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Author: Admin | 2025-04-28
Wrapped Bitcoins (wBTC) are exactly what Bitcoin holders need for making the best of the DeFi revolution. You can use your wBTC tokens for liquidity mining, yield farming, and much more, on DeFi platforms. So how can wrapped Bitcoins be used on the Ethereum platform? Can you use wrapped Bitcoins on the Binance platform? More importantly, how do I convert my Bitcoins to wrapped Bitcoins?Well, that's what this article is all about. There are many advantages to converting your Bitcoins into Wrapped Bitcoins or wBTC tokens. So read on to learn all you need to know about the minting and burning of wrapped bitcoins. ContentsWhat is a Wrapped Bitcoin?Why “Wrap” Bitcoins?How is Bitcoin Converted to Wrapped Bitcoin?What is Minting and Burning of wBTC?Who Controls the Workings of wBTC Protocol?Advantages of Wrapped BitcoinOther Wrapped Bitcoin ModelsThe Way Ahead for Wrapped BitcoinBefore You GoWhat is a Wrapped Bitcoin?The simplest definition of a wrapped Bitcoin: It is an ERC-20 token on the Ethereum blockchain.Wait, did I say Bitcoin on Ethereum? Aren’t they two different blockchains altogether?Yes, that is correct. Bitcoin (BTC) is the crypto asset on the Bitcoin blockchain while ERC-20 tokens are the native tokens of the Ethereum blockchain. A wBTC token is built using the protocol standards of an ERC-20 token. So it can be used on the Ethereum blockchain. At the same time, wBTC represents Bitcoin (BTC) on a 1:1 basis. In simpler terms, one wrapped bitcoin is always equal to one bitcoin. In other words, ‘wrapping’ a BTC converts it to a wBTC (an ERC-20 token). As an ERC-20 token, this wBTC can now be used on the Ethereum blockchain.This raises another question! Are wrapped Bitcoins only for use on Ethereum blockchain? What about the Binance Blockchain?The good news is that you can use the Binance Bridge to wrap your crypto assets (BTC, ETH, USDT, etc) in the form of BEP-20 tokens. Just like the ERC-20 tokens on Ethereum, BEP-20 tokens are the native tokens of the Binance Smart Chain (BSC)Just like wrapped tokens on Ethereum, you can wrap Bitcoin and many other cryptos for use on the Binance Smart Chain (BSC). The Binance Bridge allows you to wrap your crypto assets (BTC, ETH, XRP, USDT, BCH, DOT, and many more) for use on the Binance Smart Chain in the form of BEP-20 tokens.In this article, we’ll keep the focus on Wrapped Bitcoins (ERC-20 tokens) used on Ethereum.Why “Wrap” Bitcoins?But why would we want to wrap something as highly-priced as bitcoin and use it on the Ethereum blockchain? The answer is quite interesting. As you know, digital currency is synonymous with Bitcoins. In fact, bitcoin is considered the original cryptocurrency, the first of its kind. Despite the thousands of cryptocurrencies that are available today, Bitcoins continue to enjoy supremacy in the crypto world. The market cap they possess is huge. It is indeed the most valuable and commonly held cryptocurrency in the world.But they have one major drawback. Bitcoin may have ushered in the new dawn of blockchain technology.
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