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Hello steemians, am glad once again to participate in this week’s lecture and homework task. I read through the lecture and have learnt a lot through it. Thanks Prof @pelon53 for this great lecture on the in-depth study of wrapped tokens. To this, I will be answering based on the professor’s task.
1.- Name at least 2 Blockchains that use the Wrapped BTC, excluding Ethereum, and show screenshots. Explain.
The two blockchains using the wrapped BTC excluding Ethereum are; Binance Smart Chain (BSC) and Tron blockchain
Screenshot of Binance smart chain (BSC) is shown below:
Screenshot of Tron blockchain is shown below:
The Binance Smart Chain (BSC)
Binance Smart Chain (BSC) is a blockchain that also uses the wBTC. It has a native token that can be converted to wBTC through a Binance Bridge. This Binance bridge makes it possible for the conversion of the Binance Smart Chain native token to the wrapped Bitcoin as well as burning the wrapped Bitcoin back to the Binance Smart Chain native token too. The burning of the wBTC back to BSC native token is made possible via the peg in and peg out system.
The Binance bridge is a platform that carries out this conversion in an easy within a short period of time dependent on the blockchain where it is carried out. This conversion can be carried out via this platform without having to register on it because it is a public source address.
The Tron Blockchain
The Tron Blockchain is also another blockchain that uses the wBTC. The Tron blockchain is a blockchain that uses the TRC-20 tokens which are compatible with ERC-20 tokens. The wBTC was created on the Ethereum blockchain and the Tron Blockchain by the same company to aim of using digital currencies that does not support the BTC within the Tron network. There are different wrapped tokens which exists in the Tron network such as the wETH, wBTC, etc. The BitGo Company are responsible for the minting or creation of wBTC so as to be used for transaction on the Tron blockchain network.
2.- What is the difference between the wETH of the Ethereum platform and the wETH of the TRON platform? Explain.
wETH of the Ethereum platform works as a stable coin but the wETH of the Tron platform does not work as a stable coin
wETH of the Ethereum platform cannot be burn to be converted back to Ethereum but for wETH of the Tron platform, it can undergo burning which helps in controlling the price variance between the original token and the wrapped token.
wETH of the Ethereum platform is a wrapped token built on the Ethereum blockchain and so makes it controlled by the blockchain but wETH of the Tron platform is not built on the EThereum blockchain but coined by the BitGo company and so makes it controlled by the BitGo company.
3.- Make an investment of at least $ 5 of a Wrapped token. Explain the process with screenshots. You can use the JustSwap platform.
For this task, I will be using the Binance Exchange platform to make the investment as shown below
- I first opened the Binance App, then I clicked on the trade option as shown below
- Then, I choose the cryptocurrency pair I want to invest on, as for this case which is wBTC/BTC as shown below
- Then, I inserted the amount of BTC I want to invest at the current market price as shown below and then clicked on buy wBTC
4.- Explain in detail the Wrapped token of the TRON Blockchain. Show screenshot.
Wrapped token of the Tron Blockchain are currently four in number and this can be gotten in the Tronscan block explorer. These wrapped tokens has been developed into the decentralized finance system of the Tron network to attract more users to the blockchain as well as making the network popular to the public. The following wrapped tokens are: wETH, wBTC, wTRX, and the wBTT.
These four wrapped tokens have diverse characteristics and function and as such are grouped into two groups, which are: the Tron wrapped tokens and the BitGo introduced wrapped tokens
Tron wrapped tokens comprises of the wTRX and the wBTT. The wTRX is a TRC-20 supported token which is used in some certain smart contracts in the Tron network while the wBTT is a TRC-10 supported token which is used in implementing tokens in the virtual machine of the Tron blockchain.
Details of the following wrapped tokens are shown below in the screenshot
wTRX:
wBTT:
BitGo introduced wrapped tokens comprises of the wBTC and the wETH tokens. They are TRC-20 supported tokens which allows for their easy usage in the Tron blockchain. The BitGo Company are responsible for the creation (minting) and burning of the wBTC and wETH tokens in the Tron blockchain network.
Details of the following wrapped tokens are shown below in the screenshot
wBTC:
wETH:
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 wrapped token means producing or making (creating) new wrapped tokens.
Before a wrapped token is mint, the owner or the trader of the token takes the first step in which he/she entrust everything to a caretaker to oversee the business. Firstly, the owner of the token adds those who are trading the wrapped tokens to the chain as well as circulating the wrapped tokens to the users then the overseer of the token is given the right to creating the private keys which the miners will use in minting or creating new wrapped tokens.
For instance, I am the initiator of a particular wrapped token, and I want to create may be 10 wETH, first I will send some amount of ETH to the overseer of my business, then he/she will use special private keys in creating or minting wETH and sends it as contract back to me. When I receive the wETH, I will then start circulating the wETH to the users that I added to the chain.
Burning a wrapped token is the process of changing the created or minted wrapped token back to the original token. Take for instance, I am the initiator of a wrapped token, example wETH. I have this wETH but I want ETH from the wETH that I have, I will now burn my wETH which must be confirmed by my business overseer and then the amount of the wETH I burnt to get ETH will now be removed from my wETH.