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The Potential Wrapped Bitcoin Has On Ethereum & Bitcoin

Wrapped Bitcoin is a new innovative token which aims to bridge the gap between both the Ethereum and Bitcoin blockchains. Working as a joint venture between BitGo, Kyber Network and Republic Protocol Wrapped Bitcoin was launched on the 26th October 2018. The new Bitcoin ERC20 token will bridge the worlds of the two leading crypto assets in the idea that it will basically allow Bitcoin to be traded against other assets on Ethereum-based decentralised exchanges, bringing liquidity from Bitcoin to Ethereum and allow for a whole new suite of Ethereum enabled Bitcoin applications. As stated by CryptoGlobe: “In a significant departure from other kinds of asset-backed tokens such as USD stablecoins – which have come under fire for their perceived lack of transparency – the project aims to ensure transparency by ‘minting’ and burning the tokens in a way which is publicly verifiable on both the Bitcoin and Ethereum blockchains.” In a recent interview the CEO and co-founder of Kyber Network, Loi Luu discussed the project its origins and what its potential impact on the crypto economy is. One of the first questions Luu was asked was if Kyber and Republic are sourcing all the initial Bitcoin liquidity for launch and if he has an estimate for the amount of Wrapped Bitcoin issued at launch: “We will for sure provide initial liquidity, but we expect other merchants or partners will also do the same. I can’t speak for others, but Kyber side will provide at least 1 Million USD worth of Bitcoin.” After being asked where the highest demand for Wrapped Bitcoin will be after the launch Loi Luu said: “Decentralized exchanges and other financial protocols like Dharma, Compound finance and index funds. Would you like more exchanges and custodians to join? For example, Coinbase as they have a DEX product, bitcoin liquidity and a custody solution of sorts, would they be a partner or do you see them as a potential competitor?” Last but not least, Luu was asked if he thinks this will increase the value proposition for Ethereum and Bitcoin: “Absolutely, WBTC helps achieve the best of both worlds: bring the most popular cryptocurrency (in terms of market cap and trade volume) to Ethereum and allow it to be programmable with expressive smart contracts on Ethereum. “ What are your thoughts? Let us know what you think down below in the comments! googletag.cmd.push(function() { googletag.display('div-gpt-ad-1538128067916-0'); }); The post The Potential Wrapped Bitcoin Has On Ethereum & Bitcoin appeared first on Crypto Daily™.
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Kyber Network Launches Wrapped Bitcoin – WBTC

Nothing spells Bitcoin like custodians holding BTC reserves to back the circulation of a token that represents Bitcoin prices on the Ethereum network. Kyber Network is turning what is supposed to be a P2P form of electronic cash into a derivative on a blockchain that requires an inflationary digital asset to operate. Aside from the philosophical, there are many fundamental flaws with this idea. Here are some of them. BTC – WBTC Arbitrage Let’s start by pointing out the obvious: The interaction between BTC and WBTC will offer opportunities for arbitrage, which not everyone will be able to take advantage of. There is absolutely no way to keep BTC prices and WBTC prices at the same level, for several reasons: The assets will not be used for the same purpose – WBTC is supposed to be used as a proxy to trade BTC on decentralized exchanges and to use on smart contracts – which will yield varying levels of demand. Like we saw with Tether – USDT – characteristics from assets that back other assets don’t necessarily translate, creating price differences. Anyone can wait and see how WBTC will work and then copy every single aspect of it to launch a different version of WBTC. With competition, WBTC prices might dip even lower, bringing about even more opportunities for arbitrage. Transaction congestion on Ethereum could create temporary price gaps between BTC and WBTC. It will take time for users to redeem their BTC when they “cash in” on their WBTC, which will create temporary price differences. With Bitcoin well into the thousands, small percentage changes on those prices can mean large profits for those who have the right information. Can you Trust Kyber Network and the DAO it is Creating to Launch WBTC? This last point sheds light on the net potential weakness that this WBTC concept has. Kyber Network is creating a DAO to manage the supply of WBTC, the exchange of WBTC for BTC and reserves. Everyone will be able to verify this via both blockchains. So far, so good right? Well, that is if you already forgot what happened with the infamous DAO. It all comes down to the code