Token Compatibility Development Tutorials, Guides & Insights
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ETH vs WETH: Understanding the Difference and Their Roles in Ethereum
- ETH can be wrapped into WETH and vice versa. There is no change in value—1 ETH always equals 1 WETH.
Ethereum predates the ERC-20 token standard, which was introduced to standardize token creation on the blockchain. Since ETH doesn't conform to this standard, it cannot be directly used in many decentralized applications that rely on ERC-20 tokens. WETH solves this problem by allowing ETH holders to wrap their ETH into an ERC-20 compatible token that can be used across a wide range of DeFi protocols and dApps.