WBTC or known as Packed Bitcoin, The ERC20 marker, supported by bitcoins, is allowed on the Ethereum core network since January 29 for commercial exchange.
The information was widespread Social networks run by Staked confirming not only the introduction of the new token but also the amount of assets issued yesterday. Using WBTC now Ethereum is 65,421 BTC, which can also be used in intelligent contracts for decentralized exchanges, forecasting markets and decentralized loans.
Packed Bitcoin (WBTC) now live!
Currently, the Ethereum block has 65.4217 BTC.
– Staked (@staked_us) January 29, 2019
If this number is true Ethereum would have a higher proportion of bitcoins represented on its network than those currently present Bitcoin side chain, Liquid. According to Liquid Horse data, this blokshon is currently 53.32 BTC, represented on its network, that is, about 12.10 BTC less than those represented in Ethereum via WBTC.
If https://t.co/xAbNgsjy2i is accurate, this means that there is already more BTC representative for Ethereum than there are many ballyhooed liquid sidebar pic.twitter.com/u8yZ0N8o6Y
– Adam Tyree Finch (@atyreefinch) January 30, 2019
The WBTC Marker is an initiative led by the launch of the BitGo cryptographic holder as well as the Kyber Network and Republic Protocol decentralized exchange houses. The introduction of this new marker was announced in October 2018 using a press release explaining that packaged Bitcoin (WBTC) is an ERC20 marker represented by a bitcoins representative ratio of 1: 1 The main purpose of this initiative is to combine Bitcoin liquidity and Ethereum programming language.
WBTC is a protected bitcoins symbolic representative of Ethereum. For users who want to buy Bitcoin Wrapped, go to the office of Kyber Network and Republic Protocol, which owns and distributes this ERC20 marker by exchanging this bitumen. That way, the bitcoins delivered by the casino de cambo are delivered to BitGo for storage, a company that stores them in a multiple safe and delivers them to WBTC.
All the actions of this mark will be registered on the Ethereum network. It will be managed by an autonomous and decentralized organization (DAO), which will include representatives of MakerDAO, Dharma, Airswap, IDEX, Compound, DDEX, Hydro Protocol, Set Protocol, Prycto, Kyber Network, Republic Protocol and BitGo. They explain that in the future, several participants will be able to join this DAO.
WBTC is a kind of representative bridge between the two networks. In this way, decentralized exchange homes that make life at Ethereum can benefit from Bitcoin liquidity, one of the currencies with the largest volume of transactions on the market of centralized exchange centers worldwide, such as Binance, Coinbase and Bitfinex, including it in an anchored marker.
"Today, most transactions take place with bitcoin in a centralized currency exchange home. WBTC changes Bitcoin liquidity on DEX (decentralized exchanges) and allows Bitcoin to use symbolic transactions, ”says a press release.
Another feature offered by WBTC, according to its creators, is that This ERC20 marker will enable Bitcoin users to use Ethereum smart contractswhereas, in a decentralized manner, Bitcoin can abolish protocols on loans, bonds, tokens and forecast markets.
The WBTC seems to be a central alternative to the proposal for the atomic exchange that the cryptocurrency community has developed since last year, allowing interaction between different block chains, using a programmed and decentralized exchange between the two networks. Centralized because the storage of the supported bitcoins will be the responsibility of one central authority.
Token "very centralized"
One of the criticisms most circulating about social networks about Bitcoin Wrapped is that this service will be centralized – a feature confirmed in the initiative. "This marker is very centralized because it is issued by office offices, and BTC is guarded by the unit," they explain in one of the publications.
In addition to centrally issuing and managing units, it is also important to take into account that this label will be audited DAO, represented by representatives of companies and communities participating in the WBTC. One might think that this organization is not as decentralized and autonomous as the crypt currency community could expect.
However, in order to ensure greater autonomy for this service, the DAO institutions will be removed and added to that organization through the democratic votes of its members, thus being able to maintain a greater balance of power between the issuing units.
According to the lack of decentralization, Sunny Aggarwal, a researcher and developer of the Tendermint team, believes that Bitcoins storage is also a high risk service and that these types of tokens secured by a secure crypt currency may be subject to the same regulatory policies as others will stabilize, for example, a marker affixed to the Circle Dollar (USDT) reported by users due to the possibility of censorship. issuers.
Recall that this point of attraction is very centralized and has a very high risk of freedom. It is also in the same regulatory paradigm as things like USDC. https://t.co/lirjrx5xb4
– Sunny Aggarwal (@ sunnya97) January 30, 2019
Customers who purchase WBTC must also take into account the fact that they are betting to change their bitcoins to representative bitcoins, and that they will perform operations on a network that is less secure than Bitcoin. Ethereum is a block chain that has experienced several bifurcations and errors (errors) since its launch. In addition, it does not have the same processing power as Bitcoin, which exposes it to potential attacks.
Among other criticisms and debates after the introduction of WBTC, highlights Twitter Eric Wall – Engineer and Director of Cinnober – who ironically commented on the message: "Ethereum is officially the Bitcoin side chain", an assessment that created a debate about Twitter and equally sarcastic responses from users who believe that Bitcoin has become "A marker" or "decentralized use" Ethereum.
A great day in cryptography. Ethereum is now the official Bitcoin side view. https://t.co/hIzi7SUniv
– Eric Wall (@ercwl) January 29, 2019
Other users replied that the term "side chain" is not applicable to WBTC because Ethereum is not used as a network to validate data from another chain, such as networks such as Liquid, BTCRelay and Lightning Network, which approve Bitcoin transactions.
By definition, "Sidechain is a block chain that validates data from other blocks."
2-way-peg is an orthogonal concept.
– Alex Mizrahi (@killerstorm) January 29, 2019
Ethereum will also not help measure Bitcoin, which is one of the main functions of side chains. However, WBTC creators want to utilize Ethereum's full hold properties to allow Bitcoin to use "greater usability", given that the programming language for this block chain is limited. The same goal is also achieved by start-up companies such as RSK, which have been working for a number of years on the inclusion of intelligent contracts in the Bitcoin network, using the side chain.
Special image after florin / stock.adobe.com