Ethereum & Bitcoin Made A Baby = Wrapped BTC (WBTC)! Everything You Need To Know!
Wrapped BTC or WBTC is a pretty recent invention. It's an ERC20 token that's 1:1 backed by Bitcoin (BTC). It's transparent and audited regularly and is community led. Basically it brings Bitcoin into the Ethereum ecosystem and can now let Bitcoin be used across smart contracts, Dapps, exchanges, wallets, and more. Some benefits includes bringing greater liquidity to the Ethereum ecosystem such as Decentralized Exchanges, standardizes Bitcoin to the ERC20 format, and allows entities to only manage an Ethereum node now and being able to do Bitcoin transactions as well. 4 major types of players in this ecosystem are the DAO members, custodians, merchants, and users. There are some tradeoffs though compared to using Bitcoin natively. Also finally, if congestion or fees ever get too high then it will migrate over to a sidechain that uses Proof of Authority consensus model.
For more info, check out: https://www.wbtc.network/
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