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Crypto Terms:  Letter W

What is Wrapped Ether (WETH)?

Meaning:
Wrapped Ether (WETH) - the ERC-20 compatible version of Ether.
easy
2 minutes

Let's find out Wrapped Ether (WETH) meaning, definition in crypto, what is Wrapped Ether (WETH), and all other detailed facts.

Wrapped Ether (WETH) is created by transferring Ether to a smart contract. This puts it on hold in exchange for a 1:1 ratio of WETH ERC-20 tokens. This WETH can then be transfered back into the same smart contract to be unwrapped. However, it can also be redeemed at a 1:1 ratio for the original Ether.

Ether (the native currency of Ethereum) was created before the ERC-20 standard or any other standards were established. As a result, Ether is not ERC-20 compatible. Thus, it cannot be exchanged for other ERC-20 tokens in a decentralized manner.

Though rather than implementing two interfaces within the same smart contract, which would add unnecessary complexity, developers came up with the solution of wrapping Ether to upgrade it to the ERC-20 standard. This allows WETH and other ERC-20 tokens to be handled within the same contract.

Wrapping Ether creates a possibility of a direct and frictionless exchange between Ether and ERC-20 tokens. This means that there would be no need to rely on third parties. Besides, it helps to avoid exposing users to extra risks. For example, it would help to avoid unexpected transaction errors that could appear due to complicated implementations.

Many Ethereum-based decentralized apps (dApps) use WETH instead of Ether. They do that to enable direct and decentralized peer-to-peer trading between Ether in a wrapped form and ERC-20 tokens that follow the same technical standard.

smart contracts<\/strong><\/a> written in a variety of languages. This VM is quite similar to the current <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-ethereum-virtual-machine-evm/">Ethereum Virtual Machine (EVM)<\/strong><\/a>, although it has a few noticeable improvements. These improvements include:<\/p>\n<ul>\n<li>The Qtum VM can <strong>read contracts in any programming language<\/strong> that supports a <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Just-in-time_compilation/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>JIT compiler<\/strong><\/a>, including <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-c-plus-plus/">C++, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-java/">Java, <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Python_(programming_language)/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong><strong>Python<\/strong><\/strong><\/a>, and other popular languages widely used in application development (EVM only reads <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-solidity/">Solidity language).<\/li>\n<li>The Qtum has implemented two new pricing models &ndash; fixed-fee per transaction and charge per transaction, in addition to supporting the standard gas model <em>(when users pay for each completed operation in a smart contract)<\/em> on <strong>Ethereum<\/strong>.<\/li>\n<li>The Qtum VM supports x86 registers and memory operations through a unified 16-bit instruction encoding approach that drastically reduces gas costs in common scenarios. This allows developers to do more operations per transaction on the Qtum blockchain, increasing its <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-throughput/">throughput./n/n

