Step 1: Find current required by device.
Power delivered:
\[
P = VI
\]
\[
10 = 20 \times I
\Rightarrow I = 0.5\,A
\]
Step 2: Voltage drop in wire.
\[
V_{loss} = IR = 0.5 \times 2 = 1\,V
\]
Step 3: Power loss in wire.
\[
P_{loss} = I^2R = (0.5)^2 \times 2
\]
Step 4: Simplify.
\[
P_{loss} = 0.25 \times 2 = 0.5\,W
\]
Step 5: Physical interpretation.
Power loss occurs due to Joule heating in transmission wire.
Step 6: Final conclusion.
Thus, wasted power is:
\[
\boxed{0.5\,W}
\]