$83,050.87

Wrapped Bitcoin is a token that represents Bitcoin on other blockchains, maintaining a 1:1 peg. It allows Bitcoin to be used in faster and more scalable environments while preserving the core principles of Bitcoin. The token operates with a custody model that ensures security through controlled minting and burning processes, continuous monitoring, strict access controls, and regular audits, making it a reliable asset for multichain use.

Wrapped Bitcoin is created by converting Bitcoin into an ERC-20 token on the Ethereum network. When a user wants to convert BTC to WBTC, they send their Bitcoin to a custodian, who then mints an equivalent amount of WBTC tokens and sends them to the user's Ethereum address. The process is reversed when WBTC is burned, allowing the user to reclaim their Bitcoin. BitGo acts as the primary custodian, and the WBTC DAO oversees protocol changes and upgrades.

Since WBTC is an ERC-20 token, it can be used throughout the Ethereum ecosystem. This includes trading on decentralized exchanges like Uniswap and Sushiswap, as well as participating in DeFi protocols such as Aave, Compound, and MakerDAO for lending, borrowing, yield farming, and providing liquidity. WBTC can also be used as collateral for loans or in margin trading. These activities are non-custodial and rely on smart contracts.

Wrapped Bitcoin was not founded by individuals but is a collaborative effort among three organizations: BitGo, Kyber Network, and Ren. BitGo, co-founded by Mike Belshe, serves as the custodian. Kyber Network, founded by Loi Luu, Victor Tran, and Yaron Velner, acts as a merchant. Ren, founded by Taiyang Zhang and Loong Wang, also contributes as a merchant. Together, they manage the minting and burning of WBTC to maintain the 1:1 peg.

Wrapped Bitcoin combines the liquidity and popularity of Bitcoin with the advanced capabilities of Ethereum's smart contracts. This allows Bitcoin to be used in decentralized finance applications like lending and insurance without relying on intermediaries. By integrating Bitcoin into the Ethereum ecosystem, WBTC enables users to access a wider range of financial services. Additionally, it simplifies operations for exchanges and wallets by requiring only an Ethereum node, and benefits from Ethereum's faster block time.

The supply of Wrapped Bitcoin is not fixed but adjusts based on demand. WBTC tokens are minted or burned whenever users convert between BTC and WBTC. Since each WBTC is backed by one Bitcoin, the total circulation depends on the amount of Bitcoin held in reserves. As of October 2020, there were over 94,000 WBTC tokens in circulation, valued at approximately $1 billion.

The security of WBTC relies on the underlying Ethereum blockchain, which uses the Ethash proof-of-work algorithm, part of the Keccak hash function family. This ensures that the WBTC network is protected by the same security measures as Ethereum, providing a robust foundation for the token.

WBTC can be purchased on various centralized and decentralized exchanges that act as merchants in the Wrapped Bitcoin network. Major platforms include Uniswap, Binance, OKEx, Huobi Global, and Kyber Network. These exchanges facilitate the conversion between BTC and WBTC, making it accessible to users.