The Base blockchain evolved through Coinbase, a layer 2 of Ethereum, will soon bring its evolved and deployed native edition of wrapped bitcoin, called cbBTC. With this, this token goes hand in hand with the popular WBTC (Wrapped Bitcoin). ) issued through the well-known custody service provider BitGo.
News of the cbBTC issuance emerged from Coinbase’s camp, albeit with a very cryptic X post from Coinbase’s official account. It simply said “cbBTC. ” The publicly traded exchange’s account followed the post with a comment that read, “Coming soon. “The Base blockchain account responded with a reaction that read “Based. “This led users to the asset coming to the Layer 2 network.
Shortly after, Coinbase’s Jesse Polak, who created the base chain and oversees its operations, presented some long-awaited clarity. He mentioned: “To say it out loud: I love Bitcoin, I’m very grateful for its role in launching cryptocurrencies. And we’re going to build a Bitcoin economy on @base. “
The move comes after the WBTC symbol in some crypto circles took a hit. BitGo, which used to offer it alone, has now partnered with BiT Global, a registered custodian operating in Hong Kong. This custodian is partly owned by Tron’s founder, Justin Sun. and the Tron ecosystem.
While this joint venture will continue to use the same multisig wallets to buy Bitcoin to factor WBTC and will not make any primary adjustments in the issuance process, some are not happy. Users of MakerDAO’s forums have called for removing the asset’s ability to secure strong loans. on the loan protocol. Those discussions escalated to a vote on banning the use of the WBTC on the platform scheduled for next month.
However, the emotions towards the WBTC remain the same elsewhere. On-chain knowledge shows that its use remains the same and that users have not abandoned their position. Essentially, wrapped tokens allow users to give a contribution of assets committed on one chain to others. For example, Bitcoin is historically incompatible with other chains, restricting its use to the Bitcoin network. However, encapsulation allows users to use it on protocols like Ethereum and use it on DeFi protocols.
BitGo enables this by storing users’ bitcoins and creating a packaged edition of the coins on-chain. When users need to retrieve their bitcoins from BitGo, it burns the tokens on the other chain and releases the bitcoins stored in users’ wallets on the Bitcoin blockchain.
Sun spoke with » He added: “My private participation in WBTC is completely strategic. I do not have the keys to the WBTC reserves and cannot move any BTC reserves.