and the implementation. Even if the idea sounds like it can work in theory, the quality of both key variables remains to be seen. Bitcoin on Ethereum, Who Would Have Thought? Going back to that infamous DAO, there are characteristics of Ethereum that many Bitcoin holders would like to avoid like the plague, and for a good reason. Ethereum is de facto not immutable. If the network could take the DAO debacle out through a fork and bail people out, it can do it again. Therefore, an asset such as the WBTC will be worth less than BTC to those who appreciate immutability. Ethereum’s Inherent Weakness Then there is the issue of the Ethereum network itself. It is a more complex network insofar as its goals go, when compared to Bitcoin. Therefore, Ethereum will require much more intervention and tweaking going forward. Knowing that smart contracts are likely to run better with an inflationary medium of exchange for example, Ethereum is slated to transition into PoS, which will be inflationary. There are no true PoS blockchain networks right now, so the transition will inherently put all the assets on the Ethereum blockchain at risk. BTC doesn’t face those risks, so there is no reason to acquire a riskier asset backed by Bitcoin when you can just acquire Bitcoin. More Points of Failure Potential Ethereum failures or glitches could affect WBTC at other levels. The logic behind this is that there will be more moving parts when transactions on two chains have to be somehow synchronized. WBTC will bring about more points of failure, so people interested in this asset should weigh the risks they will incur and see if the advantages of using it outweigh them. A simple look at the concept reveals that there are just too many flaws to take WBTC at face value. The post Kyber Network Launches Wrapped Bitcoin – WBTC appeared first on Bitcoin Chaser.
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Bitcoin on Ethereum: Goldman Sachs-backed Crypto Startup ‘BitGo’ Unveils Wrapped Bitcoin (WBTC)

Goldman Sachs-backed Bitcoin security firm, BitGo recently unveiled Wrapped Bitcoin (WBTC) – a Bitcoin ERC20 token. The new token is a collaboration between the firm, Republic Protocol, and Kyber Network. Wrapped Bitcoin (WBTC) According to a press release on Business Wire, published on Friday (October 26, 2018), BitGo along with other partners is launching WBTC – a fully-backed ERC20 Bitcoin token. Each WBTC token is backed by 1 BTC. WBTC will enable users to trade BTC on decentralized exchanges, as well as facilitating various transactions on the Ethereum Network. Also, the administration of the entire WBTC ecosystem will be via a Decentralized Autonomous Organization (DAO). Commenting on the initiative, Kyber Network CEO, Loi Luu said: This initiative will be bringing together the liquidity of Bitcoin and the extensive smart contract developer ecosystem of Ethereum. Applications on Ethereum such as decentralized exchanges and financial protocols will all be able to use Bitcoin seamlessly, creating bitcoin trading pairs which have been impossible until now. At the same time, the usage of Bitcoin will be expanded by having more decentralized use cases, such as exchange, loans, token payments. According to Benedict Chan, the BitGo CTO, the company will provide custodial service for the WBTC tokens. In a blog post published on the BitGo website also on Friday, Chan said: Every Bitcoin will be accounted for on a dashboard displaying addresses and balances, and users will be able to verify on the blockchain each Bitcoin that is held in custody. This can be done by comparing the exact number of Bitcoin stored with the total supply of WBTC in circulation via a blockchain explorer like Etherscan. January 2019 Launch To get things started, both Kyber Network and Republic Protocol will “pre-mint” WBTC tokens. The pair’s full BTC purse will back these pre-minted tokens. This move is to provide initial liquidity for WBTC. It is also to ensure that the new tokens are available for atomic swap. According to the CEO of Republic Protocol, Taiyang Zhang, atomic swaps increases the possibility of greater adoption of WBTC tokens since traders can easily transfer between BTC and WBTC and vice versa. Presently, the plan is to have the token launch happen at the start of the year. For BitGo, the news is yet another massive development for the Bitcoin security outfit. Recently, it received a $15 million investment from Galaxy Digital and Goldman Sachs. Will Wrapped Bitcoin (WBTC) deliver on its promise of BTC liquidity and smart contract capability of the Ethereum network? Let us know your thoughts in the comment section below. Image courtesy of BitGo and ShutterStock The post Bitcoin on Ethereum: Goldman Sachs-backed Crypto Startup ‘BitGo’ Unveils Wrapped Bitcoin (WBTC) appeared first on Live Bitcoin News.
