Wrapped Bitcoin (WBTC) is a token that represents Bitcoin on the Ethereum blockchain. It allows Bitcoin holders to use their assets in decentralized finance (DeFi) applications, enabling activities like lending, trading, and liquidity provision.Each WBTC is backed 1:1 by actual Bitcoin held in reserve by custodians. When a user wants to obtain WBTC, they deposit Bitcoin, which is then converted into WBTC. This token can interact with Ethereum’s smart contracts, providing greater utility for Bitcoin holders.Wrapped Bitcoin enhances interoperability between Bitcoin and Ethereum’s ecosystem. It combines Bitcoin’s security and value with Ethereum’s flexibility and functionality. This allows users to access a broader range of financial services while still holding their Bitcoin assets in a more versatile form.In summary, WBTC bridges the gap between different blockchains, opening up new opportunities for users to leverage their Bitcoin within the Ethereum ecosystem.