Wrapped coins are essentially a tokenized version of another cryptocurrency. There is a various cryptocurrency that is already wrapped to increase interoperability. Such as Wrapped Ethereum, Wrapped Bitcoin (WBTC) even MATIC has its own wrapped version called wMATIC that can be used on the Tezos blockchain. Since different blockchains offer different functionality could Ergo benefit from wrapping Ergo on other chains. Ergo could then derive its value from another asset or another asset could derive its value from ERGO vica-versa.
Or another scenario ERGO could allow other chains to wrap tokens on ERGO and inherit its value from that pegged token and also inherit the functions of ERGO such as using ERGO Script contracts. Proof of reserve could exist on-chain.
Wrapped tokens could allow non-native tokens to be used on the ERGO blockchain.
Since wrapped tokens require trust in the custodian holding the funds. Since ERGO does things a little differently could any way of implementing a custodian-free holding the limitations of wrapped tokens are true cross-chain transactions.
Would ERGO need to bridge in the future to scale transactions. Applications can easily share liquidity with each other and if so what would be the perfect chain to bridge with if any to inherit functions from?
If ERGO was cross-chained to a POS coin so if ERGO was cross-chained with MATIC for example we could end up with something like WERGO-POS would it make weakness in ERGO if ERGO used or hosted any cross-chains on its blockchain?
Has this idea been thought of and what are the disadvantages other than needing a trusted custodian?
I am just playing with ideas one problem with the cross-chain proposal is having ties with any POS coin are there ways of cross-chaining such coins that also use POW like ZCASH? I am learning about ERGO and its technology and would like to know the advantages and disadvantages of wrapping a POW coin such as ERGO?