platforms offering various financial services including yield farming opportunities all powered by Wrapped Bitcoins – some popular names include Aave & Compound Finance just to name a few!
