How does WETH differ from ETH in the digital currency realm?
Shreenay LoreJan 07, 2022 · 3 years ago1 answers
In the digital currency realm, what are the key differences between WETH and ETH?
1 answers
- Jan 07, 2022 · 3 years agoWhen it comes to the digital currency realm, WETH and ETH have distinct roles. WETH, as an ERC-20 token, represents a wrapped version of ETH that can be used in decentralized applications and smart contracts. This wrapping process allows ETH to be compatible with the ERC-20 standard, enabling its integration with various DeFi protocols and decentralized exchanges. On the other hand, ETH is the native cryptocurrency of the Ethereum network and serves as the primary medium of exchange and store of value. While both WETH and ETH are part of the Ethereum ecosystem, their functionalities and use cases differ significantly. It's important to understand these differences to make informed decisions when engaging with digital currencies.
Related Tags
Hot Questions
- 93
What is the future of blockchain technology?
- 92
How can I buy Bitcoin with a credit card?
- 92
What are the advantages of using cryptocurrency for online transactions?
- 87
Are there any special tax rules for crypto investors?
- 60
How can I minimize my tax liability when dealing with cryptocurrencies?
- 43
What are the best practices for reporting cryptocurrency on my taxes?
- 43
How can I protect my digital assets from hackers?
- 40
How does cryptocurrency affect my tax return?