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Have you heard of wrapped tokens and they can do?

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So a wrapped token is basically a crypto token that is pegged to the value of another crypto, while the original is wrapped into a digital vault and the new token itself is minted for transacting on other platforms. The wrapped tokens usually allow non-native tokens to be used on other blockchains

All blockchains have different functionalities and how they operate so they are not compatible with each other. How it is, BTC and Ethereum operate on different blockchains which have different functions so it’s impossible to use BTC on Ethereum. In the case of wrapped tokens, they offer a different way for this to be possible, that is, users can fully utilize non-native tokens on a blockchain by acting as a bridge between the different blockchains thereby increasing interoperability between the systems.

There’s also what we call WBTC (Wrapped Bitcoin) and WETH (Wrapped Ethereum) Wrapped Bitcoin's purpose is to make Bitcoin usable in the decentralized finance (Defi) space. Bitcoin and Ethereum operate on a different level. That is, not able to communicate with one another because they were created separately at different times, making them have different characteristics and functions.

The wrapped Bitcoin (WBTC) is basically an Ethereum token ERC-20 that represents Bitcoin, it allows Bitcoin operates on the Ethereum network. The value of 1 wrapped Bitcoin (WBTC) is equals to 1 Bitcoin (BTC), and the WBTC can also be converted to BTC and BTC can be converted to WBTC.

*The Benefit The wrapped Bitcoin (WBTC) has its benefits and the benefit is its compatibility ability, being able to be compatible with smart contracts, Ethereum wallets, and also decentralized applications (dapps).

WETH (wrapped Ethereum) As we know ETH or Ether is the native currency of Ethereum and was actually created before the standard ERC-20 was implemented. The ERC-20 is used for issuing and also creating smart contracts on the Ethereum blockchain, making ether not compatible with ERC-20 and can’t be directly exchanged for the ERC-20 tokens either. The wrapped Ethereum can also be converted back to ETH.

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