What are Wrapped Cryptocurrencies? Understanding the Basics
Despite blockchain’s immense growth and potential, it needs to enhance the interoperability between them. As Bitcoin can not understand Ethereum's protocol and vice versa, we cannot spend Bitcoin on the Ethereum network. We cannot execute Ethereum's smart contracts on the Bitcoin network. A solution is needed for blockchain ecosystems that differ in terms of scalability, security, programmability, and privacy. This is where wrapped cryptocurrency comes into play. Trading bitcoin on the Ethereum blockchain is now possible because of the concept of wrapped cryptocurrencies.