Ethereum-Based’Wrapped’ Token Backed by Bitcoin Launches
The money is a joint venture by Kyber Network liquidity protocol, security company BitGo along with others.
BitGo announced the evolution of the coin backed 1:1 at October 2018 with Bitcoin. A statement by the company then stated that Wrapped Bitcoin will provide users with a “broad number of new decentralized use cases including on decentralized exchanges (DEXs), including security for stablecoins or lending, for flexible and payments smart contracts inside the Ethereum ecosystem. ”
The media release states that all WBTC smart contracts are audited by third-party companies. It claims that evidence of reserve revealing an ratio of minted WBTC is on-chain that is observable.
At the state of South Dakota, BitGo turned into a certified cryptocurrency custodian Back in September 2018. Therefore, the company then became subject to regulatory oversight in compliance with Know Your Client (KYC) and also anti-money laundering (AML) policies.
Wrapped Bitcoin use cases for Bitcoin and will allegedly allow for new programs. A media release from the WBTC network states “WBTC makes it possible for dealers to use Bitcoin significance for nominal trades on exchanges simply by enticing Bitcoin & rsquo liquidity to Ethereum. ”
WBTC is a ERC-20 token, which can be tokens designed and used solely on the Ethereum platform that create the streamline the creation of new tokens. ERC-20 tokens offer a sort of template by which a token can be built by programmers, preventing them from programming a new crypto from the ground up.
Pricing info for WBTC is available on CoinMarketCap. At this point, the coin is currently trading at $3,504.98, which will be slightly higher than Bitcoin, which will be trading at 3,501.28.