WBTC- 'The new princes'
By MishalAmeen | Anonymous.bro | 27 Oct 2020
If there is an emperor for crypto currency definitely it's BITCOIN. The most popular & the first crypto currency in the world. Also the most recognized crypto currency
I am not hiding that yearn.finance recently has more value than Bitcoin.but it's not at all popular to the ordinary crypto holders. So I think BTC has better future than yearn finance & BITCOIN is ruling the market for so many years.
Wrapped Bitcoin (WBTC) is an ETHEREUM Token which is intended to represent BTC in ETHEREUM block chain .WBTC is trying to bring flexibility in ETHEREUM ecosystem including DEXS (decentralized exchange ) & decentralized finance (“DeFi”) apps.
The major share of trading volume are held on centeralized exchanges with Bitcoin .they are trying to make a change on it by making WBTC as same as BTC & to bring Bitcoin's popularity in ETHEREUM ecosystem.WBTC is tracking the value of BTC by holding BITCOIN according to the minting of WBTC to maintain balance in value. WBTC is allowing to check their Bitcoin addresses which were recieved & holding the bitcoin at their site.
How to exchange BTC & WBTC
Wrapped Bitcoin & Bitcoin can exchange through a Wrapped Bitcoin partner . 1 BITCOIN can be exchange for 1 WBTC or 1 WBTC for 1 BTC back😃😃.for recieving WBTC, a user wants request a token from a merchant. The merchant then will performs the required KYC / AML procedures and verifies the user’s identity. Once this is completed, the user and merchant execute their swap, with Bitcoin from the user transferring to the merchant, and WBTC from the merchant transferring to the user or you can also trade it in several exchanges(e.g..coinbase).
Now Wrapped Bitcoin is listed at COINBASE .
Top features
Minting
Wrapped Bitcoin is creating according to the needs of people. So the value may not go down it will maintain balance (slidely high or low ) equal to Bitcoin .Minting is the process of creating new wrapped tokens.
Minting in the wrapped framework is intiated by a merchant and performed by a custodian. It's according to the needs of WBTC .
Burning
Burning is a fabulous feature of WBTC .this feature will help to control circulation and maintain the tokens value. Burning is occuring while Bitcoin is redeeming for WBTC tokens, and conly merchant addresses can burn it. The amount to be ‘burnt’ is deducted from the merchant’s WBTC balance (on chain) and the supply of WBTC is then reduced.
WBTC is maintained by a group called the WBTC DAO that consists of over 30 members. It was originally started by BitGo, Ren, and Kyber.
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