A blockchain like Bitcoin or Ethereum has a native token, for example in the case of Ethereeum its native token is Ether. For Bitcoin its native token is bitcoin.
#easydefi
This is a very important concept to understand ,to conduct decentralized finance safely. It isn't overly complicated, but it is essential, and failure to understand it, will result in the loss of funds and great sorrow.
#easydefi
Threadcast: Native and non-native tokens
Another way to say this is that a native token is minted or created on that blockchain. Ether is minted on the blockchain Ethereum, so it is a native token of the Ethereum blockchain.
#easydefi
Threadcast: Native and non-native tokens
However Bitcoin is not minted or created on the Ethereum blockchain. Therefore Bitcoin is NOTa native token of the Ethereum blockchain.
#easydefi
Threadcast: Native and non-native tokens
However the token Ethereum token called Wrapped Bitcoin or WBTC is a token minted minted on the Ethereum blockchain, so it is a native token. Regular Bitcoin blockchain minted BTC is not.
#easydefi
Threadcast: Native and non-native tokens
Why is this important to know?
Why should you care?
In general, or 99% of the time, If you send non-native tokens to another blockchain, they are lost forever.
Threadcast: Native and non-native tokens
For example: if you send Hive to an ethereum blockchain address, the Hive doesn't show as arriving in your Ethereum wallet like Metamask and is lost for ever.
#easydefi
This is why decentralized finance is so heavily dependent on wrapping.
Wrapping is a non-intuitive way of saying you using a native token to represent the value of a non-native token on another blockchain.
#easydefi
For example you wrap your Bitcoin BTC and now the value of your Bitcoin is represented on another blockchain; ethereum, by the token minted on ethereum called Wrapped Bitcoin called WBTC. BTC is non-native, but WBTC is native.
#easydefi
This is why decentralized finance is so heavily dependent on wrapping.
Wrapping is a non-intuitive way of saying you using a native token WBTC to represent the value of a non-native BTC token on another blockchain.
#easydefi
This is a very important concept to understand ,to conduct decentralized finance safely. It isn't overly complicated, but it is essential, and failure to understand it, will result in the loss of funds and great sorrow.
#easydefi
nice summary and helpful info for the non technical ones
Thanks
Threadcast: Native and non-native tokens
Another way to say this is that a native token is minted or created on that blockchain. Ether is minted on the blockchain Ethereum, so it is a native token of the Ethereum blockchain.
#easydefi
Threadcast: Native and non-native tokens
However Bitcoin is not minted or created on the Ethereum blockchain. Therefore Bitcoin is NOTa native token of the Ethereum blockchain.
#easydefi
Threadcast: Native and non-native tokens
However the token Ethereum token called Wrapped Bitcoin or WBTC is a token minted minted on the Ethereum blockchain, so it is a native token. Regular Bitcoin blockchain minted BTC is not.
#easydefi
Threadcast: Native and non-native tokens
Why is this important to know?
Why should you care?
In general, or 99% of the time, If you send non-native tokens to another blockchain, they are lost forever.
#easydefi
Threadcast: Native and non-native tokens
For example: if you send Hive to an ethereum blockchain address, the Hive doesn't show as arriving in your Ethereum wallet like Metamask and is lost for ever.
#easydefi
This is why decentralized finance is so heavily dependent on wrapping.
Wrapping is a non-intuitive way of saying you using a native token to represent the value of a non-native token on another blockchain.
#easydefi
For example you wrap your Bitcoin BTC and now the value of your Bitcoin is represented on another blockchain; ethereum, by the token minted on ethereum called Wrapped Bitcoin called WBTC. BTC is non-native, but WBTC is native.
#easydefi
This is why decentralized finance is so heavily dependent on wrapping.
Wrapping is a non-intuitive way of saying you using a native token WBTC to represent the value of a non-native BTC token on another blockchain.
#easydefi
good point