Hello, Steemians, and welcome to Professor @pelon53 's assigned job. I will discuss the foundation and concept of Wrapped Tokens in the blockchain sector in this assignment. I hope you are going to enjoy it.
WRAPPED TOKENS:
First of all what is wrapped tokens,
A Wrapped token is a tokenized representation of another cryptocurrency that is tied to the value of the asset it represents and may be reclaimed for it at any time. It often represents an asset that does not exist natively on the blockchain on which it is produced.
WRAPPED BTC:
Now, what is a wrapped bitcoin,
A Wrapped Bitcoin (WBTC) is an ERC-20 token that is equivalent to Bitcoin on the blockchain network, allowing BTC, smart contracts, and decentralized apps to be integrated. One WBTC equals One BTC, and BTC might well be exchanged to WBTC or WBTC into BTC with ease.
Since the question asked me to mention 2 Blockchains that uses Wrapped BTC excluding Ethereum so I will be using
The Binance Blockchain and The Tron Blockchain:
BINANCE BLOCKCHAIN: (BEP-2/BEP-20)
The Binance Smart Chain network, although we all recognize it, is a blockchain that has been able to integrate Wrapped tokens of currencies such as ETH, USDT, DOT, BTC, XRM, BCH, and other currencies into its list of tokens with the sole purpose of increasing the functioning and the use of native token inside the BSC, using it in the BSC Defi, and attempting to make it more functional among other blockchain networks.
BTCB is a BEP2/BEP20 asset wrapped (pegged) on Binance Chain/Binance Smart Chain with a 1:1 peg to Bitcoin. BTCB is run on a trust-based, centralized approach. The 1:1 peg means that the amount of BTCB wrapped in a public address is the same as the amount of BTC locked in a public address. Binance is the producer of the wrapped BTCB coins due to the centralized and trust-based structure.
TRON BLOCKCHAIN(TRC-20)
Another platform that uses wrapped BTC tokens is the TRON network. The Tron network is a particularly cost-effective network in terms of transaction commissions; it has incorporated a number of Wrapped tokens into its ecosystem to allow them to be utilized with greater variety on the Tron network, these Wrapped tokens include ETH, BTC, BTT, and the same native Tron token.
Users of Tron may simply wrap their bitcoin in WBTC as TRC 20 tokens using BitGo Wallet. Wrapped BTC was used on the Tron Blockchain to strengthen the network's decentralized finance (Defi) ecosystem and to enable various functionalities such as decentralized exchange trading, securitized loan markets, payment systems, and more.
DIFFERENCE IN WETH OF ETHEREUM AND TRON PLATFORM:
Since It's the same thing. Wrapped tokens with certain variations in order to operate on two distinct blockchains, one on the ethereum blockchain and the other on the Tron blockchain. I will be using the table to distinguish some of the properties that they carry:
| WETH on Ethereum Network | WETH on Tron Network |
|---|---|
| WETH on ethereum platform is called ERC-20 Token | Whereas,WETH on Tron Network is known as TRC-20 token |
| It is a token that is utilized on the Ethereum blockchain as a representation of ETH and is not owned by any company. | They are tokens created by the BitGo platform and are accessible for usage on a variety of blockchains. |
| You don't need to burn the token to redeem the ETH because it was wrapped on the same network. | For your ETH to be restored, you must destroy the WETH. |
| ERC-20 is linked to ETH at a 1:1 ratio, implying that price changes have no effect on pricing. | Bitgo is the firm in charge of developing TRON's ERC-20 coins. Despite the fact that it did so in collaboration with other organizations. The price is set at a 1:1 ratio, with 1 TRC-20 equaling 1ETH. It also ensures the security of tokens. |
$5 INVESTMENT ON JUST SWAP WITH SCREENSHOTS:
Since the question asked to use just swap platform, We'll utilize JustSwap's decentralized exchange to purchase a Wrapped token using the TronLink wallet; specifically, I'll purchase the TRON network's WBTC token.
Follow the following steps in order to swap the unwrapped tokens with wrapped tokens,
STEP 1: Search Just Swap on google and then go to the official website of JustSwap, after entering click on the connect to wallet button as shown below:
STEP2:After that click on the Tron link wallet, as shown below:
STEP 3: Accept the invitation in the next step and then click on connect button as shown below:
STEP 4:We may now utilize the Swap since the wallet is already connected. In this example, 52 TRX will be exchanged for 0.00008751 WBTC, which is equal to 5.035 USDT. We press the Swap button.
STEP 5: Confirm the swap in the next step as shown below:
STEP 6: After confirming the swap, it will ask you to sign the smart contract as shown below:
STEP 7: Swap is completed as the report says in the picture below and close it then,
Now as you can see the transaction has successfully completed and I got the required 0.000087 WBTC which equals 5.035 USDT.
According to the Just swap platform, there are a total of 4 Wrapped tokens on the Tron network:
The wrapped tokens names are given below:
- Wrapped TRX (WTRX)
- Wrapped BTT (WBTT)
- Wrapped ETH (WETH)
- Wrapped BTC (WBTC)
The TRON network has made remarkable progress and has been proved, to the point where it now finds itself among numerous blockchains with this latest acquisition since it can now easily manage various sorts of currencies within its blockchain.