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BitGo and Kyber Create BTC-backed Ethereum-Based Wrapped Bitcoin Tokens (WBTC)

A new token could soon be launched on the Ethereum (ETH) network. This information could not sound very exciting since there are many tokens being launched on Ethereum every single week. However, this token will be backed 1:1 by Bitcoin and will be launched in January. In order to make this possible, the companies Kyber Network, Republic Protocol, and BitGo have been working together in order to develop this asset. According to some reports, the virtual currency would be embraced by several ethereum-based projects once it ’s released to the market. Some of the projects that are participating as ‘launch members’ include MakerDAO, Dharma, Airswap, Radar Relay, Hydro Protocol and many other companies in the cryptocurrency sphere. The main intention is to increase the use case of bitcoin and act as a peer-to-peer payment tool. The new token will be known as WBTC or ‘wrapped bitcoin.’ It will facilitate the use of the most popular virtual currency for decentralized applications that run on ETH. On the mater, Benedict Chan, CTO of BitGo, commented: “It’s very similar in some ways to how people created banknotes that represented a pound of gold. A pound of gold was heavier and it took longer to trade. You could use a note which represented a pound of gold and it was well accepted.” BitGo will be the company offering custodian services to WBCT. It will be holding a reserve of Bitcoins that will be backing all the minted WBTC tokens that are in circulation using the Ethereum network. Additionally, users will be able to know at all times that the reserves are real since it is possible to verify that information using the two blockchains. There will be registered merchants that will be disseminating and redeeming WBTC tokens to users. Merchants on the Kyber Network and Republic Protocol will be completing transfers of WBTC for bitcoin and vice versa performing atomic swaps. In the long run, the intention is to onboard new custodians and merchants that will be distributing these coins. At the same time, Loi Luu, CEO of Kyber Network said that when WBTC will be launched, there will be decentralized autonomous organization (DAO) in charge of overseeing how the project evolves. Luu explained that as there will be a DAO backing this project, there are many other companies supporting the initiative. Although this sounds very positive for the future, the list of companies that will be part of the DAO is not specified. Luu has also explained that decentralized leadership will be an important feature of this project.
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Wrapped Bitcoin brings powers of Bitcoin and ERC20 tokens together

The joint effort by Kyber Network (KNC), Republic Protocol (REN) and BitGO seems to be working well as the teams together announced the launch WBTC – or Wrapped Bitcoin. WBTC is a proposed ERC-20 token which is backed up by ‘physical’ reserves of BTC and will be expected to remain tethered to Bitcoin’s value.   Wrapped Bitcoin: the power of Bitcoin with the flexibility of an ERC20 token WBTC is a community-focused initiative and is the culmination of a long-standing joint effort relationship between BitGo, Kyber Network, and Republic Protocol. WBTC (Wrapped Bitcoin) will launch as a fully backed Bitcoin ERC20 token on Ethereum in January 2019. The initiative will bridge Bitcoin liquidity and the decentralized ecosystem on Ethereum, enhancing all decentralized applications. WBTC will allow the Ethereum network to be leveraged to enable new applications and use cases for Bitcoin. Prominent decentralized exchanges and financial projects, including MakerDAO, Dharma, Airswap, IDEX, Compound, DDEX, Hydro Protocol, Set Protocol, and Prycto have all committed to supporting the adoption of WBTC and will participate as launch members. Loi Luu, Co-founder, and CEO of Kyber Network “This initiative will be bringing together the liquidity of Bitcoin and the extensive smart contract developer ecosystem of Ethereum.” “Applications on Ethereum such as decentralized exchanges and financial protocols will all be able to use Bitcoin seamlessly, creating bitcoin trading pairs which have been impossible until now. At the same time, the usage of Bitcoin will be expanded by having more decentralized use cases, such as exchange, loans, token payments.” WBTC will allow any project to include WBTC in their platform without restrictions, while users can easily purchase WBTC tokens on any supported swap service or exchange. The effort will be community driven from launch, with governance dictated through a Decentralized Autonomous Organization (DAO) comprised of reputable projects in the cryptocurrency space. DAO