BTokens will be pecked on a ratio of 1:1 to the underlying assets and can be reverted back to the original cryptos.
Binance bridge was introduced a couple of years ago to increase interoperability between other Blockchains. However, it only supported tokens listed on the platform. According to the latest development, the project has been upgraded and relaunched to Binance Bridge 2.0. This means users will be able to bridge tokens not listed on the Binance platform from any blockchain to the BNB Chain.
These unlisted tokens would be allowed on the Binance Smart Chain as Wrapped BTokens. Users can then wrap ERC20 tokens for BEP20 BTokens. From there, they can proceed to stake their Ethereum or other supported assets with Defi protocols running on the BNB Smart Chain.
This upgrade has been said to address some of the challenges involving swaps, high fees, and the long wait time for transactions to be completed. The Binance Bridge 2.0 works with low fees and a transaction speed of 3 seconds.
BTokens will be pecked on a ratio of 1:1 to the underlying assets and can be reverted back to the original cryptos. It was further stated that bridged tokens not listed on the platform would be transferred to the funding wallet only. The bridged tokens listed on the platform would also be transferred to the funding or spot wallet. Another source states that a new self custody wallet will be available through the Binance App for the unlisted bridged tokens.
“With Binance Bridge 2.0, we can make decentralized finance accessible to a larger audience worldwide while still providing the seamless user experience that centralized finance offers. We are already seeing this via the tremendous adoption of the PancakeSwap Mini-app,” said Mayur Kamat, head of product at Binance.
In the future, they plan on upgrading their mobile app to ensure that users facilitate this conversion in a single click.
Also, all Ethereum native tokens will be supported by the Binance Bridge 2.0.
“The most important update is that you will be able to do all of this directly from your Binance account without creating a third-party wallet,” according to Binance. “The listed tokens will end up directly in your Funding or Spot Wallet, while you can store the unlisted bridged tokens in a new self-custody wallet (SCW) within the Binance App,” Binance added.
The cross-chain bridge will ensure that interoperability between different blockchains is improved and the Defi on the BNB Smart Chain are directly accessed as stated by the platform. This development is expected to increase the demand for its platform and eventually reflect in its price.
Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
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