Wrapped BTC

Wrapped Bitcoin, aka WBTC, is a Bitcoin-pegged token that can be used on the Ethereum network. You can use WBTC to trade and stake digital currencies, as well as participate in the network.

Because Bitcoin runs on a different network to Ethereum, you cannot use BTC on Ethereum. So, WBTC was created in order to use a BTC-backed token on Ethereum. Wrapping 1 BTC produces 1 WBTC—an Ethereum-compatible, ERC-20, token that is pegged 1:1 with Bitcoin. In other words, every WBTC is fully redeemable for one BTC. 

WBTC is beneficial to Ethereum because it increases accessibility, liquidity, and interoperability. With WBTC, BTC holders can use the Ethereum network, bridging the gap between crypto’s two largest ecosystems. You can wrap your BTC to convert it into WBTC, and also unwrap your WBTC to convert it back into BTC.