I'm trying to wrap my head around how WBTC works on the Ethereum blockchain.
My understanding at the moment is that when BTC is sent to a particular BTC address, then a WBTC is generated on the Ethereum Blockchain and given to a specific Ethereum Address. If that WBTC is sent back to the Ethereum Start Contract to be exchanged for an original BTC, then that WBTC is burnt, and the original BTC is taken out in the BTC blockchain.
If all the above is true, then my Question is:
- Who is the middle man between the BTC blockchain and the Ethereum blockchain? Is there a third Blockchain (as I have heard some exist) that control the BTC addresses and Ethereum addresses to make this possible, or how does it work?