1.- Name at least 2 Blockchains that use the Wrapped BTC, excluding Ethereum, and show screenshots. Explain.
2.- What is the difference between the wETH of the Ethereum platform and the wETH of the TRON platform? Explain.
3.- Make an investment of at least $ 5 of a Wrapped token. Explain the process with screenshots. You can use the JustSwap platform.
4.- Explain in detail the Wrapped token of the TRON Blockchain. Show screenshot.
5.- What is to mint a Wrapped token? What is burning a Wrapped token? What is your function? Create an example explaining the process.
image designed in canva
1.- Name at least 2 Blockchains that use the Wrapped BTC, excluding Ethereum, and show screenshots. Explain.
BTCB also known as wrapped BTC is a Bep 2 token fully backed by BTC. It's price is pegged to BTC in a ratio 1:1. It allows the usage of BTC on the binance smart chain effortlessly without having to incur more fees. Also, Bitcoin is not very strong when it comes to DE-fi as a result of its high fees and cumbersome process. In order to tackle this problem, the Bep2 BTC came into existence. Users are able to acquire this token by utilizing the binance bridge to wrap their BTC tokens to BTCB.
Lets explore details of this coin on Bscscan
Price - The wrapped token wBTC is pegged to actual BTC in a 1:1 ratio. Its price at the time of writing this post is @61,551.68
Market Capitalization - $6,924,626,058.28
Total number of holders - There are 163,573 addresses attributed to the token therefore there exist this
Total supply - 112,501 BTCB
The TRON blockchain is another blockchain that uses the wrapped BTC. This token was created through the partnership between TRON and Bitgo for fractionalized purposes and for use in defi protocols.
Details of wBTC on TRONSCAN
Price - $61,548.19
Market Capitalization - $6,148,049.49
Total number of holders - There are 435 addresses attributed to the token
Token supply - 99.89000964 wBTC of which all tokens are in circulation.
2.- What is the difference between the wETH of the Ethereum platform and the wETH of the TRON platform? Explain.
The difference between the Ethereum based wETH and the TRC-based wETH is as follows:
There is no custodian involved in the minting of weth on the ethereum blockchain. In order to get weth, users only need to transfer the base token ETH to a smart contract whereas a custodian is required in the tron platform Bitgo.
To get wrapped ethereum on the tron blockchain, users need to transfer the original token to Bitgo. Bitgo which is the custodian is acting as a digital vault here, and once the tokens have been received and locked by Bitgo the minted wETH will be released on the tron blockchain.The wrapped ETH in the eth network is controlled by the ethereum blockchain whereas the wrapped ETH in the tron blockchain is controlled by Bitgo.
The Ethereum based wrapped ETH also perform functions of a stable coin but the TRON weth is incapable of doing so.
In the Ethereum blockchain, weth tokens do not get burned. This is because there is no custodian, therefore assets are exchanged directly for wrapped tokens. This makes the minted tokens a representation of the ETH in the Defi ecosystem and as such burning is not needed to maintain price whereas
The weth of the TRON platform gets burned in the process of unwrapping, this is because native tokens are kept in a custodian (third party) before wrapped tokens can be minted, therefore in other to unwrap, the wrapped tokens have to be sent back to the custodian (Bitgo) which in turn interpretes this as a burn request.
3.- Make an investment of at least $ 5 of a Wrapped token. Explain the process with screenshots. You can use the JustSwap platform.
Buying a wrapped token
I'll be making this investment using the justswap Dapp nested within the tronlink mobile wallet.
First of all, open the tronlink wallet and click on swap on the interface.
This works if your wallet is already connected to justswap.
I intend to swap my TRX tokens for a wrapped BTC token so I'll select the TRX - wBTC options and input the amount of TRX I intend to swap and click instant swap. A pop up will come up asking to confirm the transaction, Click confirm.
After this you'll be required to input your password (if any) and then the transaction will be processed
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And just like that, I've been able to acquire some wrapped tokens.
4.- Explain in detail the Wrapped token of the TRON Blockchain. Show screenshot.
