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5:00Wrapped Assets and Bridges: How Value Crosses Chains
Your Bitcoin never actually moves to Ethereum. It gets locked in a vault while an IOU is minted on the other side, and that vault is exactly why bridges keep getting drained for hundreds of millions.
Blockchains cannot natively read each other. A Bitcoin UTXO means nothing to an Ethereum smart contract, so to use BTC in DeFi you do not *move* it, you immobilise it on its home chain and mint a claim against it elsewhere. That claim is a wrapped asset, and the machinery that keeps the two sides in sync is a bridge.
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