wrapped tokens

Wrapped tokens; what are wrapped tokens and why should you get to know them is what we will be discussing now. Wrapped tokens are essentially cryptocurrency tokens that are attached to the value of another cryptocurrency, the term wrapped comes from the fact that the original token to which this new token is pegged has to be first stored away in a vault, a sort of wrapper before it can be created on a new blockchain as a pegged token, this solves the double spend problem. Most people might wonder why create a new token that has the same value as an old token, the point was to allow different blockchains to be able to communicate with each other. For example how you can’t use etheruem on a binance smartchain, with wrapped tokens it solves the problem, you can use non-native tokens on a different platform. An example is how wrapped BTC allows people to use BTC on the ethereum platform.