Wrapped Bitcoin Vault (wBTCV) Launches on Binance Smart Chain to Utilize the Potential of Smart Contracts & DApps

By AIT News Desk On Aug 12, 2021

Bitcoin Vault (BTCV) takes a strategic step by bringing its core values into the fast-growing DeFi space

Bitcoin Vault (BTCV) is expanding its activities into the Decentralized Finances (DeFi) space by launching wrapped Bitcoin Vault (wBTCV) on Binance Smart Chain (BSC). The token will allow BTCV enthusiasts to participate in DeFi activities, one of the most dominant cryptocurrencies trends in recent times.

Binance Smart Chain is one of the major platforms at the forefront of the DeFi movement. There, users can enjoy decentralized applications (DApps) to lend, borrow and stake assets or even earn by locking their tokens in liquidity pools. wBTCV is a BEP-20 token that is pegged to the native BTCV value on a 1:1 ratio. Those who own BTCV can deposit their coins with a custodian, who in turn will issue the same amount in wBTCV tokens that can be used to interact with DApps on BSC.

Why Binance Smart Chain?

Smart contract functionality was first introduced on the Ethereum network. Vitalik Buterin’s platform is still leading the world of DeFi, but with popularity comes a lot of congestion. Binance Smart Chain, however, is second only to Ethereum and continues to grow at a fast pace.

BSC has smart contract functionalities and is compatible with Ethereum Virtual Machine. Due to the compatibility and binance’s dual chain architecture, the interaction between both blockchains is seamless and straightforward. BSC’s BEP-20 token standard is compatible with Ethereum’s ERC-20, so users can enjoy the best of both worlds.

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Compared to Ethereum, Binance Smart Chain comes out on top in two crucial categories: transaction speed and cost. Block confirmation time on BSC takes only about three seconds, and the platform can handle an average of 55 to 60 transactions per second. This gives BSC the capacity to process over 3.5 million transactions on an average day, a much higher number than Ethereum’s 1.1 million transactions.

Network congestion is one of the leading causes of Ethereum’s high gas fees. With Binance Smart Chain, users may pay less than USD 0.01 per transaction. Higher capacity and lower costs made BSC the obvious choice for the Bitcoin Vault developers.

Two-way street

The immediate advantage that the launch of wBTCV has is the access given to the Bitcoin Vault community to the world of DeFi. Those who already own BTCV can use a custodian to get access to wBTCV tokens. The custodian holds the original coin and mints the equivalent of BEP-20 tokens on BSC. This process ensures that no wBTCV is ever created without being backed by actual BTCV. At any moment, the owner of wBTCV can go to a custodian and exchange it back for BTCV.

While only custodians can mint wBTCV, tokens can be easily swapped through decentralized exchanges on BSC. It’s a much faster and cheaper process than exchanging conventional cryptocurrencies. Instead of having to make multiple transfers through an exchange, users can swap tokens with a click.

Additionally, wBTCV acts as an ambassador for Bitcoin Vault in front of a whole new audience. Swapped tokens can also be exchanged for the original cryptocurrency. Therefore, users who eventually acquire wBTCV have the option to “burn” their tokens with a custodian. This allows them to redeem the equivalent in BTCV and enjoy its many functionalities, including increased security and reversible transactions.

“Our focus continues to be on the community. With our users in mind, Binance Smart Chain is the perfect platform for the launch of wBTCV. It presents a vast world of DeFi possibilities with a much lower entry barrier due to fast transactions and smaller fees. We are excited to bring the core values of Bitcoin Vault to BSC and continue to expand the horizon for our supporters”, says Radek Popiel, Chief Communication Officer of Electric Vault, the blockchain development house behind BTCV.