What is Binance Bridge?
The Binance Bridge project is a cross-chain bridge service born with the aim of increasing interoperability between blockchains. Basically, this bridge allows users to convert desired coin/token into wrapped token to be used on Binance Chain and BSC (BNB Beacon Chain and BNB Chain currently). Thanks to this, assets from other ecosystems such as BTC, ETH, USDT, ATOM, DOT,… easily access the BNB Chain ecosystem.
Before the launch of v2, around October 2020, the first version of Binance Bridge was born.
How Binance Bridge Works
Basically, Binance Bridge is a Centralized Cross-chain Bridge, which requires users to trust third parties here is Binance. Binance will act as a broker, they receive tokens of this chain, then mint wrapped tokens in another chain. You can easily use Binance Bridge by depositing and withdrawing tokens and choosing a network to send that token, provided that Binance supports that network of course.
For example: Brothers depositing USDT on TRC-20 network (Tron) into Binance, and want to transfer this USDT to BNB Chain, just go to Withdraw (Withdraw), select USDT and BNB Chain network. So you have used Binance Bridge on Binance exchange.
It can be seen that Binance Bridge has the following characteristics:
- Advantage: Simple, convenient and suitable for new users.
- Defect: Users are dependent on third parties, they have full rights to use the sender’s assets.
While a Binance scam is highly unlikely, there is controversy over whether Binance prints more wrapped tokens than users deposit. This is still a weak point of a centralized bridge, the deposit and withdrawal metrics are quite difficult to track. In addition, currently you can only use Binance Bridge with tokens listed on Binance.
Introducing Binance Bridge 2.0
Binance Bridge 2.0 introduces a new way to bridge listed and selected unlisted tokens from Ethereum to BNB Smart Chain as BTokens. You can use your wrapped tokens with the BNB Chain ecosystem and explore DeFi, blockchain games, metaverse, and more.
We repurposed the previously decommissioned Binance Bridge, added new features, and gave it a new look to make bridging between Ethereum and BNB Smart Chain easier than ever before. The original Binance Bridge supported only tokens listed on Binance.com, but with Binance Bridge 2.0, you can look forward to bridging even more tokens, including some of the tokens not listed on our exchange. These unlisted tokens will be bridged to BNB Smart Chain as wrapped BTokens and enable you to experience the decentralized BNB Chain ecosystem.
The most important update is that you will be able to do all of this directly from your Binance account without creating third-party wallets. 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. If you don’t have your SCW yet, Binance App will guide you through the process. The main advantage of having your own SCW is that only you will hold the private keys.
With Binance Bridge 2.0, you can wrap ERC20 tokens to receive BEP20 BTokens and immediately start staking your Ethereum or other supported assets with DeFi protocols running on the BNB Smart Chain. No more swaps, high fees, or long wait times for your transaction to complete. BTokens are pegged on a 1:1 basis to the underlying asset. You can redeem your BTokens back to the original asset at any time.
Binance Bridge 2.0 is a trusted bridge protected by the highest security standards of Binance, operating on the BNB Smart Chain with low fees of only a few cents and fast transaction times of just 3 seconds. Binance Bridge 2.0 will support almost all Ethereum-native tokens and give you direct access to BNB Smart Chain dApps such as the most-used dApp globally – PancakeSwap. Support for more blockchains and dApps is coming in the future.
This cross-chain bridge significantly improves interoperability between different blockchains and gives you direct access to the world of DeFi on the BNB Smart Chain.