Wrapped Bitcoin (WBTC) is the ERC-20 token that anchors Bitcoin on Ethereum and is issued in a ratio of 1 WBTC = 1 BTC.

By using Bitcoin to bring more liquidity to the Ethereum network.

Anyone who wants to use BTC to pay for or exchange ETH needs to do so through a centralized exchange.

Users can exchange WBTC 1:1 for BTC at any time. By holding WBTC, they can use bitcoin equivalent wherever ERC20 is used.

To receive WBTC, the user applies for tokens from the merchant, who then executes the required KYC/AML procedures and verifies the user's identity. Upon completion, the user and merchant perform their swap, with the user's Bitcoin transferred to the merchant and the merchant's WBTC transferred to the user.

WBTC tokens are issued on Ethereum, and are 1:1 linked to Bitcoin. All issued WBTC will be supported by Bitcoin. Each bitcoin stored by the custodian can correspond to the total number of issued WBTC, and can be verified on the chain. When the owner converts the WBTC into Bitcoin, the WBTC is destroyed.

The WBTC token framework has three main components: receipt, minting and destruction. 1. Receive: To receive WBTC, you need to receive tokens from WBTC merchants. The merchant will perform KYC/AML procedures and verify your identity. Once completed, the transaction is executed, transferring bitcoin to the merchant and WBTC to you. 2. Coinage: Coinage refers to the process of creating new tokens. Coinage in the framework is initiated by the merchant and executed by the custodian. 3. Destruction: Destruction refers to the act of exchanging Bitcoin into WBTC token. Only the merchant address can be destroyed. The amount to be "destroyed" is deducted from the merchant's WBTC balance (on-chain) and the WBTC supply is reduced. In addition, WBTC requires trust in people and systems, not pure code. To improve trust and transparency, WBTC conducts regular audits and publishes all on-chain transactions and validations for bitcoin and Ethereum networks. Anyone can see how many BTCS have been sent from the WBTC address on the Bitcoin blockchain, match the transaction with the creation of the WBTC, and verify the WBTC destruction process to exchange BTCS on the chain.

WBTC realizes the technical features of decentralized ecology, smart contract, consensus mechanism and multi-chain parallelism. At the same time, the layout is carried out at five levels, including gamification ecological chain, copyright ecological chain, content distribution ecological chain, blockchain digital e-commerce chain experiment and blockchain network certificate.

Tied 1:1 to Bitcoin, all WBTC issues will be backed by Bitcoin, plus WBTC users will be able to use Bitcoin in a variety of new decentralized use cases, including on decentralized exchanges (DEX), as staboins or as collateral for loans, For payments and flexible smart contracts within the Ethereum ecosystem.

Is the first erC-20 version of BTC and has 1:1 full reserve support because reserve proof is on the Bitcoin network and therefore can be verified on the blockchain.

Policy impact and market regulation risk.