Bitcoin on the Ethereum Blockchain

• Bitcoin and Ethereum both serve unique but separate purposes in the crypto economy.
• Bitcoin is the oldest and most valuable cryptocurrency due to its unique scarcity, security, and decentralization. It pioneered the trail that many digital currencies have subsequently followed and hasn’t looked back since.
• Ethereum has become the world’s second most valuable cryptocurrency because of the vast DeFi ecosystem it supports. Ethereum’s programmable smart contracts allow developers to build applications for lending, borrowing, providing liquidity, and much more. Despite both having valuable use cases, Ethereum and Bitcoin cannot interact directly within each other’s blockchains.
• To navigate around this hurdle, a group of developers came up with a token that represented the value of Bitcoin in 2019. This Bitcoin token can integrate with Ethereum-based wallets, DeFi applications, and smart contracts. Known as Wrapped Bitcoin (WBTC), holders get the best of both worlds. Wrapped Bitcoin follows Bitcoin’s price exactly but is usable with Ethereum-based products.