members will publicly audit the WBTC tokens to make sure that the balances in the custodian wallet and the smart contract match. In addition, they will vote and decide on any proposed improvements. The addition of any new minters, custodians, and DAO members as well as the removal of the existing members will happen via a transparent voting process in the DAO. At launch, Kyber and Republic Protocol will pre-mint WBTC tokens from their own Bitcoin inventory to provide initial liquidity and make WBTC available for atomic swaps with users. Taiyang Zhang, CEO Republic Protocol was quoted saying “The addition of atomic swap technology to the WBTC initiative will allow users to deposit and withdraw BTC/WBTC securely and with confidence, which will assist in enabling WBTC adoption to reach the masses.” This initiative, including the initial minters and DAO, is expected to go live in January 2019. In advance of the launch, the specifications will be made known on GitHub/Gitter for all members of the cryptocurrency community to discuss and propose improvements on both the token and the governance model. The project seems promising as the strength of bitcoin and ERC20 token could bring superlative result and add more power to cryptocurrencies. It would be exciting to see how the product phases out after it is launched. Will Wrapped Bitcoin deliver in line with how it is anticipated to be? DO let us know your views on the same   The post Wrapped Bitcoin brings powers of Bitcoin and ERC20 tokens together appeared first on Coingape.
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Why Do We Need to Wrap Bitcoin?

BitGo, Kyber Network, MakerDAO, IDEX and many other crypto companies partnered to create a Bitcoin-backed Ethereum token, Wrapped Bitcoin. This token will represent BTC, 1 token equal to 1 BTC stored in the custody of BitGo. It could be used to trade BTC on DEXes, the whole administration will be via DAO, similar to Maker system

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BAT Outperforms Bitcoin, XRP On New Brave Browser “Rewards” Feature

Brave Browser Announces BAT “Rewards” Feature On Tuesday, Brave Browser, a crypto-friendly internet application headed by the founder of Mozilla Firefox, Brendan Eich, made a surprising announcement, seemingly aiming to start of 2019 with a proverbial bang. Via a company release, conveyed through its in-house blog, the Brave and Basic Attention Token (BAT) team, which consists of Eich, coupled with an array of fintech, Silicon Valley, and crypto veterans, revealed that it would be previewing “opt-in ads in [the] desktop browser developer channel.” While this feature sounds nebulous, there’s more to this integration than meets the eye. In fact, as broken down in a PC Magazine feature article, this new advertising model will allow common Joes and Jills to earn crypto, in the form of BAT, and potentially other rewards in the feature. This new offering, dubbed Brave Rewards, will siphon 70% of earned ad revenue to users who agree to view advertisements. The remaining 30% will be paid to Brave’s war chest — a likely controversial play, but one necessary for the blockchain project’s long-term survival. Rewards will be available via Brave’s developer/test browser edition. It wasn’t exactly divulged when the innovative feature would hit the publics’ desktops, but the following GIF is how the feature will work: Looking outwards, the Brave team revealed that they expect opted-in users to earn upwards of $60 to $70 a year in the near future, with their preliminary projections predicting that $224 a year could be earned by 2020 through Brave’s in-house ecosystem. While this sounds great — an effective free $224/year for viewing ads — like all things too good to be true, there’s a catch. At the time of writing, Brave has announced support for BAT token withdrawal, as the company wants Rewards’ users to reward their favorite content creators, whether it be large new portals or Youtubers. After this feature goes live successfully, Brave intends to activate “publisher-integrated ads,” which will allow content creators to feature “private ads” on content creators’ pages through the startup’s systems. The company subsequently explained its Brave Ads offering and its applications/benefits from a top-down perspective, writing: With Brave Ads, we are reforming an online advertising system which has become invasive and unusable. Users have turned to ad blockers to reclaim their privacy from ads that track them and sometimes even infect them, and publishers are finding it increasingly difficult to earn ad revenue to sustain quality content with intermediaries that collect huge fees. It is important to reiterate that at this time, this newfangled feature is technically in its beta phase. Due to this positive