What is Wrapped Bitcoin?
Wrapped Bitcoin (WBTC) is an ERC-20 token (common Ethereum token) and is the analogue of Bitcoin. BTC can be changed into WBTC and vice versa. WBTC combines Bitcoin and DeFi in a special technique. While adding price and liquidity (capital) to Bitcoin, it makes the token suitable for use in the Defi world. As an ERC20 token, activities with WBTC are faster than BTC transactions, but the main advantage of WBTC is its integration into the Ether world, dapps and smart contracts. Users who own BTC and want to transform it to WBTC need to cooperate with sellers. Sellers start the procedure of creating or recording WBTC tokens by completing confirmation operations to verify the identity of the cusrtomer. When a merchant wants to convert his WBTC tokens back into BTC, he places a burn request (the specified quantity of WBTC tokens are burned). If successful, the manager sends the merchant the requested amount of BTC (on the Bitcoin blockchain).**