Wrap refers to the process of taking a native cryptocurrency and converting it into a token that can operate on another blockchain. This is commonly done to enable interoperability between different blockchain networks.For instance, Bitcoin (BTC) can be wrapped to create Wrapped Bitcoin (WBTC), which is an ERC-20 token on the Ethereum network. This allows Bitcoin holders to utilize their assets within Ethereum’s ecosystem, participating in decentralized finance (DeFi) applications like lending and trading.The wrapping process generally involves locking the original cryptocurrency in a smart contract and issuing the equivalent amount of the wrapped token. This ensures that each wrapped token is backed by the actual asset, maintaining value and security.Wrapping enhances liquidity and access to various platforms, allowing users to leverage their assets beyond their native chain’s limitations. It plays a crucial role in bridging different blockchain environments, promoting a more interconnected landscape.