The Ethereum network (ETH) is ready to launch a Bitcoin (ERC-20) Bitcoin (BTC) token. In this way, the Ethereum network will have a token that is equivalent to the original Bitcoin (BTC). This will be possible after the network creates a digital asset paired with the price and the actual unit of the cryptoman. Therefore, a Wrapped Bitcoin unit (WBTC) will also be equivalent to a Bitcoin unit (BTC).
The Ethereum network (ETH) has several crypto-coins in its decentralized platform. Wrapped Bitcoin (WBTC) is expected to be the next digital asset to be launched by the Ethereum network. Therefore, the plans of the company are that the (WBTC) is already available in January 2019.
Why does the Ethereum (ETH) network want to create a Bitcoin?
It sounds strange to think that the Ethereum network (ETH) is investing in a bitcoin-paired crypto-daemon (BTC). However, this digital asset will have the technology of (ERC-20). Therefore, the intelligent contract, not present in Bitcoin (BTC), will be available for the (WBTC). With this, more security and agility in the transactions can guarantee a success to the new token of the Ethereum network.
And the project already has several supporters, who expected a token supported by Bitcoin (BTC), as Ethereum proposes. BitGo is one of the companies that work together with the Ethereum network in the project (WBTC). In addition, Srt Protocol, Kyber Network, Republic Protocol, Idez and Hydrogen are also partners of the Ethereum network in creating the Wrapped Bitcoin (WBTC) token.
Ethereum Network will make Bitcoins (BTC) reservation before launching (WBTC)
Just as there are stablecoins, the Wrapped Bitcoin (WBTC) will act as one currency tied to another. In this way, the price of the (WBTC) will be proportionally equal to Bitcoin (BTC). This happens just like stablecoins, which are pegged to the US dollar and other currencies, for example.
In addition to offering smart contracts, Wrapped Bitcoin (BTC) will rely on the decentralization of the Ethereum network. This may further maximize Bitcoin's sales (BTC), since the token (ERC-20) should be anchored to the crypto-currency. Therefore, a Bitcoins (BTC) reserve must be made previously, granting (WBTC) the liquidity necessary to be a successful token for the Ethereum network.