news, the popular altcoin, which recently gained the support of industry powerhouse Coinbase, has posted a respectable price gain. At the time of writing, BAT is currently valued at $0.125 apiece, posting a 3% in the past 24 hours. The crypto, currently the 36th in this market’s standings, is currently outperforming Bitcoin (BTC) by 2.7%, and Ethereum (ETH) by 2.4%. Crypto Lulls: Bitcoin, Ethereum, XRP Post Barely Any Movement In the same vein of cryptocurrency prices, the broader market has posted close-to-zero movement in the past 24 hours. Per data from Coin Price Watch, BTC has found itself at $3,645 — a mere 0.58% gain over the past day. Other leading crypto assets have also posted slight gains, but have still underperformed BAT. XRP, the go-to asset for fintech upstart Ripple, is up 1.27%, as it sits just shy of the $0.33 price level at $0.3296. ETH, which recently tumbled due to the delayed Constantinople fork, has found itself up by 2%, regaining a portion of the losses incurred yesterday. While the market is trending slightly positive, some analysts expect that BTC is ready to dive. Speaking to MarketWatch, Jani Ziedens of Cracked Market claimed that BTC, if truly oversold, should be posting monumental gains right now, rather than finding itself in an extended lull. So, Ziedens added that this “lethargic base” indicates that demand is limited, “incredibly weak” even, and as such, lower crypto bottoms may be inbound. BAT Title Image Courtesy of Descryptive.com via Flickr The post BAT Outperforms Bitcoin, XRP On New Brave Browser “Rewards” Feature appeared first on Ethereum World News.
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Cryptopia Hacker Moves Stolen Crypto to Binance; Community Alerts CZ and Funds Are Frozen

It is clear that hackers gave themselves a place to stay in the cryptocurrency industry, which was only made more evident by a recent security breach that happened over the last few days. Cryptopia, a leading exchange in New Zealand, announced a breach that ended in a major theft on January 14th. However, unlike the unfortunate tale that many other exchanges succumb to, that is not the end of the story. The official statement notes that Cryptopia has placed itself into a maintenance mode, helping them to protect their accounts until the regulatory authorities of New Zealand provide other details. Both the High Tech Crimes Unit and the local police are pursuing investigative efforts, though they have commented that “a significant value of cryptocurrency may be involved.” At this point, the actual amount has not been released, and no substantial details have been provided. Still, that has not stopped local news portal Radionz from reporting that the loss is close to $3.6 million. A Twitter user, ShaftedTangu, seems to know where these digital assets are going. On the posts, the user said, Hey @cz_binance Binance has stolen tokens from Topia hitting it sir. Can you lock it down? https://t.co/0XllsBejUV — I Dream Of Alts (@ShaftedTangu) January 16, 2019 Through a string of additional tweets, the user continued to track the funds, as he mentioned wallet address 0x9007a0421145b06a0345d55a8c0f0327f62a2224. In another tweet, he claimed, “Currently the 0x900 wallet contains around $10 mil USD of tokens, large amounts are $PRL $2mil, $CENNZ $1.168 mil, $Denacoin $2.73 mil, $MSP $0.99 mil” Luckily, just under four hours after the original tweet, CZ Binance replied. The reply said, Just checked, we were able to freeze some of the funds. I don't understand why the hackers keep sending to Binance. Social media will be pretty fast to report it, and we will freeze it. It's a high risk maneuver for them. https://t.co/i0PeahLzic — CZ Binance (@cz_binance) January 16, 2019 With such a nonchalant type of reply, it is quite a victory for Cryptopia and Binance that the funds could be frozen at all. However, the victory has not been won yet, considering there is no indication of exactly who performed the hack in the first place. Cryptopia has remained silent, though they posted to their own Twitter profile, saying, “We cannot comment as this matter is now in the hands of the appropriate authorities. We will update you as soon as we can.” As a result of these issues, Zhao posted that users should keep their holdings on exchanges, rather than a hardware wallet. However, his post caused an onslaught of negative replies, with some saying that his post implied that self-storage is substantially riskier than storing on a seemingly “reputable” exchange. Zhao later retracted, saying that he was not advising investors to store funds on exchanges. In the first half of 2018 last year, there was over $731 million lost in thefts involving exchange hacks. However, none have reached the severity experienced by the 2014 Mt. Gox hack.
