Does the name W-ETH ring a bell? Just like the name implies, W-ETH means Wrapped ETH (Ether). W-ETH enables users to trade ETH for Ethereum-based ERC20 tokens on decentralized platforms (dApps) such as Radar Relay.
Indeed, decentralized platforms running on Ethereum needs smart contracts to process trades between various users. Furthermore, every user needs to have tokens that meet protocol requirements for trading to be feasible. In a nutshell, when they are in the same format, traders don’t lose their tokens in the course of trading. While the name Wrap may suggest that there is something one needs to wrap, in the real sense, there is nothing to wrap.
What’s There to Wrap Then?
Essentially, Wrap means that you are trading via smart contracts with a token called W-ETH, which is equivalent to Ethereum’s native token, ETH. To restore your plain ETH, you need to “unwrap” it. When you do this, you are trading it back for plain ETH. Interestingly, W-ETH is readily available for any trader ready to give it a try. To access it, visit Radar Relay to use its interface. Upon having W-ETH, you can freely trade with anyone who has an ERC20 token.
What Does the Future Hold for W-ETH?
Looking at what the future holds for W-ETH, it could be amazing. To start with, the team behind W-ETH is taking the right steps to update its codebase. In particular, the aim is to ensure that W-ETH complies with its own ERC20 standard. Also, chances are that other standards could potentially displace ERC20. Keep in mind that there is ERC223 already underway.
Similarly, Radar Relay is a decentralized platform that enables trustless trading by leveraging the capabilities of blockchain technology. So, with Radar Relay, users can trade directly from their wallets, eliminating the need for middlemen.
This exchange relays orders between peers using the Ox Protocol, which is a protocol that enables the movement of tokens between wallets. Unlike other centralized exchanges, Radar Relay doesn’t hold traders’ tokens. In addition to that, users can always access their tokens, like W-ETH, even when the exchange is carrying out routine system maintenance.
Also, the exchange has no escrow or exit strategies. In a bid to create networks of liquidity, Radar Relay links other relayers, thus increasing access to tokens and reducing the high rate of transfers among exchanges.
Relationship: Ethereum, Ether dApp, and ERC20
Ether is the native currency of the Ethereum blockchain. This means that users need Ether to use the Ethereum blockchain. Typically, dApps enable users to interact with the Ethereum blockchain. Nonetheless, when a team develops a dApp off the Ethereum blockchain, it usually implements its own token. So, ERC20 defines how tokens should be transferred and how to keep such transfer records within the Ethereum blockchain.
This article should not be taken as, and is not intended to provide, investment advice. Users are ultimately responsible for the investment decisions he/she/it makes based on this information. It is your responsibility to review, analyze and verify any content/information before relying on them. Trading is a highly risky activity. Do consult your financial adviser before making any decision. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.
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