What Is Qtum?<\/h3>\n<p>Qtum is an open-source blockchain project that intends to combine <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin's stability with <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum's flexibility. It was <strong>created in<\/strong> 2016 by the Singapore-based Qtum Foundation, under the leadership of Patrick Dai, Neil Mahi, and Jordan Earls. Its <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-mainnet/">mainnet, on the other hand, <strong>was launched in 2017<\/strong>.<\/p>\n<p>Qtum protocol is a hybrid of Bitcoin Core, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-stake-pos/">Proof-of-Stake (PoS) consensus<\/strong><\/a>, and the EVM. It <strong>enables the execution of smart contracts using a PoS consensus mechanism<\/strong>. This helps save electricity and decreases the risk of centralization compared to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-proof-of-work-pow/">Proof-of-Work (PoW) consensus<\/strong><\/a>.<\/p>\n<p>Moreover, Qtum uses a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-decentralized-governance/">Decentralized Governance<\/strong><\/a> Protocol (DGP) to ensure that the <strong>blockchain continues to function even if a few nodes fail<\/strong>. DGP enables the modification of certain blockchain characteristics such as block size, gas price, and block interval without the requirement for a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-hard-fork-blockchain/">hard fork<\/strong><\/strong><\/a>. It uses an <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-unspent-transaction-output-utxo/">unspent transaction output (UTXO)<\/strong><\/a> model for faster transaction processing, but it can also handle smart contracts in the same way as Ethereum does.<\/p>\n<p>The DGP in Qtum gives node operators particular choice privileges when it comes to updates like <strong>hard forks<\/strong>. Before modifications are applied to the blockchain, node operators must establish a consensus. This keeps the network from being destabilized by bugs or hacks, and it gives users explicit standards for keeping track of changes.<\/p>\n<p>Although there are other crypto projects seeking to achieve the same aims as Qtum, it is worth mentioning that <strong>Bitcoin's UTXO mechanism is what distinguishes it from them<\/strong>. Besides, Qtum is a platform that aims to create smart contracts and <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-are-decentralized-applications-dapps/">decentralized applications (dApps)<\/strong><\/a> that could be deployed in enterprise settings.<\/p>","definition":"x86 Virtual Machine \u2013 a machine created by Qtum for executing smart contracts in various programming languages.","status":"published","meta_title":"What is x86 Virtual Machine (Qtum)? Definition & Meaning | Crypto Wiki","meta_description":"x86 Virtual Machine (Qtum) meaning: x86 Virtual Machine (Qtum) - x86 Virtual Machine \u2013 a machine created by Qtum for executing smart contracts in various programming languages.","meta_keywords":null}" :prev-section="{"id":852,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Winding_Up","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-11-04T07:57:42.000000Z","slug":"what-does-winding-up-mean","title":"What does Winding Up mean?","section":"W","keyword":"Winding Up","content":"<p>The term <strong>Winding Up<\/strong> is used to describe <strong>the process of searching for the best yield by wrapping a cryptocurrency through different projects<\/strong>. It&rsquo;s used within the crypto sector, in regards to <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-defi/">decentralized finance (DeFi)<\/strong><\/a> platforms.&nbsp;<\/p>\n<p>In order to understand this term well, you must know the definition of wrapped tokens. While <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum originated the wrapped tokens, there have been many alternatives emerging such as the wrapped Bitcoin (wBTC).<\/p>\n<p>A wrapped token is a type of token that represents a cryptocurrency that&rsquo;s native to another blockchain. In essence, it is a token that has been pegged to the value of another cryptocurrency. When it comes to DeFi platforms, wrapped tokens offer interoperability.<\/p>\n<p>In order to receive the highest profit, token holders must go through certain processes.&nbsp;<\/p>\n<p>Let&rsquo;s take the most popular cryptocurrency, <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin as an example. Let&rsquo;s say you hold some wrapped Bitcoin and would like to receive some Interest Bearing Bitcoin (ibBTC). In this case, you would have to deposit your wrapped BTC on a specific DEX in order to receive an LP token. The latter will allow you to mint ibBTC.<\/p>","definition":"When someone says they\u2019re Winding Up, it means that they\u2019re wrapping crypto tokens for the purpose of finding the best yield.","status":"published","meta_title":"What does Winding Up mean? Definition & Meaning | Crypto Wiki","meta_description":"Winding Up meaning: Winding Up - When someone says they\u2019re Winding Up, it means that they\u2019re wrapping crypto tokens for the purpose of finding the best yield.","meta_keywords":null}" :model="{"id":1020,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Ethereum","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:01.000000Z","updated_at":"2023-11-21T13:45:14.000000Z","slug":"what-is-wrapped-ether-weth","title":"What is Wrapped Ether (WETH)?","section":"W","keyword":"Wrapped Ether (WETH)","content":"<p>Wrapped Ether (WETH) is created by transferring Ether to a smart contract. This <strong>puts it on hold in exchange for a 1:1 ratio of WETH ERC-20 tokens.<\/strong> This WETH can then be transfered back into the same smart contract to be unwrapped. However, it can also be redeemed at a 1:1 ratio for the original Ether.<\/p>\n<p><a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-ether/">Ether (the native currency of Ethereum) was created before the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-20/">ERC-20 standard<\/strong><\/a> or any other standards were established. As a result, <strong>Ether is not ERC-20 compatible.