The BitGo organization produced two of these wrapped coins for the TRON network(WETH / WBTC), and the same TRON network created the other two (WBTT / WTRX).
WRAPPED BTC (WBTC):
BitGo is a firm that has developed BTC wrapped tokens not just for the ethereum network but also for the Tron network. The token is centralized, and BitGo protects and blocks their respective ETH and BTC tokens at a wallet address until the user wants to reverse the procedure.
Total Supply: 99.89000964WBTC
Circulating Supply: 99.89000964WBTC
Holders: 437
Addresses Transfers: 18,836 Txns
Price:60989.572202 USD
Market Cap/Fully MC: 6,092,248.96 USD / 6,092,248.96 USD
Reputation:OK
WRAPPED ETH (WETH):
Since both WBTC and WETC are very much simple, It, too, is held in Bitgo's custody; the distinction is that it is tied to the price of Ethereum and is distinct from the wETH that operates within the Ethereum ecosystem.
Total Supply: 1,998.598800000000000000WETH
Circulating Supply: 1,998.598800000000000000WETH
Holders: 301 Addresses
Transfers: 2,034 Txns
Price: 4701.610557 USD
Market Cap/Fully MC: 9,396,633.22 USD / 9,396,633.22 USD
Reputation: Neutral
WRAPPED BTT (WBTT):
BTT started out as a TRC-10 token on the Tron network. However, because that group does not trade with other networks, the TRON network created a Wrapped token in the TRC-20 group in order to be able to bargain on other blockchains. The two tokens are pegged to each other in a 1:1 ratio.
Total Supply: 44,361,599,379.629783WBTT
Circulating Supply: 44,361,599,379.629783WBTT
Holders: 50,377 Addresses
Transfers: 1,662,482 Txns
Price: 0.003624 USD
Market Cap/Fully MC: 160,754,580.63 USD / 160,754,580.63 USD
Reputation: OK
WRAPPED TRX (WTRX):
The TRX is the Tron network's original coin. WTRX is a TRC20 Token with the equivalent value to TRX. Deposit TRX to mint an equivalent amount of WTRX, and burn WTRX to get an equivalent amount of TRX. It is utilized in different smart contracts and in the TRON virtual machine.
Total Supply: 17,621,219,600.101140WTRX
Circulating Supply: 17,621,219,600.101140WTRX
Holders: 5,449 Addresses
Transfers: 1,485,624 Txns
Price: 0.098861 USD
Market Cap/Fully MC: 1,742,059,595.71 USD / 1,742,059,595.71 USD
Reputation: OK
The question asked about wrapped tokens minting and burning and also it has functioned really, let's talk about it in detail:
HOW A WRAPPED TOKEN IS MINTED:
Minting is basically a nice word that basically describes the creation of a new crypto asset.
The process of minting a wrapped token includes the development of new wrapped tokens. The customer, the merchant, and the custodian are all active in the process,
The customer is the one who wants the wrapped token, The Merchant is the one who is the holder of the wrapped tokens and the custodian is the one who Fabricates tokens in response to a merchant's request . the custodian can be a smart contract, a multi-currency wallet, or a decentralized autonomous organization.
EXAMPLE:
Let's take WBTC as our example before you can mint one WBTC on the ethereum blockchain the custodian must have received one BTC to place it on hold remember that the wrapped token is pegged to the value of the asset which is why the custodian holds the equivalent asset to mint the wrapped token the wrapping process is as follows:
You send a certain amount of BTC to the custodian according to the amount sent the custodian mints an equivalent amount of WBTC in the Ethereum blockchain and you get your wrapped BTC in this case WBTC.
HOW A WRAPPED TOKEN IS BURNED:
The burning of a wrapped token is simply the unwrapping of the token, basically returning it to its initial value. Burning is the opposite process of minting with the same parties involved. Wrapped tokens are frequently leftover on the system, causing significant harm to the ecosystem's economics. As a result, burning Wrapped tokens has the same impact as burning regular tokens: it significantly reduces the market supply and stabilizes the price.
In the unwrapping process when you ask to change the WBTC back to BTC it gets to the custodian as a burning request the wrapped token gets burnt and your BTC is released back to you in short, the custodian fulfills the duty of the wrapper and then unwrapped.
Example:
Let's say I am the customer and I want my 1 BTC back, that Mercanht has to create the burn transaction of that 1 WBTC to the custodian and then he will wait for block confirmations of the BTC transaction, The custodian send 1 BTC to the merchant Bitcoin address. and hence the Custodian successfully completed BTC transaction marking the burn request.
CONCLUSION:
Blockchain technology is constantly developing, and methods for maintaining excellent communication across multiple blockchains are being developed. Thanks in particular to the advent of Wrapped Tokens, which have facilitated the execution of transactions on many Blockchains utilizing specific tokens that are accessible.
Wrapped tokens are crucial aspects for the interaction of multiple blockchains; without them, countless investors would be unable or unwilling to engage in other projects before getting started, since not everyone is comfortable changing the cryptocurrencies that have been so difficult to get.