What is the Binance Bridge?
The Binance Bridge is intended to allow different blockchain ecosystems to interact. Binance Chain and Binance Smart Chain wrapped tokens can be used to convert crypto assets to (and from) Binance Chain and Binance Smart Chain tokens.
It offers the opportunity to place your Bitcoin, Ethereum, USDT, or other assets in Binance Smart Chain (BSC) DApps. No worries. You can participate in DEFi while still benefiting from exposure to your Bitcoin on Binance Smart Chain.
There is a slight problem in the crypto sector at the moment. A different blockchain won’t be able to converse with a different blockchain.
Bitcoin transactions won’t be recorded on the Ethereum blockchain if they’re made. This problem will likely be solved in the future with new technology. Nevertheless, an option that is already available today is tokenization, which is to say, wrapped coins and tokens.
Binance Smart Chain lets you use BNB, Binance token, and other native blockchain coins as tokens on another blockchain, such as Tron.
Wrapped Bitcoin on Ethereum offers an example of how this can work. This concept will be introduced on Binance Chain and Binance Smart Chain using the Binance Bridge Project.
The Binance Bridge Project aims to connect different blockchains using a cross-chain bridging service. Converting coins to wrapped tokens (or “pegged tokens”) is as simple as choosing a coin on the market and clicking “convert to pegged token.”
All assets available on the Binance Chain ecosystem such as BTC, ETH, USDT, LTC, XRP, LINK, ATOM, DOT, XTZ, ONT, and more can be found within this initiative.
Cross-chain liquidity on Binance Chain and Binance Smart Chain is made accessible to users through the Binance Bridge portal with just a few clicks.
How Does the Binance Bridge Work?
You can convert cryptocurrencies on the native blockchain into Binance Chain and Binance Smart Chain by using the Binance Bridge service. Let’s use USDT as an example.
If you send USDT from the Ethereum blockchain to the Binance Smart Chain, the Binance Bridge will be able to convert Ethereum ERC-20 tokens to Binance BEP-2 tokens or BEP-20 tokens.
Binance Bridge Project currently supports transfers between ERC-20 and TRC-20 tokens. This information is public knowledge, so it will be of little surprise to you that ERC-20 tokens are widely used on Ethereum. TRC-20 is comparable to TRON’s TRC standard.
BEP-2 is a standard token on Binance Chain, while BEP-20 is a standard token on Binance Smart Chain. On both chains, the native currency is BNB.
The conversion time is fast and should take no more than a few minutes to execute. This depends on how long it takes for the blockchain network to confirm transactions.
What exactly does this mean? To an extent, this is dependent on the blockchain you are trying to convert from. During heavy network activity and congestion, the process will take longer.
How Do You Access the Binance Bridge?
You will need to hold coins on your own personal wallet to use the Binance Bridge. From there, you can access the Binance Bridge website and start converting your coins. Note that there is currently a maximum amount of coins you can convert at any given time for a particular wallet.
There are no fees associated with Binance Bridge’s conversion. Network transaction fees will only be incurred as gas fees on the respective blockchains.
To use the Binance Bridge, you do not need a Binance account. Anyone, regardless of account balance, can access the Binance Bridge using an address other than a Binance address.
Deposits and withdrawals are available for a variety of BEP-2 and BEP-20 assets if you have a Binance account. Assets you wrapped yourself are susceptible to loss, which makes it difficult to store, trade, and transfer them.