Ethereum and DeFi Have Really Pushed Bitcoin Ahead
It is designed to be a fully trustless environment, and as it turns out, many people who are engaged in DeFi are using bitcoin units as “collateral” while trading assets. The process – known as wrapping bitcoin or WBTC – takes the currency and uses it in popular apps so people can gain commissions and interest.
Chen Fang – the chief product officer at Bit Go and the man largely behind the process of wrapping bitcoin – explained in an interview: The process has become so popular that many mainstream crypto trading platforms – such as Coinbase Pro, designed primarily for institutions and professional traders – have given their customers the option of wrapping bitcoin, thereby ensuring their customers can gain access to this new and growing trend. Noble further stated that wrapped bitcoins present less risk to traders given they involve more anonymity and prevent regulators from viewing people’s activity too much.