ERC-20 Bitcoin: What It Is and Why It Doesn't Exist

When people talk about ERC-20 Bitcoin, a tokenized version of Bitcoin on the Ethereum blockchain. Also known as wrapped Bitcoin, it wBTC, it’s not Bitcoin itself—it’s a digital representation locked behind smart contracts. You can trade it on Ethereum-based exchanges, use it in DeFi apps, or earn interest with it—but you’re not holding actual Bitcoin. You’re holding a claim to it.

This idea of wrapping Bitcoin isn’t new. It started because Bitcoin’s network doesn’t support smart contracts like Ethereum does. So developers created tokens that mirror Bitcoin’s value but live on Ethereum. Wrapped Bitcoin (wBTC), the most popular ERC-20 Bitcoin token is backed 1:1 by real BTC held in custody by trusted custodians. Other versions like renBTC, a decentralized alternative using renVM and sBTC, a version from Synthetix follow similar logic but use different trust models. Each has trade-offs: centralized custody means faster fixes if something breaks, but you’re trusting third parties. Decentralized versions are more trustless but slower and more complex.

People use ERC-20 Bitcoin to access DeFi—lending, borrowing, yield farming—without leaving Ethereum. But it’s not without risk. If the custodian gets hacked, if the smart contract has a flaw, or if the peg breaks, your token could lose value. And no matter how many times you hear "ERC-20 Bitcoin," remember: it’s not Bitcoin. It’s a derivative. Real Bitcoin lives on its own blockchain, with its own rules, its own miners, and its own security. You can’t move real BTC into an ERC-20 wallet. You can only trade it for a token that promises to represent it.

The posts below dig into the messy reality of crypto tokens that look like Bitcoin but aren’t. You’ll find deep dives on projects that claim to be Bitcoin-based, scams pretending to be ERC-20 Bitcoin, and real tokens like SOPHON and Atomicals that try to bring tokenization to Bitcoin’s own chain. Some are technical experiments. Others are pure hype. None are the real thing. If you’re looking for how Bitcoin works on other chains—or how to avoid getting fooled by fake versions—what follows is your guide.