Binance Bridge 2.0 will support almost all Ethereum tokens to be converted into BNB Smart Chain B-Tokens

Binance Bridge 2.0 unlocks a useful feature for crypto community

Binance Bridge 2.0 announced the release, which will support almost all Ethereum tokens to be converted into BEP20 BTokens, and then can directly access the BNB Chain dApp.

Binance Bridge 2.0 will be compatible with more blockchains, feature a better user experience, and decrease maintenance costs. The bridge will allow users to access traditional centralized finance (CeFi) and decentralized finance (DeFi) via the Binance app. Decentralized finance refers to the financial activities carried out on the blockchain, without any intermediaries.

Binance rebranded its layer 1 chain to BNB Chain in February, as it pushed towards being a key blockchain infrastructure provider. The bridge is an important element of that push as it allows users and developers to bring other tokens on Binance’s ecosystem.

Through the bridge, users can bring unlisted tokens on BNB Smart Chain as B-Tokens, the press release said. B-Tokens are tokens pegged to the value of some underlying cryptocurrency. This technology, known as wrapping, is used to bring tokens from one blockchain protocol on another by essentially mirroring them.

Tokens that are listed on Binance’s crypto exchange will be stored in Funding or Spot Wallets, whereas unlisted tokens will be saved on Funding Wallets. BNB Smart Chain is a blockchain that is compatible with the Ethereum Virtual Machine, where smart contracts are executed. Funding wallets facilitate peer-to-peer transactions.

The bridge comes with a new automated circulation control system for B-Tokens, which will only keep a buffer surplus of the wrapped tokens in hot wallets and mint new ones when users bring tokens from different blockchains on BNB Smart Chain. The rest of the circulating supply of tokens will be backed by the native tokens bridged to Binance’s ecosystem.

Separately, BNB said that scaling platforms Celer, Ankr, and NodeReal launched the first BSC Application Sidechain (BAS) testnet.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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