What is wBTC? (Wrapped Bitcoin)
The Beginner’s Guide
In this way, wBTC operates as a bridge between bitcoin and ethereum, allowing Bitcoin users to access decentralized finance (DeFi) applications and for ethereum applications to gain additional liquidity.
To make this work, the process of going from BTC to wBTC depends on three entities:
- Custodians – Minting wBTC and keep its bitcoin reserves secure.
- Merchants – Distribute wBTC to users and destroy excess wBTC
- DAO – a decentralized autonomous organization responsible for smart contract changes and the addition or removal of merchants and custodians
Once wBTC has been deposited in a user’s Ethereum address, the asset can be used in the network’s financial applications for savings, lending, and investment services, in a way that may offer advantages over existing options.
Compared to processes in which credit is evaluated by a financial institution, wBTC users can put their bitcoin to work without divulging private information.
Paano gumagana ang wBTC?
Users who wish to deposit BTC and mint wBTC must go through a process that is carried out by merchants and custodians.
Once a user submits a request, merchants initiate a transaction to authorize the custodian to mint a corresponding amount of wBTC. The merchant then sends bitcoin to the custodian in exchange for the newly minted wBTC, which the user can then exchange their BTC for wBTC.
In order to redeem BTC for wBTC, merchants initiate a burn transaction and notify the custodians, who then release the corresponding amount of BTC to the merchant’s bitcoin address.Users then their wBTC to redeem BTC with the merchants, who burn the received tokens.
The smart contracts that create wBTC is controlled by a DAO composed of custodians, merchants, and agreed upon institutions. The DAO makes communal decisions such as changes to the smart contract that mints wBTC or adding/removing its members.
Bakit may value ang wBTC?
Nakukuha ang halaga ng wBTC mula sa pagsasalamin ng presyo ng bitcoin, dahil ito ay backed 1:1, salamat sa reserve nito.
Ang wBTC ay nag-aalok ng kaparehong halaga sa ibang proyekto ng mint Ethereum tokens na nag-sasalamin ng presyo ng bitcoin, tulad ng Keep’s tBTC, na nagpapahintulot sa bitcoin holders na makipag-ugnayan kasama ng malawak na suite ng DeFi dapps na kasalukuyang nasa Ethereum na hindi kinakailangang ibenta ang kanilang mga asset.
Kapag na pag-desisyunan na hindi na gagamit ng services na ito, maliit lang na fee ang kailangang bayaran para makuha ang bitcoin nila mula sa mga merchants.
Kraken's Crypto Guides
- Ano ang Bitcoin? (BTC)
- Ano ang Ethereum? (ETH)
- Ano ang Ripple? (XRP)
- Ano ang Bitcoin Cash? (BCH)
- Ano ang Litecoin? (LTC)
- Ano ang Chainlink? (LINK)
- Ano ang EOSIO? (EOS)
- Ano ang Stellar? (XLM)
- Ano ang Cardano? (ADA)
- Ano ang Monero? (XMR)
- Ano ang Tron? (TRX)
- Ano ang Dash? (DASH)
- Ano ang Ethereum Classic? (ETC)
- Ano ang Zcash? (ZEC)
- Ano ang Basic Attention Token? (BAT)
- Ano ang Algorand? (ALGO)
- Ano ang Icon? (ICX)
- Ano ang Waves? (WAVES)
- Ano ang OmiseGo? (OMG)
- Ano ang Gnosis? (GNO)
- Ano ang Melon? (MLN)
- Ano ang Nano? (NANO)
- Ano ang Dogecoin? (DOGE)
- Ano ang Tether? (USDT)
- Ano ang Dai? (DAI)
- Ano ang Siacoin? (SC)
- Ano ang Lisk? (LSK)
- Ano ang Tezos? (XTZ)
- Ano ang Cosmos? (ATOM)
- Ano ang Augur? (REP)
Bakit kailangan gamitin ang wBTC?
Users may find wBTC appealing as a way to use their bitcoin in Ethereum’s applications and put their idle cryptocurrency to work in various yield-generating instruments.
Investors may also want to consider adding wBTC to their portfolio to gain exposure to bitcoin’s price action without interacting with Bitcoin’s network or purchasing it through a centralized exchange.