To Wrap Bitcoin Or Not Wrap Bitcoin
Steven RuppShare
Let's talk #Bitcoin in #crypto.
Not all #Bitcoin is the same.
You've probably seen:
So, whats the difference, what should you consider, and why is this?
First, $BTC, #Bitcoin is the MOST purest form of #Bitcoin.
It IS #Bitcoin.
The reason there is differences is because all other forms are trying to create an "image", a "copy", of Bitcoin on a different #blockchain. Blockchain as in #Ethereum, #Base, #Rootstock, or @Stacks. (ps there is also side systems out there too).
I think it's critical to note, so why do they do this? Well, Bitcoin is first and most sought after. One should ask themselves, why is that? The answer to that is a thread in its own. You have to go the rabbit hole of why Bitcoin, what decentralization is, and why proof of work of mining. This should be the first task of anyone entering #crypto #BTC. Satoshi Nakamoto created this innovation #Blockchain and he did it with decentralization, crypto-proof, and no third party systems or entities.
Other blockchains, DO NOT exhibit the same principles, values, and architecture as the original, most pure, #Bitcoin. Furthermore, they will NEVER be able to re-create this most purest form as they don't have a "time machine". What do I mean by that? Blockchains and how long they run create stronger security with time. It's blocks of data linking to prior blocks of data. That creates a chain and the longer the chain, the more secure. But, also the architecture and network itself plays a big role.
Considering the aforementioned points, I think one must ask then of these "wrapped" or different "flavors" of Bitcoin who aligns MOST CLOSEST to the ORIGINAL principles of Bitcoin? This is critical because these "images" of Bitcoin are running on a different network/different blockchain with DIFFERENT principles.
Consider this.
You walk into a casino to play some blackjack. You go to the cage and hand them your cash (Bitcoin in this example) and they hand you a "chip" that represents that value. Those chips are the other blockchain. So, those chips represent different qualities. They can only be used at certain places. There's also this process of exchange moving from cash to chips and chips to cash. There's also a different custodian that controls the issuance and creation of chips. In short, it goes to the same questions as I posed in my #stablecoin thread: governance, mining mechanisms, etc.
All factors should be investigated and researched before you go parking your Bitcoin into a different blockchain.
So, why do people do this? Bitcoin is a large battleship. It packs a punch. Its powerful. But, its slower and takes a long time to turn when its time to pivot positions. It also is limited in ways it can be customized. Thats fine and its working as intended. We love Bitcoin that way that it is today and personally I wouldnt change a thing as there is tremendous value in the present form.
But, for those that want to do things with their Bitcoin thats why they seek out these other versions for #Defi, #eCommerce, #Daos, #NFTs, #AIs, etc. Also, they may want lower transaction fees and faster speed to transact. They want a programmable world with their #BTC and they want to stay ON CHAIN. They dont want to move their BTC to antiquated systems, processes, where a custodian, or entity is involved, and can smother the inherent principles.
All in all, study and consider all these factors.
Personally, I believe staying on chain is best. I also believe $sBTC with @Stacks possesses the most closely aligned principles to L1 #Bitcoin.
Programmable, secure, and fast.
