What is a packed token?



Blockchains like Bitcoin and Atrium have different protocols and functions, and due to fundamental differences in their algorithms, they cannot interact with each other. Although this division and independence maintain the sovereignty and security of these blockchains, the existence of an interactive ecosystem in which data can be easily exchanged is an indisputable necessity and a major problem for these blockchains.

Some newer blockchains, such as Polkadat, were originally designed to address interoperability issues; But we still need a solution to connect larger and older networks, such as Bitcoin and Atrium. This is the purpose of making packaged tokens.

In this article, we will review fast tokens and their use, and present their types to understand what these specific tokens are and what they do. So stay with us until the end of the article.

What is a packed token?

The Rapid Token is a digital currency whose value is linked to a digital currency or other major physical assets such as gold and stocks and real estate. These tokens are designed for this purpose, which can be used in defa platforms. The main asset in the digital storage space becomes complex or so-called “fast” and a new token is created for the exchange of other platforms.

Fast tokens allow the use of non-local assets in blockchains and the creation of bridges or interfaces between networks and interoperability in the digital currency space. These symbols can represent anything; Including works of art and collectibles, commodities, digital assets, Fiat shares and securities and real estate. As Rapid tokens are linked to another asset, they must be managed by a custodian that rapes and activates the assets. In other words, it is the institutions that establish or remove the link between tokens and assets.

Wrapped Bitcoin, abbreviated wBTC, was the first Bitcoin Rapid Token to be used through smart contracts in the Atrium blockchain. Bitcoin Rapid is not the only Rapid token available, but there are other Rapid tokens that include mostly Atrium ERC-20 and China BEP-20 Binance Smart compliant assets.

What is a packed token?

It is interesting to note that although the ERC-20 tokens are built on the Atrium platform, they are not Ether compatible as they were developed earlier. So ether, like bitcoin, has to be raped to be compatible with other ERC-20 tokens; For this reason, a token version of Ether has been created on the Atrium platform. Other blockchains, such as Cardano, Polkadat and Solana, are testing Raped tokens to facilitate access to Diffy applications.

Recent projects in this area include bLuna. bLuna is in fact a rap version of the Luna token belonging to the Terra network, which can be freely traded or used as collateral in Terra protocols. Tera is a Chinese blockchain platform that uses stable coins to create a decentralized global payment system.

Types of fast tokens

Types of fast tokens

Once we understand what Rapid tokens are used for, we can point out the types of tokens and get acquainted with them. The types of quick tokens are:

  • Arranged cash quick tokens: Tokens that do not have the ability to become their main asset.
  • Quick tokens with the option to buy: Tokens that allow investors to exchange Rapid tokens for a fixed asset.
  • Fast NFTs: Not all NFT tokens are subject to the same standard. Each NFT defines its own API or standalone programming interface, which is used to generate and send tokens and display metadata. The most common standard for NFT is the ERC-721 standard, which was first used by the popular game CryptoKitties and has since become a template for future projects. Fast NFT allows users to interact with NFT or collateral on other platforms.

How does Rapid Token work?

At the request of exchanges such as Airswap, CoinList, AAVE, Zerox (0x) and Maker, the trustee generates a certain amount of Rapid tokens on a specific platform such as Atrium. In a similar process, when a Rapid token needs to be converted into a fixed asset or coin such as bitcoin, the user will ask the trustee to release the token from storage. Simply put, for every wBTC available, there is a unit of the underlying asset (such as bitcoin) held by the trustee.

However, the process of creating and managing Rapid tokens in the digital currency space has one major problem, and that is that the custodial institution must be trusted to hold funds. This trust and support of assets by intermediaries or third parties is at odds with the ideals of a free and decentralized ecosystem. However, the existence of this intermediary is an essential necessity; Because merchants cannot use Rapid tokens alone for mid-chain transactions. However, technology is evolving rapidly and we may see decentralized options for this in the near future.

Bitcoin Rapid; The most famous example of Rapad tokens

The first bitcoin rapid protocol was launched in January 2019. The protocol was developed to combine the capabilities and liquidity of bitcoin with the flexibility of ERC-20 tokens and its use in the Atrium network.

While Bitcoin itself cannot be used in Diffie transactions, Bitcoin Rapid can replace the underlying asset and be used in the Diffie ecosystem or any other decentralized application in the Atrium network.

With the rise of Defy, which now pours billions of dollars into loans, options and derivatives, such a symbol was needed. The demand for using bitcoin in Defai as a major asset was so great that it seemed practically necessary to do so.

The speed of bitcoin is a very important phenomenon in the world of digital currencies. The price of this token is equal to the original bitcoin; But its practical aspect is more noticeable and increases the possibility of using bitcoin for other purposes such as defa.

Simply put, someone who owns bitcoin can release their bitcoins and receive an annual fixed interest rate by linking their wallet to a decentralized platform through smart contracts.

The borrower can also use his digital currency as collateral, so that in case of inability to repay the loan, the collateral will be automatically deposited in the lender’s portfolio.

Lenders can profit by using this type of financing, even in declining markets where the value of assets is declining.

Frequently Asked Questions

Rapid tokens are emerging assets and there is not much information about them yet. Therefore, there may be many unanswered questions about these assets. Below we will ask and answer three important questions about Rapid tokens.

1 Are Rapid Tokens Safe?

Raped tokens are technically safe. These tokens are stored on platforms such as Atrium or Bainance Smart China, and when converted to ERC-20 or BEP-20 tokens, they will be as secure as the core network.

2. What is the purpose of the production of Rapid tokens?

The purpose of generating Rapid tokens is to enable various assets to be used in blockchain and other platforms. For example, Bitcoin Rapid can be used on Atrium Defy or Blockchain platforms for various purposes.

3. Are Rapid tokens more valuable than Quinn or the original tokens?

No, the value of the Rapid token is the same as that of Quinn or its original token.

Conclusion

In this article, we tried to look at Rapid tokens and their types and applications. Studying this article, you will find that Rapid tokens are very important for increasing the interoperability of different blockchains. With Rapid tokens, certain assets or coins can be used on other platforms and restrictions can be removed. Although there are new blockchains built with interoperability, important and widely used networks such as Bitcoin and Atrium do not take advantage of this feature and require new solutions such as Rapid Token.

Bitcoin Rapid was one of the first examples of Rapid tokens that could revolutionize the industry. Bitcoin Rapid has made it possible for bitcoin to enter other platforms and be used for financing, lending and many other purposes. In general, Rapid tokens are expanding rapidly and members of the digital currency community need to pay more attention to them.

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