Tokenization Development Tutorials, Guides & Insights
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ETH vs WETH: Understanding the Difference and Their Roles in Ethereum
WETH (Wrapped Ether) is a token that represents an ERC-20 standard version of ETH. While ETH is the core currency of the Ethereum blockchain, it is not compatible with the ERC-20 standard, which governs the majority of tokens on the Ethereum network. This is where WETH comes into play.
WETH is simply ETH wrapped in a smart contract to make it compatible with the ERC-20 token standard. Wrapping ETH into WETH enables users to interact with decentralized applications (dApps), decentralized exchanges (DEXs), and DeFi platforms that require ERC-20 tokens.