About Binance Bridge
Summary
The Binance Bridge project aims to improve interoperability between different blockchains. It enables anyone to convert their crypto assets into Binance Chain and Binance Smart Chain wrapped tokens (or back from tokens).
Why is this useful? In fact, you can use your BTC, ETH, USDT or other assets in Binance Smart Chain (BSC) DApps this way. Do you hold BTC for a long time but want to get the latest BSC liquidity mining opportunities? No worries, you can participate in DeFi on Binance Bridge Smart Contract Development Services Chain while maintaining your exposure to Bitcoin.
Introduction
Currently, there is a small problem in the crypto space that different blockchains cannot really communicate with each other. If you made a Bitcoin transaction, the Ethereum blockchain would have no way of knowing about it. If we look at the big picture and look to the future, it may be possible to solve this problem in some way through new technologies. However, a faster solution that is already available is to wrap coins and tokens.
Wrapped Tokens allow you to use native coins and tokens of other blockchains as tokens on different blockchains, such as Binance Smart Chain. We already see how this works with tokenized BTC on Ethereum . The Binance Bridge project brings this concept to Binance Chain and Binance Smart Chain.
What is the Binance Bridge Project?
The Binance Bridge project is a Cross chain bridge development service designed to improve interoperability between different blockchains . It essentially allows anyone to convert selected tokens into wrapped tokens (or “pegged tokens”) for use on Binance Chain and Binance Smart Chain. In this way, digital assets such as BTC, ETH, USDT, LTC, XRP, LINK, ATOM, DOT, XTZ, ONT, etc.
By using the Binance Bridge Portal , you can access cross-chain liquidity on Binance Chain and Binance Smart Chain in a few simple steps.
How does the Binance Bridge project work?
Wrapping a coin or token as a Binance Chain version is actually quite simple. Using Binance Bridge service, you can freely convert crypto assets between native blockchain and Binance Chain/Binance Smart Chain. For example, if you are transferring USDT from Ethereum to Binance Smart Chain, Binance Bridge supports cross-chain conversion of Ethereum ERC-20 to Binance BEP-2 or BEP-20. Notably, these wrapped tokens are backed by real coins and tokens on public addresses.
Currently, the Binance Bridge project supports ERC-20 and TRC-20 cross-chain transfers. TRC-20 is a similar standard on the TRON network.
By the way, BEP-2 is the token standard on Binance Chain, while BEP-20 is the token standard on Binance Smart Chain. The native currency on both blockchains is Binance Coin (BNB). If you want to learn more about how these parallel blockchains work, see Introduction to Binance Smart Chain (BSC) .
After setting the parameters, the conversion time is very short, and it takes about a few minutes to perform a cross-chain conversion. Of course, this also depends on the confirmation time of the blockchain network. what does this mean? Simply put, this process is based on the blockchain you are trying to redeem and may take longer in case of traffic congestion and high transaction volume.
In terms of fees, Binance Build a cross chain bridge does not charge any conversion fees. You only pay network transaction fees on the blockchains involved in your conversion.
Do I have to have a Binance account to use Binance Bridge? it’s not true. The Binance Bridge interface is open to any address, no need to register a Binance account.
On the other hand, if you have a Binance account, you can use some deposit and withdrawal functions for BEP-2 and BEP-20 assets. This way, you don’t have to worry about packaging your own assets, but can store, trade, and transfer like any other token.
What are “swap in” and “swap out”?
The “Swap In” operation allows you to convert the native blockchain to Binance Chain/Binance Smart Chain tokens. Conversely, a “swap out” operation means switching from Binance Chain/Binance Smart Chain tokens to native blockchain tokens.
To complete the “swap in” operation, first you need a compatible wallet, such as Binance Chain Wallet or MetaMask .
Select the blockchain you wish to convert and specify the amount. Binance Bridge will generate an address for you to which you must deposit funds. You must deposit to this address within the specified time period. If you deposit funds to this address within this time period, Binance Bridge will send an equal amount of wrapped tokens to your Binance Chain or Binance Smart Chain address. You can get a step-by-step guide for doing this in the Binance Bridge Getting Started Guide.
Once the transaction is completed, Binance Bridge will lock the tokens, and the “swap-in” operation to Binance Smart Chain is now complete. At this point, you can start using your pegged tokens.
Note that if you want to convert large amounts, it’s best to start with smaller amounts first. This way, you can check that everything is ok before submitting a large transaction. Alternatively, you can also perform the same process directly on Binance .
Summarize
The Binance Bridge project is an important tool for increasing the cross-compatibility in the blockchainx space. Anyone can exchange coins and tokens that can be used on Binance Chain/Binance Smart Chain. Over time, the number of supported tokens will further increase, allowing for better access to liquidity on Binance Smart Chain.
Binance Bridge is part of a larger project. Binance aims to further increase cross-chain liquidity between different blockchains. Stay tuned for more info!