<\/strong> Thus, it cannot be exchanged for other ERC-20 tokens in a decentralized manner.<\/p>\n<p>Though rather than implementing two interfaces within the same <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-smart-contract/">smart contract<\/strong><\/a>, which would add unnecessary complexity, developers came up with the solution of wrapping Ether to upgrade it to the ERC-20 standard. This allows WETH and other ERC-20 tokens to be handled within the same contract.<\/p>\n<p>Wrapping Ether creates a possibility of a <strong>direct and frictionless exchange<\/strong> between Ether and ERC-20 tokens. This means that there would be no need to rely on third parties. Besides, it helps to <strong>avoid exposing users to extra risks.<\/strong> For example, it would help to avoid unexpected transaction errors that could appear due to complicated implementations.<\/p>\n<p>Many Ethereum-based <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-are-decentralized-applications-dapps/">decentralized apps (dApps)<\/strong><\/a> use WETH instead of Ether. They do that to enable direct and decentralized <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-peer-to-peer-p2p/">peer-to-peer trading between Ether in a wrapped form and ERC-20 tokens that follow the same technical standard.<\/p>","definition":"the ERC-20 compatible version of Ether.","status":"published","meta_title":"What is Wrapped Ether (WETH)? Definition & Meaning | Crypto Wiki","meta_description":"Wrapped Ether (WETH) meaning: Wrapped Ether (WETH) - the ERC-20 compatible version of Ether.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master&rsquo;s degree on Economics, Politics &amp; Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US&rsquo; Western and Japan&rsquo;s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He&rsquo;s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain &amp; Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? The Pros & Cons","status":"published","modified_content":null},{"chapter_id":2,"order":4,"slug":"coin-vs-token","title":"Coin VS Token: How Do They Differ?","status":"published","modified_content":null},{"chapter_id":2,"order":5,"slug":"what-are-stablecoins","title":"What are Stablecoins, Altcoins & Wrapped Coins?","status":"published","modified_content":null},{"chapter_id":2,"order":6,"slug":"what-is-a-bitcoin","title":"Bitcoin: the Pioneer of the Crypto World","status":"published","modified_content":null},{"chapter_id":2,"order":7,"slug":"what-is-ethereum","title":"The Ultimate Blockchain for dApp Creation: Ethereum","status":"published","modified_content":null},{"chapter_id":2,"order":8,"slug":"what-is-cardano-in-crypto","title":"What is Cardano and What is It Used For?","status":"published","modified_content":null},{"chapter_id":2,"order":9,"slug":"what-is-shiba-inu-coin","title":"Shiba Inu: the Dogecoin 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Trailblazer","status":"published","modified_content":null},{"chapter_id":2,"order":16,"slug":"what-is-algorand-crypto","title":"Did Algorand Truly Solve the Blockchain Trilemma?","status":"published","modified_content":null},{"chapter_id":2,"order":17,"slug":"what-is-olympus-dao","title":"Does Olympus DAO Have Anything to Do With Mythology?","status":"published","modified_content":null},{"chapter_id":2,"order":18,"slug":"what-is-avax","title":"Is Avalanche Network (AVAX) Rightfully Called the Future of DeFi?","status":"published","modified_content":null},{"chapter_id":2,"order":19,"slug":"what-is-monero-coin","title":"Monero: Where Cryptocurrency Meets Cryptography","status":"published","modified_content":null},{"chapter_id":2,"order":20,"slug":"what-is-ripple-xrp","title":"Is Ripple \"it\" When it Comes to Cross-Border Transactions?","status":"published","modified_content":null},{"chapter_id":2,"order":21,"slug":"practical-use-of-cryptocurrencies","title":"The Practical Use of 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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens (NFTs)?","status":"published","modified_content":null},{"chapter_id":6,"order":1,"slug":"what-is-defi","title":"What is Decentralized Finance (DeFi)?","status":"published","modified_content":null},{"chapter_id":6,"order":2,"slug":"what-is-defi-2-0","title":"DeFi 2.0: The New Version of Decentralized Finance","status":"published","modified_content":null},{"chapter_id":6,"order":3,"slug":"what-are-dapps-in-crypto","title":"What Are dApps and How Do They Work?","status":"published","modified_content":null},{"chapter_id":6,"order":4,"slug":"defi-dapps","title":"Picking the Right dApps: Dos and Don'ts","status":"published","modified_content":null},{"chapter_id":6,"order":5,"slug":"what-is-web-3-0","title":"Web 3.0: The Future of the Internet","status":"published","modified_content":null},{"chapter_id":6,"order":6,"slug":"what-are-smart-contracts","title":"What is the Core Purpose of Smart Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming 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Cryptocurrencies?","status":"published","modified_content":null},{"chapter_id":7,"order":2,"slug":"how-to-invest-in-crypto","title":"Investing in Crypto: What Investing Options Do You Have?","status":"published","modified_content":null},{"chapter_id":7,"order":3,"slug":"ico-vs-ido","title":"ICO vs IDO vs IEO: Which One is the One?","status":"published","modified_content":null},{"chapter_id":7,"order":4,"slug":"what-is-an-airdrop","title":"What are Crypto Airdrops and How to Get Them?","status":"published","modified_content":null},{"chapter_id":7,"order":5,"slug":"how-to-get-free-crypto","title":"How to Get Free Crypto Assets?","status":"published","modified_content":null},{"chapter_id":7,"order":6,"slug":"how-to-arbitrage-crypto","title":"What is Crypto Arbitrage: The Main Principles","status":"published","modified_content":null},{"chapter_id":7,"order":7,"slug":"what-is-a-perpetual-contract","title":"Perpetual Contracts: Futures Contracts Without an Expiration 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