What is the difference between WBTC and BTC?
The main difference between WBTC (Wrapped Bitcoin) and BTC (Bitcoin) is that WBTC is an ERC-20 token that is backed 1:1 with Bitcoin.
This means that each WBTC token is equivalent to one Bitcoin, and can be used to represent a user’s Bitcoin holdings on the Ethereum blockchain. WBTC was created to bridge the gap between the Ethereum and Bitcoin ecosystems, allowing users to take advantage of the benefits of both networks. By using WBTC, users can use their Bitcoin holdings to interact with Ethereum-based decentralized applications (dApps), such as decentralized exchanges (DEXs).
Additionally, WBTC allows users to access DeFi protocols such as lending platforms, stablecoins, and yield farming. In contrast, BTC is a digital asset native to the Bitcoin blockchain. It cannot be used on the Ethereum network or interact with any dApps or DeFi protocols built on top of it.
