Wrapped Ether (WETH)

The tokenized version of Ether is called Wrapped Ether or WETH. Ether is the native token of the Ethereum blockchain system and is the second largest cryptocurrency by market cap. A wrapped version of this Ether is pegged to Ether and has equal value as the original coin. Therefore, the value of 1 WETH is same as 1 ETH. This wrapped version can be unwrapped as and when required.

There are numerous blockchains in the market today, with every blockchain having its own native token. However, the interoperability between these blockchains is very little. Therefore, the native token of one blockchain cannot be used on another blockchain. Wrapping tokens is the answer to that question. Wrapping of a coin is the way of converting the original crypto asset into a token by applying the blockchain’s token standard around it. While people tend to confuse between a coin and a token, one must know that coin is native to a blockchain, while a token can run on other blockchains. While Ether is the coin of the Ethereum blockchain network, Shiba Inu is a token running on the Ethereum blockchain without having its own blockchain network.