Why do we need Wrapped Bitcoin (WBTC)?

To understand Wrapped Bitcoin, one must understand the difference between the two.

Bitcoin is merely a currency, Ethereum is a super-computer

The native currency of the Bitcoin blockchain is also called Bitcoin. The native currency of Ethereum Blockchain is called Ether.

Bitcoin has established itself as the poster child of the crypto world- an investment asset, that though volatile, has given mouth-watering returns, and a robust blockchain that has never been hacked (touchwood).

However, it’s important to understand that the Bitcoin blockchain is a very basic blockchain. It does one thing and one thing only (albeit it does it very well)- It maintains the bitcoin cryptocurrency system by maintaining an immutable ledger of bitcoin transactions in a decentralized manner.

Ethereum is the more ambitious cousin. It aims to be a global super-computer. And on this super-computer run many dApps (Decentralized Apps), somewhat like many Apps running on iOS. Ether is not the raison d’etre of the blockchain. Ether exists merely to give financial incentives to the participants of the ecosystem built on Ethereum.

DeFi runs on Ethereum

The exciting projects of DeFi (Decentralized Finance) exist mainly on Ethereum- exchanges, lending…