BitGo, a blockchain security company that offers wallet services to crypto users, headquartered in California, has recently revealed that it will be launching an ERC20 token, Wrapped Bitcoin (WBTC), which is the world’s first token in the aspect that it will be backed 1:1 with bitcoin. BitGo, along with many other partners, is looking forward to bring bitcoin to ethereum network in order to introduce bitcoin’s stability on an ethereum decentralized platform.
BitGo has partnered with Kyber Network and Republic Protocol to launch WBTC. All these founding members will be aided by many other decentralized projects for the launch. MakerDAO, Airswap, Dharma, IDEX, Prycto, Compound, DDEX, Hydro Protocol, Set Protocol, RadarRelay and Gnosis are the major decentralized projects who will be assisting in WBTC launch in January 2019.
While speaking to BlockPublisher, a representative of Kyber network, TN Lee told the reason behind choosing the ethereum platform specifically for the project. He stated:
Many projects are building on top of Ethereum as it is the most widely-used open-source public blockchain with smart contract functionality.
Proof of reserves will be accompanied with blockchain explorer like Etherscan so that users are able to check the bitcoin in custody and verify it on the blockchain. BitGo has explained the level of importance and priority devoted to the transparency with its launch of BitGo Trust Company. It further assures to install a similar level of transparency and trust with their WBTC.
BitGo claims to acknowledge the interest of users who are keen in tokenization of assets such as security, commodities etc. Therefore, BitGo aims to contribute to tokenization platforms with its token. BitGo’s CTO gave the analogy of banknotes and gold to convey the idea behind WBTC. He explained that WBTC works in a similar regard as the banknotes i.e substituting the heavy gold while maintaining the acceptance standards interchangeable with gold.
WBTC, first of its kind, is expected to launch on ethereum mainnet chain. It is suggested that once the cost of the main chain surpasses the economic periphery, a solution addressing the scalability can be easily worked out with all the present members and partners of WBTC in order to enhance the transaction throughput.
Edited On 5.58 PM PKT 11/2/2018 for fact correction.