Cryptocurrency, Cryptocurrency Exchange, News, Regulation

Binance Rollouts Upgraded Blockchain Bridge

On March 29, the popular and controversial crypto exchange, Binance, revealed that its Binance bridge 2.0 is now available for its users. Through this feature, Binance users can bridge digital assets from other blockchains to the Binance chain even when the tokens are not available on the Binance app. Unlisted bridged tokens will be stored in the funding wallet, while bridged tokens can be transferred to spot wallets or funding wallets.

What Users Can Do With The Binance Bridge 2.0

Users can use the typical deposit or withdrawal features to bridge in or bridge out tokens between the BNB chain and their desired blockchains. Binance’s long-term goal is to upgrade this mobile app such that users can complete their conversions in one click.

While commenting on this launch, Binance’s product head stated that “a larger audience can now access the Defi space through our Binance bridge 2.0. More importantly, there would still enjoy the seamless experience we offer through our CeFi services and products. This is already evident in the fast-growing adoption of Pancakeswap’s mini-app.”

Other Features In Binance’s New Bridge 

Besides the previously mentioned features, Binance also incorporated a completely new automated token circulation feature. However, part of the announcement for the launch of this bridge reveals that the exchange won’t maintain excess pegged tokens (also called wrapped assets) unless they are buffer-size in hot wallets.

On the contrary, it will issue more tokens into the BNB chain when users withdraw the pegged tokens. The announcement further states that the bridge will also support other circulation from native tokens that users have deposited through the original blockchains.

Users willing to switch between pegged and original tokens can deposit one into Binance and withdraw the other one. However, any excess token will be automatically transferred to cold wallets where the burning takes place. The platform now has a new look that makes navigation very easy. Users can also use the self-custody wallet on the Binance app to store unlisted tokens.

Binance’s Rebranding Efforts Continue

Over the last couple of months, Binance has been several rebranding moves. Earlier in the month, the exchange announced that the Binance smart chain and Binance chain will now be collectively known as BNB smart chain.

Also, the name of the exchange’s governance token will no longer be Binance coin but simply BNB (which means build and build). Binance reiterates that one of its short-term objectives is making its Layer-1 (L1) blockchain a vital part of the digital economy.

However, the company disclosed that the L1 blockchain and the Binance exchange differ because the former is decentralized while the latter is centralized. As Binance makes these moves, it gradually becomes the blockchain that would most likely rival Ethereum as a smart contracts network. BNB remains among the top four cryptos based on market cap. Based on the actions of the exchange this week, it is no wonder that the BNB price has been rising since the beginning of this week.

 

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