What is the difference between wrapped BTC and normal BTC?

The underlying blockchain difference significantly impacts the technology underlying each asset. Bitcoin's blockchain is optimized for security, decentralization, and immutability, while Ethereum's blockchain emphasizes smart contract functionality and programmability.

Transaction speed is another area where the two diverge. Bitcoin's blockchain can process a limited number of transactions per second, leading to congestion and higher fees during peak usage times. In comparison, Ethereum's blockchain, though still facing scalability challenges, has a higher throughput, making WBTC transactions potentially faster and cheaper in certain scenarios.

Network fees, also known as gas fees on Ethereum, are another factor influenced by the blockchain difference. As Bitcoin transactions compete for limited space in blocks, fees can rise significantly during times of high demand. Ethereum's gas fees fluctuate based on network congestion and can be more dynamic, but they may still be more predictable and manageable in some cases compared to Bitcoin's fees.

When comparing Bitcoin and Wrapped Bitcoin, a crucial distinction lies in the foundational blockchain technology they employ. Bitcoin, the pioneer of cryptocurrencies, operates solely on its proprietary blockchain, a decentralized ledger that records all transactions.

In contrast, Wrapped Bitcoin (WBTC) exists as an ERC-20 token within the Ethereum blockchain ecosystem. This tokenized version of Bitcoin allows for seamless integration and interoperability within the Ethereum network, enabling users to access DeFi services and decentralized applications (DApps) that might not directly support Bitcoin.