Wrapped Tokens: The Bridge Between Blockchains

When working with Wrapped Tokens, a digital asset that represents another cryptocurrency on a different blockchain, making the original asset usable where it otherwise isn’t supported. Also known as wrapped assets, they let users move value across ecosystems without selling and rebuying. The most common format follows the ERC-20, Ethereum’s programmable token standard that defines how tokens can be transferred and interacted with specification, because ERC‑20 contracts are easy to audit and integrate. To turn a Bitcoin into an ERC‑20 token, a Cross‑Chain Bridge, a set of smart contracts and validators that lock the original asset on its native chain and mint a corresponding wrapped version on the target chain locks the BTC on the Bitcoin network and issues WBTC on Ethereum. This simple relationship – *wrapped tokens encompass cross‑chain bridges* – fuels the whole ecosystem of interoperable finance.