WBTC stands for Wrapped Bitcoin, which is a type of cryptocurrency that is backed by Bitcoin. WBTC is created by locking up Bitcoin in a smart contract and issuing a corresponding amount of WBTC tokens on the Ethereum blockchain. Each WBTC token represents one Bitcoin, making it a 1:1 pegged token.
The creation of WBTC has several benefits. Firstly, it allows users to access the Ethereum ecosystem with Bitcoin. For example, WBTC can be used to trade on decentralized exchanges, lend on lending platforms, and participate in DeFi applications. Secondly, WBTC makes it possible to use Bitcoin in smart contracts on the Ethereum blockchain. This opens up new possibilities for Bitcoin, such as being used as collateral for loans.
The WBTC token is managed by a consortium of companies called the WBTC DAO. The DAO is responsible for the issuance and redemption of WBTC tokens and the custody of the Bitcoin that backs them. The consortium includes several prominent companies in the crypto industry, such as BitGo, Uniswap, and Kyber Network.
What is a WBTC Bridge?
WBTC bridges are an essential component of the Web3 ecosystem. These bridges allow the transfer of WBTC tokens between different blockchain networks, such as Ethereum, and other chains including BNB, Polygon, and others. By bridging WBTC, it can be traded on DEXs and used in DeFi platforms on that chain.
It's important to note that this process is different from wrapping Bitcoin in a smart contract.
How to Bridge WBTC at ChainPort in 3 Steps
Step 1 - Connect Your Wallet
Go to ChainPort's app (https://app.chainport.io/) and connect your wallet. ChainPort supports Ledger, Trezor, Coinbase Wallet, Wallet Connect, and Metamask wallets. Select the wallet with the WBTC you wish to bridge.
Step 2 - Select the Chains & Token
In the drop-down menu, select the source and target blockchains you wish to bridge WBTC from and to. Currently, the following chains are supported: Arbitrum, Polygon, Base, Optimism, Ethereum, Avalanche, and BNB. Select the WBTC as the token you wish to bridge from the dropdown menu.
Step 3 - Confirm Tx & Get Tokens
Review all related information, including gas fees and the token, before confirming the transaction. Once you have confirmed all details, approve the transaction and wait a few minutes for it to be processed. Afterward, your WBTC has been successfully bridged to its target chain.
WBTC Bridge Supported Chains at ChainPort
At ChainPort, you can bridge WBTC securely and easily to the following chains:
How Does the WBTC Bridge Work at ChainPort?
ChainPort's WBTC Bridge functions through Li.Fi, a bridge aggregator. The integration of Li.Fi in ChainPort enables the transfer of WBTC between Ethereum and other blockchain networks.
With Li.Fi's seamless integration at ChainPort, users can securely and rapidly bridge a vast range of assets, including WBTC, WETH (Wrapped Ethereum), and USDT. This bridging approach automatically selects the most efficient bridging route based on security, speed, and cost.
Why Use a Cross-Chain Bridge?
Cross-chain bridges like ChainPort's WBTC Bridge enable the transfer of digital assets across different blockchain networks. This is particularly useful for WBTC, which is an ERC-20 token on Ethereum, as it allows it to be used on other blockchain networks. By bridging WBTC, users can access a wider range of applications and use cases.
Conclusion
In conclusion, the creation of WBTC has opened up new possibilities for Bitcoin, allowing it to be used on the Ethereum blockchain. The WBTC DAO is responsible for managing the WBTC token, and WBTC bridges like ChainPort's WBTC Bridge enable the transfer of WBTC between different blockchain networks. This allows users to access a wider range of applications and use cases, making it a crucial component of the Web3 ecosystem.
About ChainPort
ChainPort is a leading cross-chain bridge solution built by DcentraLab, a blockchain innovation hub with over five years of expertise. With a successful track record in driving innovation, DcentraLab is now revolutionizing cross-chain interoperability through ChainPort.
ChainPort stands at the forefront of blockchain interoperability, delivering a seamless cross-chain bridge that connects all major EVMs and Cardano.
DcentraLab has built several other notable blockchain and DeFi products. These products include Hord, a liquid staking derivative platform for Ethereum, and TokensFarm, a DeFi farm-as-a-service provider.
