Wrapped Bitcoin (WBTC) is an ERC-20 token that represents Bitcoin (BTC) on the Ethereum blockchain. Each WBTC is backed 1:1 by Bitcoin, meaning one WBTC equals one BTC. This ensures its value closely mirrors Bitcoin’s price, providing a way to utilize Bitcoin within Ethereum’s decentralized finance (DeFi) ecosystem.
WBTC allows Bitcoin holders to engage in activities like lending, borrowing, or trading on Ethereum-based platforms. It bridges the gap between Bitcoin’s liquidity and Ethereum’s flexibility, making it a powerful tool for enhancing interoperability between blockchains.
Users benefit from faster transaction times and lower costs compared to Bitcoin’s blockchain, while maintaining the security of their assets through transparent custodial practices. WBTC is transforming how Bitcoin integrates with DeFi.
