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wBTCV: a trusted bridge between blockchains

Batman or Spider-Man. Black Widow or Wonder Woman. The Flash or Iron Man. DC or Marvel. Every superhero has its universe. Sadly, the mutual permeating of these worlds is out of reach. Owners of cryptocurrencies have been experiencing very similar dilemmas. This was the case until recently. 

In terms of cryptocurrencies, the blockchain is indeed something of a universe. This is where participants conduct transactions without a central authority, and miners can receive new coins for their efforts. Also, other activities like voting or trading take place on the blockchain.  

However, this specific network has only one inconvenience. It’s genuinely a space for one type of coin only. It means that you can’t operate with Ethereum directly on the Bitcoin blockchain and vice-versa.

Similarly, you won’t see Batman joining forces with the Avengers in the fearless combat against evil and crime. Sadly.  

Nevertheless, there is one exception in the crypto universe. It resolves a situation when two bodies can’t occupy the same space at the same time.  

It is called a “wrapped token.” 

It’s a bird! It’s a plane! It’s a… wrap?! 

Wrapped tokens act as a kind of ambassador for one cryptocurrency on another blockchain. For example, people who hold bitcoins can channel their presence on the Ethereum network through Wrapped Bitcoin (WBTC). 

Thanks to that, BTC users can fully enjoy Ethereum’s features, such as decentralized apps (DApps) and smart contracts.

Is it really wrapped?

Of course not. It’s similar to receiving an equivalent version of your original cryptocurrency. Let’s explain it in a simple way: 

Imagine approaching a store clerk. You choose your product, ask him to wrap it, and eventually, you leave. 

But instead, the clerk gives you something comparable that reflects the original value of the primary item.

A more appropriate name for this store clerk would be the term “custodian” in the crypto world. So, the custodian prepares a wrapped token for you. In this case, the custodian can be a retailer, a multisig wallet, or even a smart contract. 

The custodian will keep your original coin and give you an equivalent token of the same value that is compatible with a different blockchain.  

Once your wrapped token is ready, the custodian sends it to your address. And now, with the wrapped token to hand, you can fully enjoy access and the functionalities of the hospitable blockchain.

What can we do with wrapped tokens? 

Wrapped tokens provide users with multiple opportunities. Instead of paying high fees to trade their coins back and forth for those of other blockchains, they can simply wrap their original crypto and do their business.  

Wrapped tokens also open doors to smart contract platforms like Binance Smart Chain and Ethereum.  

DeFi, or Decentralized Finances, are recently one of the hottest trends in the area of cryptocurrencies. The idea is to transition financial services, such as loans and insurance, to the blockchain.  

As for now, Ethereum dominates DeFi. But wrapped tokens enable holders of cryptocurrencies like Bitcoin and Bitcoin Vault (BTCV) to explore DeFi utilities.

What is Wrapped BTCV (wBTCV)? 

wBTCV is a wrapped version of Bitcoin Vault (BTCV). In a nutshell, BTCV is a sagely engineered coin with a thorough security structure and well-thought road map for global expansion

Technically, wBTCV is a BEP-20 token that represents BTCV on the Binance Smart Chain (BSC). wBTCV has its value pegged to BTCV on a 1:1 BTCV in a 1:1 BTCV in a 1:1 ratio.

Users who transform their BTCV into wrapped BTCV gain access to all BSC functionalities, including smart contracts, DApps, DeFi yield farming, lending platforms, and BEP-20 compatible wallets.  

On top of that, those who want to return to the original coin can quickly unwrap its successor. 

wBTCV chose to launch on Binance Smart Chain for a reason. Although the Ethereum network is the first choice for wrapped tokens, BSC has many significant advantages.  

First and foremost, BSC provides users with faster transactions. The platform also covers more than one-fifth of Ethereum’s transaction size but with only 0.6% of the gas fees. 

It is not surprising that Binance Smart Chain is gaining ground. 

Key takeaways 

Blockchain networks have their unique functionalities. Wrapped tokens are an intelligent way to take full advantage of the features given by each blockchain without any great hassle and additional transaction costs.  

wBTCV, a wrapped version of Bitcoin Vault, gives users opportunities they couldn’t enjoy before, like DApps and smart contacts, among others. 

The launch of wBTCV on Binance Smart Chain is an example that shows alternative networks can also benefit users who are looking to enjoy the best of both worlds.