Hello steemian
We are in week 6 of season 4 of the Steemit Crypto Academy. Today we will be looking at wrapped tokens a lecture that was given by professor @pelon53. Below is the answer provided for the question asked.

Question 1

Blockchains are created in such a way that they can interact with themselves. Meaning two different blockchains can't understand what is happening between them for example, the Ethereum blockchain doesn't know what's happening in the Binance blockchain with each native token being so peculiar to its blockchain which was created. For example, the Ethereum native token is Eth and it can not be used in the Binance blockchain because Binance has its native token which is the BNB. And now this is where the wrapped tokens come into play. This wrapped token helps two different blockchains to interact.

Some blockchains that use wrapped tokens include

• Binance smart chain
• Tron Blockchain

Binance smart chain

The Binance Chain is one of the blockchains which uses the wrapped BTC. Binance upon understanding that blockchains can't interact decided to bridge the gap by introducing the Binance Bridge Project. This project is created to allow blockchains to interact with one another. The project is aimed at interactiveness between the different blockchains and this is realized by letting the wrapped tokens to the binance smart chain.

The wrapped token of BTC on the binance smart chain is called the Binance-Peg BTCB Token. Binance-peg is a Bep-20 token which has several uses on the blockchain.

Now we open the binance smart chain explorer by clicking Explorer here with the BTCB being ranked 5th as per its volume on the binance smart chain as seen below

Together the details of the token we then click on it as seen below.

It can be seen that the BTCB token has a total supply of 112,501 and a total number of holders of 163,764 addresses.

For the users to use the bridge project of the binance smart chain they must convert the native token of the blockchain the want to sent to binance smart chain by Peg in. The Peg in feature is a feature which allows users to be able to convert from any blockchain into the binance smart chain. That is for a user with Bitcoin to convert to binance smart chain, that user will have to select the smart chain and then convert to a wallet.

In converting from the BTCB to another native token, the process is know as Peg out.

Tron Blockchain

BitGo company in January 11th,2021 launched Wrapped BTC (WBTC) on the Tron blockchain as TRC-20 with this launch of wrapped token aimed at aiding and developing the decentralized finance (DeFi) on the tron blockchain and also to provide access to holders of BTC on the Tron ecosystem.

The wrapped Bitcoin holders can make use of their BTC in several ways on the Tron blockchain such as trading on the decentralized exchange, payments etc. The price of the wrapped Bitcoin which is also BTC TRC-20 is equivalent to the price of Bitcoin itself.

From the screenshot below from CoinMarketCap we can see the price of Bitcoin TRC-20.

From the above screenshot, we can conclude that the price of the Wrapped Bitcoin is pegged or thesame as that of Bitcoin itself. It is also important to note that those with wrapped BTC and also unwrapped them to the native BTC if the want to use it.

Question 2

• The wETH is a wrapped Ethereum tolen that was created to be used for all ERC-20 standard projects whereas wETH of Tron blockchain is a wrapped token type for TRC-20.

• The gas fee of wETH is low for Ethereum when it is exchanged with other ERC-20 tokens because the operations are on the same blockchain whereas that of wETH of Tron is higher

• wETH token of ethereum can only carried out operations with ethereum build build project while the wETH of of Tron is used on the Tron network to be use for decentralized finance and also on projects that are built on the Tron blockchain only.

• wETH was created base on the initiative of the Ethereum blockchain and she the need arise they created the wrapped token. The Ethereum blockchain had to be using the ERC-20 it was not compatible then that created the wETH whereas the wETH of the tron network was created by BitGo so it could help with the development of the decentralized finance (Defi) which was launched in January 2021.

• The unwrapping process of wETH of Ethereum network is easy and less complex since all operations are within the same network but with the wETH for Tron is a bit complex and difficult since it's done on different networks. The

Question 3

For this transaction to be done, I will begin by logging in to my Tronlink wallet there will be using justswap dApp because am familiar with it and it's easy carrying out a transaction. With my Tron wallet already funded, I begin immediately

When I open my Tronlink wallet on the homepage below where my wallet balance displaying after the send, received next is the swap button then I clicked on swap.

Then I was taken to the next page where I selected market then choose JustSwap as seen below

I was then led to the JustSwap homepage which also had the display of my balance as seen below

Now being in the platform and the exchange section, I will select my chosen token from a list of display tokens and the token am selecting is WBTC. An alternative way of looking for the exact token if not listed on the exchange is by copying its contract code and then searching.

We insert the amount of Tron that we want to exchange and in my case, I will be exchanging 55 TRX which is equivalent to $5.43 and I will be buying 0.00008932 WBTC and a liquidity provider fee of 0.165 TRX then Click on the swap button as illustrated below

The next page will open with detail of our to be processed transaction indicating how much WBTC token we will receive for our Tron and shows the provider charge fee then I clicked on confirm

The swap was fast and the payment was confirmed in a matter of minutes and the transaction registered on the tronscan then a page pop up indicating that the transaction was successful and the swap completed.

When I open my tronlink and open to all assets there is my bought token.

Question 4

The Tron network has been on the headlines these past months this is due to its rapid growth and development within the blockchain ecosystem. This growth has seen the blockchain engage to accepting changes, updates, and advances attract the eyes of investors which has so far seen it get included in the Wrapped token network and the Tron network also being able to handle bigger blockchains such as Bitcoin and Ethereum in the form of WBTC and WETH tokens with these two not being the only wrapped tokens it has others include;

• WBTC

This WBTC was added to the Tron platform to let investors be able to provide liquidity with money that it has in BTC to other DApps and projects which work on the blockchain. It was created by BitGo and it's a centralize TRC-20 token.

• WETH

WETH is the wrapped token for Ethereum it has a 1:1 value with ethereum. These to lens are responsible for burning, blocking, and returning exchange tokens to investors it is also a centralize token that was created by BitGo.

• WTRX

From has created it's own wrapped token which is found in the transacan as a TRC-20 token. This token was developed by the Tron platform itself making it a decentralized token.

• WBTT

This token is somehow not compatible with some smart contracts within other networks and it very useful for the Tron network. It also has the ability to work between to networks with its original token belonging to the TRC-10 group.

Question 5

Minting

Minting is a process whereby new WBTC or Wrapped tokens are created. It is a process carried out by 3 individuals. The process of minting can be explained as follows: a user who needs a wrapped token goes to a merchant who intends is running short of the wrapped tokens then must deposit a request to a custodian who is representing BitGo and is in charge of producing these new tokens depending on the request by the merchant.

After the custodian receives this request he waits for 6 confirmations of BTC operations before he can begin the minting process. As the new wrapped token is created, it is then sent to the merchant so that it can be distributed.

Burning a wrapped token

The reverse process of minting is the burning where the merchant makes a BTC request to the BitGo custodian and the equivalent amount of WBTC is transferred. In this process, the custodian must wait to complete the action which increases to 25 when the confirmation of 25 is completed, the BTC amount requested is sent back to the merchant and he then sends it happily to the user.

The burning of such tokens is very important because of this project the process becomes irreversible and overspending is avoided thereby causing a balance between tokens issued and the token which is spent.

Example