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TagsWhich cryptocurrencies support the concept of wrapped tokens?
preetham varmaDec 17, 2021 · 3 years ago1 answersCan you provide a list of cryptocurrencies that support the concept of wrapped tokens? I'm interested in knowing which cryptocurrencies have implemented this concept and how it works.
1 answers
- Wrapped tokens are a concept supported by various cryptocurrencies, including Ethereum, Binance Smart Chain, and Tron. These tokens are created by locking the original cryptocurrency (such as Bitcoin or Ether) in a smart contract and issuing an equivalent token on a different blockchain. This allows users to utilize the wrapped token on the respective blockchain while still maintaining the value and properties of the original cryptocurrency. For example, wrapped Bitcoin (WBTC) is an ERC-20 token on the Ethereum blockchain that represents Bitcoin. It enables Bitcoin holders to participate in decentralized finance (DeFi) applications and other Ethereum-based services. Similarly, Binance Smart Chain and Tron have their own versions of wrapped tokens, providing users with cross-chain interoperability and expanded utility. Overall, wrapped tokens enhance the functionality and accessibility of cryptocurrencies.Dec 17, 2021 · 3 years ago
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