By facilitating the conversion of crypto assets between Blockchains, the Binance Bridge Project wants to improve interoperability. Anyone can convert crypto assets to Binance Chain and Binance Smart Chain wrapped tokens (and back).
Well, you can use these assets in Binance Smart Chain (BSC) DApps. Do you hold BTC, ETH, USDT, or any other assets? If so, you can utilize the latest yield farming opportunities on BSC. With Binance Smart Chain you can continue to participate in DeFi while maintaining exposure to your Bitcoin.
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The crypto space is currently experiencing a bit of a problem in that different blockchains aren’t really able to communicate. For instance, a Bitcoin transaction will never reach the Ethereum blockchain. I believe that this will be solved by new technology in the future. However, wrapped coins and tokens are a much faster and cheaper solution that is already available today.
We have already seen how wrapped tokens can be used with tokenized BTC on Ethereum. Wrapped tokens allow you to use coins from other blockchains on Binance Smart Chain. As a result of the Binance Bridge Project, Binance Chain and Binance Smart Chain are introduced to this concept.
What is Binance Bridge work?
A cross-chain bridging service, Binance Bridge aims to bridge disparate blockchain networks. It converts selected coins into wrapped tokens (or “pegged tokens”), which can be used on Binance chains and Binance smart chains. Binance Chain can now accept BTC, ETH, USDT, LTC, XRP, LINK, ATOM, DOT, XTZ, ONT, and other digital assets.
You can access Binance Chain liquidity on Binance Smart Chain and Binance Chain directly using the Binance Bridge portal.
How does Binance Bridge work?
The process for converting cryptocurrencies into Binance Chain versions is actually quite simple. Using the Binance Bridge service, you can convert crypto assets between the native blockchain and Binance Chain/Binance Smart Chain. In the example above, Binance Bridge can allow you to transfer USDT from Ethereum to Binance Smart Chain, which is a process known as cross-chain conversion. It’s also worth noting that the wrapped coins are backed by real coins on public addresses.
In addition to ERC-20 and TRC-20 cross-chain transfers, the Binance Bridge Project also supports cross-chain transfers based on Ethereum’s ERC-20 standard and TRON’s TRC-20 standard.
In addition, BEP-2 is a token standard on Binance Chain, while BEP-20 is a token standard on Binance Smart Chain. Both chains have BNB as their native currency.
It should take around a few minutes to perform a cross-chain conversion once you set the parameters. It will, of course, depend on the network’s confirmation time. Accordingly, depending on what blockchain you’re trying to convert to, it may take longer to convert during times of heavy congestion and activity.
It is important to note that Binance Bridge doesn’t charge any conversion fees. Your only responsibility is to pay network fees for the networks you are converting between.
Is a Binance account required to access the Binance Bridge? No. You do not need a Binance account to access the Binance Bridge interface.
Alternatively, if you already have a Binance account, you can deposit and withdraw BEP-2 and BEP-20 assets. This way, you don’t need to worry about wrapping the assets yourself, and you can store, trade, and transfer them like any other token.