In line with an official ‘press release‘ published, WBTC [Wrapped Bitcoin], which is an Ethereum [ETH]-based token backed by Bitcoin [BTC], has launched today ie. on 31st Jan. This new currency is a joint initiative by the blockchain security firm named ‘BitGo’, Kyber Network liquidity protocol along with others.
BitGo ‘revealed‘ the event of the coin backed in 1:1 ratio with Bitcoin [BTC] earlier in Oct. 2018. A press-release statement by the firm then aforesaid that Wrapped Bitcoin will offer users with a “wide sort of new decentralized use cases as well as on DEXs [decentralized exchanges], as collateral for ‘stablecoins‘ or disposition, for payments and smart contracts in the Ethereum phase.”
WBTC is an ERC-20 token, designed and can be used entirely on the Ethereum platform that create the streamline the creation of recent tokens. ERC-20 tokens offer a form of guide by which developers can build a new token, sparing them from coding a new cryptocurrency from the ground up.
Wrapped Bitcoin can supposedly yield new applications and use cases for Bitcoin on the Ethereum network. A release from the WBTC network states that “By linking Bitcoin’s liquidity to Ethereum, WBTC conjointly makes it possible for traders to use Bitcoin price for token trades on decentralized exchanges.”
The release conjointly stated that all WBTC smart contracts are audited by third-party corporations. It additionally states that proof of reserve showing an exact 1:1 ratio of minted WBTC to BTC is evident on-chain.
Pricing information for WBTC is presently now available on the ‘CoinMarketCap‘. At the reporting time, the coin is currently trading at a price around ‘$3,446.45 USD‘ that is slightly lower than Bitcoin [BTC], that is trading at ‘$3,456.13 USD‘.
Earlier in Sept. 2018, BitGo became a licensed cryptocurrency defender through the acquisition of a state trust firm charter within the American state of South Dakota. As such, the firm lately became subjected to regulative oversight in compliance with KYC [Know Your Customer] and AML [Anti-Money Laundering] policies.