Native and wrapped tokens.
Crypto currency world have multiple kind of tokens and Coins. Let's today talk on native token and wrapped tokens.
Native is original coin of a blockchain.
Wrapped token is tokenized copy that works on another blockchain for DeFi, DApps, and interoperability.
Native Token.
A native token is the original cryptocurrency of a blockchain. It is used to pay transaction (gas) fees, secure the network, and interact with core features of that blockchain. Examples include BTC on Bitcoin, ETH on Ethereum, and BNB on BNB Chain. Native tokens exist only on their own blockchain.
Wrapped Token.
A wrapped token is a blockchain-compatible version of another asset, usually created to be used on a different blockchain. It is typically 1:1 backed by the original (native) token and locked in a smart contract or custodian. Examples include WBTC (Wrapped Bitcoin) on Ethereum and WETH (Wrapped Ether).
Let's clear the concept by an example,
Here’s a clear, practical explanation without unnecessary hype.
Millix is the native coin of the Millix blockchain. It mostly used on Millix Blockchain for different purposes with different scalability like on Millix.com , Tangled Browser , Swapland , Cobra Helix, Wavyl , Nutanica , On The Node , Tangled Trivia , PoofVPN and Splot.io .
Key characteristics,
Runs on the Millix DAG-based network (not Ethereum-compatible by default) Used for,
- Transaction fees
- Payments within the Millix ecosystem
- Stored in native Millix wallets
- Cannot directly interact with Ethereum, BSC, or other smart contract chains
Think of Millix as “layer 1 money” that lives only on its own network. But ,
Wrapped Millix (wMLX) is a tokenized representation of Millix on a smart contract blockchain (such as Ethereum or Binance Smart Chain).
Key characteristics.
- Issued as a smart contract token (e.g., ERC-20 / BEP-20)
- 1 wMLX = 1 MLX (pegged value)
- Backed by locked real Millix
Can be used in,
- DeFi (DEXs, liquidity pools, staking)
- Smart contracts
- Cross chain applications.
Think of wMLX as Millix wearing a “passport” to enter the smart contract world.
Conversion.
Conversion is called “wrapping” in language of crypto. All big names like Bitcoin, tether , BNB and Solana have their wrapped tokens and it is common practice. If you want to wrap Millix into wrapped Millix, what should you will do?
When you will wrap MLX → wMLX ,
1. Your MLX is locked in a bridge or custodian contract.
2. An equal amount of wMLX is minted
3. wMLX is sent to your Web3 wallet
When you unwrap wMLX → MLX,
1. wMLX is burned
2. Locked MLX is released back to you
3.This keeps the 1:1 peg intact.
How to Convert Millix into Wrapped Millix.
🫰Hold MLX in your Millix wallet
🫰Go to the official Millix wrapping bridge
🫰Connect your original wallet (Your Millix wallet )
🫰Your Web3 wallet (for example MetaMask , trust wallet)
🫰Choose amount to wrap
🫰Confirm transaction
🫰Receive wMLX in your Web3 wallet
Only use official Millix tools or bridges. Wrapping usually involves custody or smart contracts using unofficial bridges risks loss of funds.
Now question arises that Why People Use Wrapped Millix ?
Yes , the answer is simple, they do for ,
- Access DeFi liquidity
- Trade on DEXs
- Participate in staking, farming, lending
- Enable cross-chain utility
Without wrapping, Millix stays isolated from the broader crypto economy.
Conclusion.
Millix (MLX) is Cash in your local country while Wrapped Millix (wMLX) is same cash exchanged into an international digital card but Value stays the same, usability expands. That's the basic concept in process of wrapping any crypto currency.
Thank you so much for your valuable time. Hope your concept about native and wrapped token has some clarity. Like , upvote and leave comment for feedback.
Note: The article also published on my read.cash Wall.
The lead image created & edited on Meme Generator app.
Cheers,
Amjad