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Binance Freezes ‘Some of the Funds’ Stolen in Cryptopia Hack

Some of the stolen cryptocurrency from yesterday’s Cryptopia hack has been sent to Binance, which has confirmed already freezing some of the funds.  Binance Freezing Funds Stolen from Cryptopia Twitter account @ShaftedTangu has alleged that some funds stolen as a result of Cryptopia’s hack have been siphoned through Binance. The amounts sent to Binance in question include roughly $7,500 in Metal (MTL) 00, $6,750 in KyberNetwork coin (KNC) 00, $7,181 OmiseGO tokens (OMG) 00, and $8,724 in EnjinCoin (ENJ) 00. All of it totals around $30,000. Changpeng Zhao, CEO at Binance – the world’s largest cryptocurrency exchange by means of traded volumes, has confirmed the allegations, reassuring that they’ve already frozen some of the funds. Zhao commented: Just checked, we were able to freeze some of the funds. I don’t understand why the hackers keep sending to Binance. Social media will be pretty fast to report it, and we will freeze it. It’s a high-risk maneuver for them. Just checked, we were able to freeze some of the funds. I don't understand why the hackers keep sending to Binance. Social media will be pretty fast to report it, and we will freeze it. It's a high risk maneuver for them. https://t.co/i0PeahLzic — CZ Binance (@cz_binance) January 16, 2019 Bitcoinist reported yesterday that Cryptopia’s security has been breached, resulting in ‘significant losses’. Police in New Zealand also confirmed. Binance Caught in the Fire Zhao’s tweet caused a reaction in crypto Twitter’s community as one user (@Crypto_Bitlord) expressed his bewilderment that Zhao referred to “social media” as a means of reporting rather than Binance’s own surveillance systems. I’m genuinely shocked stolen funds from @Cryptopia_NZ have easily passed through @binance UNDETECTED until social media flagged them. This raises some big questions. How is that possible with modern blockchain analysis? — Sir Bitlord (@Crypto_Bitlord) January 16, 2019 On the matter, Binance’s CEO said: It’s quite easy to generate a brand new address. We (and no one) recognize every transaction out there. We already have very in-depth and detailed blockchain analysis. Yet, the question remains – if a regular Twitter user has been able to detect the transaction in question, how, and more importantly – why did Binance miss it? Perhaps the better question, as posed by @Crypto_Bitlord is: So you are saying criminals can steal funds and just create a brand new address to send to before binance? In the meantime, Binance announced today the launch of their Binance Jersey fiat exchange. The platform is aimed at traders from Europe and it offers BTC/GBP, ETH/GBP, BTC/EUR, and ETH/EUR trading pairs. What do you think of Binance missing the transactions in question? Don’t hesitate to let us know in the comments below! Images courtesy of Shutterstock The post Binance Freezes ‘Some of the Funds’ Stolen in Cryptopia Hack appeared first on Bitcoinist.com.
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