WRAPPED STEEM AND WRAPPED BITCOIN EXPLAINATION
My entry October 5th, 2020 steemcryptochallenge week #2 Diving into Diving into Defi.
Understand wrapped bitcoin
My brief knowledge about wrapped steem
List of Native tokens
Bitcoin
Ethereum
Steem
Tron
Ethereum {ERC} Token
Ethereum was introduced into cryptocurency world and a large number of people are willing to own their token on ethereum which requires cross chain trading.
Cross chain trading is a digital representation On the ethereum blockchain of token.
Example: The WBTC is an etherum blockchain token Which represents bitcoin token. The process requires bitcoin to be locked in a personal wallet, and the trader of bitcoin on ethereum blockchain is given an ERC token. This allows bitcoin to be traded on Uniswap application.
But, the ethereum version of wrapped bitcoin is a ERC token.
TRON {TRC} TOKEN
Tron blockchain provides the cryptocurrency world, cheaper and faster to the application which explains smart contract. This same need of digital representation of non native token on tron blockchain has lead to the development of TRC TOKEN.
WRAP YOUR TOKEN FOR CROSS CHAIN TRADING
If you want to benefit from an investment opportunity on another blockchain, where your token is a non native. You will need a digital representation of your token on blockchain.
In terms of STEEM, we have project W, which create TRC token which is a digital representation of steem. This gave steem token users a privilege to invest here.
Example: If you want to invest your steem in a project like JUSTSWAP.
Firstly, you need to create a digital representation of your steem token on Tron blockchain using www.projectw.io. to wrap your steem.
Secondly,then your steem is exchange on a WST Token, which is a TRC20 Token. Which can now be invested in Tron blockchain in Defi application running on Tron blockchain.
Thirdly, you can transfer your WST to UNISWAP and deposit into a WST-TRX liquidity pool. Now you are investing in Tron Defi With your wrapped steem.
Thanks to @steemcurator @steemcurator01 @steemcurator02 for the initiative.