What is Wrapped Toncoin?

We often mention “Wrapped Toncoin” in our content, but we’ve never explained what it is.

In this informative post, we’ll tell what wrapped tokens are and why we need them.

So, what is it?

In simple terms, a wrapped token is a token that is transferred from one blockchain to another.

Let’s use an example:

With the TON–BNB Chain cross-chain bridge, you can send your Toncoin to BNB Chain and use it with the network’s native services and apps.

More specifically, the transaction goes through a mint-and-burn process. If you send 10 Toncoin, the TON blockchain will block and remove 10 “native” coins from circulation. Then, BNB Chain will mint 10 equivalent tokens.

On BNB Chain, your coins will be called Toncoin BEP-20 (the BNB Chain token standard), and they’ll be entirely analogous to your native Toncoin. This is what we call wrapped tokens.

You can transfer your crypto back anytime, and 1 Toncoin BEP-20 will always be equal to 1 Toncoin.

“Why do we need wrapped tokens?”

Wrapped tokens are needed to simplify inter-blockchain interactions. Below are a few excellent examples of Wrapped Toncoin use cases:

— You can transfer it to another blockchain to use with its native services and apps.

— You can become a pool liquidity provider on Uniswap on the Ethereum network and PancakeSwap on BNB Chain, two popular decentralized exchanges on their respective networks.

— You can store your Wrapped Toncoin in the popular crypto wallet MetaMask.

Currently, there are two cross-chain bridges with the TON blockchain:

— TON–Ethereum

— TON–BNB Chain

In the crypto world, both regular users and blockchain developers actively transact with wrapped tokens.