It's interesting to note that there exists a number of about 50 wrapped tokens in the Tron blockchain. However, just 4 of these tokens are in full functionality at the time of drafting this post and they include:
image gotten from tronscan
- Wrapped BTC - wBTC
- Wrapped ETH - wETH
- Wrapped BTT - wBTT
- Wrapped TRX - wTRX
This is the wrapped Bitcoin token that exists on the TRC network/ Tron blockchain. This integration was made possible by the partnership between TRON and BITgo. This tokenization makes it easy to transmit value at a reduced cost and due to the reduced fees makes it a good option for de=fi and smart contracts.
some details of the wBTC (tron) token are as follows:
Price - $61,548.19
Market Capitalization - $6,148,049.49
Total number of holders - There are 435 addresses attributed to the token
Token supply - 99.89000964 wBTC of which all tokens are in circulation.
This is the wrapped ETH token for the Tron blockchain. It came into being alongside wrapped BTC via the partnership between TRON and BITGO. Through the creation of this token, TRON had been able to create an ecosystem where users can transact with the advantages of high liquidity and access to innovative financial mechanisms.
some details of the wETH (TRON) token are as follows:
Token price - $4757.748548
Market Capitalization - $9,508,830.54
Total number of holders - There are 301 addresses attributed to the token.
Token supply - 1998.598800000 wETH, all tokens are in circulation.
Bittorrent (BTT) is a TRC 10 based token, an offset of the TRON blockchain. The wrapped BTT token allows for compatibility in tranascting between trc 10 and trc 20 tokens.
Some details of wBTT token are as follows:
Token price - $0.003684
Market Capitalization - $163,437,038.64
Total number of holders - There are 50446 addresses attributed to the token.
Token supply - 44,360,627,541.196227 wBTT, all of which are in circulation.
Some details of the wTRX token are as follows;
image gotten from tronscann</center
Token price - $0.100288
Market Capitalization - $ 1,767,207,056.82
Total number of holders - There are 5447 addresses attributed to the token
Token supply - 17,621,242,511.101003 wtrx, all of which are in circulation.
5.- What is to mint a Wrapped token? What is burning a Wrapped token? What is your function? Create an example explaining the process.
Minting a wrapped token
Minting is simply the creation of wrapped tokens to a network. For a wrapped token to come into being (to get minted), there has to be a custodian which can be in the form of smart contracts, decentralized autonomous organizations, merchants, multi-currency wallets etc, think of this custodian as a digital vault. Before you can get one unit of a wrapped token, the custodian must have received one unit of the original token to place on hold. Once this is done, the custodian would mint one unit of the token on another blockchain resulting in a wrapped token.
Burning a wrapped token
Burning of wrapped tokens occurs during the unwrapping process (the process of converting the wrapped token back to the original token). When a request is made to change a wrapped token back to its original token, this request gets to the custodian as a burn request. The wrapped token would therefore get burned and then the original token would be released. From the explanations given we observe that the custodian fulfils the role of a wrapper and unwrapper.
An example explaining the process
Lets imagine a hypothetical situation where I have 1 BTC and wish to transact with a TRON-based decentralized finance protocol. Due to the incompatibility that exists in the networks, I wouldn't be able to transact unless I wrap my token.
In this situation, I can send my BTC to a third-party custodian on the TRON blockchain known as Bitgo, and once Bitgo receives and locks my BTC, it would mint wBTC tokens on the Tron blockchain which would enable me to transact without having to worry about network incompatibility.
If I desire to get my original tokens back in the process of unwrapping. I'll be required to send my wrapped tokens back to the custodian. The wBTC would be burned to keep supply in check and I would receive my BTC back.
Conclusion
Concerning the questions assigned by professor @pelon53 and in adherence to the respective rules highlighted. I've done my research and tried to tackle the intermediate course for the week. I was able to learn new things through the course of this task. I'd leave the assessment to the professors.
Thanks to the steemit team for this wonderful learning opportunity once again. It's been nice so far, I'm forever grateful.
I apologize if there are any mistakes noticeable in the course of making this post, I'd appreciate it if the professor could point that out for me.
Thanks for curating my content :)