Multichain Bridged WBTC (Energi)Price

(WBTC)

Multichain Bridged WBTC (Energi) is a digital token that functions within the Energi blockchain ecosystem. It is a wrapped version of Bitcoin, designed to allow the utility of the original Bitcoin asset to be utilized on the Energi network. This type of token is often referred to as a bridged or wrapped asset because it represents a claim on the underlying asset held on another blockchain. The technical mechanism used to create this token is known as a lock and mint process. This typically involves locking the original Bitcoin in a smart contract or with a bridge provider on the source network. Once the lock is confirmed, an equivalent amount of Multichain Bridged WBTC is minted on the Energi network. This enables users to participate in the Energi decentralized finance (DeFi) ecosystem, including decentralized exchanges like Energiswap and various lending or staking applications, without needing to sell their Bitcoin for other assets. The token was facilitated by the Multichain protocol, formerly known as Anyswap. Multichain was a cross-chain router protocol designed to provide interoperability between various blockchain networks, including Ethereum, Binance Smart Chain, Polygon, and Energi. By using this bridge, the Energi network aimed to increase its liquidity and provide users with more diverse asset options for its internal applications. In mid-2023, the Multichain protocol experienced significant operational challenges and security incidents that affected many of its bridged assets across different networks. These events led to the halting of many bridge services and impacted the infrastructure responsible for maintaining the link between the original assets and their wrapped versions. Despite these technical difficulties at the protocol level, the token remains an identified asset within the Energi block explorer and ecosystem, representing a specific implementation of cross-chain Bitcoin on that network. The project highlights the broader goal of creating a multi-chain environment where assets can move between independent blockchains. However, it also serves as a case study in the reliance of such assets on the security and stability of the underlying bridging provider used to facilitate the transfer. Learn more

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