Wrapped Bitcoin (WBTC) will be published in January 2019 on the Ethereum Blockchain
Home News Wrapped Bitcoin (WBTC) will be published in January 2019 on the Ethereum Blockchain
Marcus Misiak –
In January 2019, a new ERC20-Token is to be implemented on the Ethereum block Chain, which is one-to-one covered by Bitcoin. Kyber Network (KNC), Republic Protocol (REN), and BitGO have banded together and Wrapped in Bitcoin (WBTC).
Bitcoin and Ethereum have always worked independently of each other. While Atomic Swaps and interoperability protocols are, for some time now in development, is the full compatibility between networks, the Code of which is foreign to each other, a complex task. This Problem would like to solve the new project will be Wrapped in Bitcoin (WBTC), by Token a ERC20-the WBTC, which is backed by physical reserves of BTC and likely to decline in the value of Bitcoin remains bound.
Among the companies that are behind Wrapped Bitcoin, the decentralized exchanges Kyber Network and Republic Protocol, as well as the crypto-custodian BitGo. In addition, a number of Ethereum-based projects to support the introduction of the Token. Other decentralized crypto-currency exchanges and other Ethereum projects, such as Airswap, Ddex, Hydrogen, Set Protocol, Compound, MakerDAO, Dharma, Prycto, Idex, Gnosis, Radar, Relay, and block folio.
On the website of Wrapped Bitcoin says:
WBTC standardized Bitcoin to the ERC20-Format, and create Smart Contracts for Bitcoin. This makes it easier to write Smart Contracts, Bitcoin Transfers. The Ethereum network, processes transactions faster than the Bitcoin network, making Bitcoin-holders don’t have to wait any longer. With WBTC the exchange of Bitcoin between exchanges is much faster.
The aim of the project is to replicate the Use of Bitcoin in the way that BTC is with Ethereum interoperable and, thus, decentralized applications and Smart Contracts for Bitcoin and / or its ERC20-Token representation can be developed.
Loi Luu, co-founder and CEO of Kyber Network said of the project:
This Initiative will bring together the liquidity of Bitcoin and the extensive Smart Contract Developer Ecosystem of Ethereum. Applications on Ethereum, such as decentralized exchanges and financial protocols will all be able to use Bitcoin seamlessly, and to create Bitcoin trading pairs that were previously impossible. At the same time, the use of Bitcoin is enhanced by more decentralised use cases such as stock market, credit, token payments.
Since Wrapped Bitcoin (WBTC) is covered one-to-one by reserves in Bitcoin, there needs to be a custodian. This will be a BitGo as the main Depository, which holds a Reserve of Bitcoins, in order to secure all of the embossed WBTC-tokens are in circulation, on the Ethereum block chain. In the long term, other Depositary banks and dealers to serve as custodians, in order to promote the growth of the project. To this end, a decentralized Autonomous organization (DAO) will be enabled and the Monitoring of the further development of the project commissioned. DAO-members can vote on future developments, and all proposed improvements and decide.
Irrespective of this, the reserves in Bitcoin will be via a website and the addresses of all the BTC for everyone to verify.