Launch Of The New Ethereum Based Token Backed By Bitcoin. A new Ethereum-based token set to launch next year. This token is 1:1 back with the world’s largest cryptocurrency Bitcoin (BTC). The CTO of BitGo, Benedict Chan, in a blog post released this information.
On the Ethereum network, the new token will launch. Even though every week Ethereum launches a new token but this Ethereum based token has special importance as it is backed 1:1 by Bitcoin. The new ‘Wrapped Bitcoin’ token (WBCT) has the power of Bitcoin as well as the flexibility of ERC20.
Some of the companies that have taken the initiative to launch this token are: Kyber Network, Republic Protocol, as well as the U.S Cryptocurrency wallet and security company BitGo, along with several others
Wrapped Bitcoin token: WBCT
Launch Of The New Ethereum Based Token Backed By Bitcoin. Bitcoin will back the new ERC20. Also, it will have the stability of BTC and the flexibility of Ethereum. Several decentralized applications (dApps) and blockchain projects will have a Bitcoin-backed ERC20 token. Such as Kyber Network, Republic Protocol, MakerDAO, Dharma, Airswap, IDEX, and many others.
BitGo will be in charge of providing custodial services for the new WBTC. It will hold a reserve of Bitcoins which will be backed to all the minted WBTC tokens that are in circulation using the Ethereum network. This protocol will help users to cross verify information about the reserves using two blockchains.
The tokens are backed 1:1 with Bitcoin. In order to keep track of the number of BTCs stored, every Bitcoin will be accounted to a dashboard displaying addresses and balances. Users can then verify the amount of Bitcoin held Ethereum network.
The main intention is to increase the use case of Bitcoin and act as a peer-to-peer payment tool. It enables users to use the most popular virtual currency for decentralized applications, Bitcoin, that can run on ETH.
There will be registered merchants that will be disseminating and redeeming WBTC tokens to users. Merchants on the Kyber Network and Republic Protocol will be completing transfers of WBTC for bitcoin and vice versa, to perform atomic swaps.
“It’s very similar in some ways to how people created banknotes that represented a pound of gold. A pound of gold was heavier and it took longer to trade. You could use a note which represented a pound of gold and it was well accepted.”
-CTO of BitGo, Benedict Chan
At major decentralized exchanges, transparency is the key issue. Due to the lack of transparency, many stablecoins have failed to provide real data. However, it is not easy to reveal the exact amount of dollars held in bank accounts. Bitcoin, however, doesn’t require a virtual bank to function since it is able to be traced at all times. Also, such transparency will bring trust to the digital currency.
“For BitGo, WBTC is an opportunity to contribute technical leadership to the advancement of blockchain and tokenization platforms. We take a practical approach towards development: engineering and security efforts put into the creation of WBTC will, however, leverage towards supporting future asset tokenization.”
-Reported in an official press meet.
Launch Of The New Ethereum Based Token Backed By Bitcoin. Loi Luu, CEO of Kyber Network, expressed his views about the official launch of the WBTC token which will take place in January of next year; a decentralized autonomous organization (DAO) will look after the ongoing developments of the project.
‘One of the main reasons why many projects support this initiative is because there’s a DAO that’s going to govern the whole project including making major upgrades, adding more features, adding more merchants, even adding new custodians as well.”
-Loi Luu, CEO of Kyber Network