The first "meme coin" dogecoin (DOGE) should get a wrapped version to reach new heights as it will expand the coin's utility and adoption, DOGE Co-Founder Billy Markus wrote in a tweet.
He also added that the coin will not be considered a meme product any longer after businesses will start accepting DOGE as a payment method, as a tipping currency and after blockchain developers will find a way to bridge the gap between the Ethereum blockchain and the Doge blockchain.
Markus, who co-developed the cryptocurrency with Jackson Palmer back in 2013, says that the wrapped version would unlock the ability for NFT marketplaces like OpenSea to accept the coin as a payment method:
[...] basically a bridge would allow transfer from doge to a wrapped doge token and back to unlock the tech.
But what are these wrapped coins? On a very basic level, wrapped coins are copies of original cryptocurrencies. They are pegged to the value of the original coin and can be unwrapped at any point with the help of a dedicated smart contract.
Backward compatibility is a hard nut to crack in the blockchain world as different networks have different algorithms. This means that the "original" bitcoin (BTC) based on the Bitcoin blockchain cannot be stored on the Ethereum blockchain and vice versa. But, unlike the Bitcoin blockchain, Ethereum has smart contracts (like traditional software, but on the blockchain network) that allow developers to programatically make digital copies of coins between incompatible networks if certain conditions are met.
This is how wBTC, an Ethereum-based coin pegged in price with the original crypto, was made. BitGo, a cryptocurrency custodian, accepts BTCs as collateral to issue wBTC. This compatibility opens way more possibilities for users, but also raises centralization questions and issues related to trust and third-party intermediaries.