Author: misamaliraza94
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What you`ll learn
What you’ll learn: Why do we need crypto bridges? How do they work? Ethereum bridges & industry examples Safety, security, potential pitfalls
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Are Wrapped Tokens Safe?
More concerning than slippage is the underlying risks posed by the wrapping process, which for Bitcoin, the biggest wrapped market, has to go through centralised Custodian. Because Bitcoin is not Turing Complete wrapping cannot be automated via Smart Contract, so wrapping happens through centrally controlled programs like BitGo. This means that a decentralised asset can…
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Disadvantages of token wrapping?
If we go back to Coinmarketcap and compare the prices for native BTC and wBTC you’ll find that the peg between them isn’t exactly 1:1, this is because the minting and burning process isn’t 100% efficient. That price difference is known as slippage which means that you will potentially lose value as you wrap and…
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Wrapped Ethereum
Strangely enough, you can wrap Ethereum to create wETH, and use that with ERC-20 compatible digital applications, because Ethereum’s native currency (ETH) was created before the ERC-20 token standard was introduced. One of the biggest challenges facing Ethereum is scalability. It has become a victim of its own success, with the cost of Smart Contract…
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The benefits of wrapped tokens?
You can think of each blockchain as a silo of potential value. Sometimes a Bitcoin holder will want to use the value their BTC represents to realise an opportunity within a separate blockchain. The most obvious reason is trading. Most trading by volume happens on centralised exchanges – like Coinbase, Binance or Kraken – and…
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Wrapped Bitcoin
But what happens if, for example, you want to use Bitcoin within an Ethereum-based DEFI application, to gain interest or take out a loan? You can’t, because the two sets of rules aren’t interoperable. Bitcoin is not Turing Complete and cannot interact with Smart Contracts. Think of it like trying to plug in a European…
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What are Wrapped Tokens and how do they work?
If you are relatively new to cryptocurrency and are browsing the popular price comparison site Coinmarketcap to check the value of Bitcoin you’ll be confused to see more than one price. There is Bitcoin, ranked one by market capitalisation, and something called wrapped Bitcoin, ranked at #17 with a very similar, but not identical price.…
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What you`ll learn:
What you’ll learn: How wrapped tokens work Bitcoin and Ethereum examples Advantages and disadvantages Safety and security
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Web 3.0 and Blockchain’s interconnected future
Web 3.0, aka ‘The Spatial Web’ is a set of developments across different technologies becoming increasingly interconnected. Blockchain technology is one development; also included are Artificial Intelligence, Augmented and Virtual Reality, Internet of Things, 5G networks, 3d Printing and many more. Imagine a world where AI systems run our transport, intuitively display us information through…
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NFTs, Supply Chains and Identity
Non-Fungible-Tokens or NFTs are a specific type of cryptographic token based on blockchain technology. In contrast to Bitcoin or other cryptocurrencies that are fungible – can be freely exchange for other tokens – NFTs represent something unique and are thus not mutually interchangeable. NFTs are used to create digital scarcity and power applications that facilitate the…