Summary

The Binance Bridge project aims to increase interoperability between different blockchains. It allows anyone to convert their crypto assets into Binance Chain and Binance Smart Chain wrapped tokens (or from tokens back into crypto assets).

Why is this useful? In fact, you can use your BTC, ETH, USDT, or other assets in Binance Smart Chain (BSC) DApps this way. Are you holding BTC for the long term but want access to the latest BSC liquidity mining opportunities? Don’t worry, you can participate in DeFi on Binance Smart Chain while maintaining your exposure to Bitcoin.

Introduction

Currently, there is a small problem in the encryption field, that is, different blockchains cannot truly communicate with each other. If you make a Bitcoin transaction, the Ethereum blockchain has 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 now available is to wrap coins and tokens.

Wrapped tokens allow you to use other blockchains’ native currencies and tokens as tokens on different blockchains, such as Binance Smart Chain. We already know 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 bridging 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. are introduced into the Binance Chain ecosystem.

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 currency or token into a Binance Chain version is actually very simple. Using the Binance Bridge service, you can freely convert crypto assets between the native blockchain and Binance Chain/Binance Smart Chain. For example, if you transfer 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 cross-chain transfers of ERC-20 and TRC-20. As you may already know, ERC-20 is a widely popular token standard on Ethereum. TRC-20 is a similar standard on the TRON network.

By the way, BEP-2 is the token standard on Binance Chain, and 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 operate, 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 that mean? Simply put, this process is based on the blockchain you are trying to redeem and may take longer in cases of traffic congestion and high transaction volumes.

In terms of fees, Binance Bridge does not charge any conversion fees. You only need to pay network transaction fees on the blockchain involved in your conversion.

Is it necessary to have a Binance account to use Binance Bridge? it's not true. The Binance Bridge interface is open to any address, and there is no need to register a Binance account.

On the other hand, if you have a Binance account, you can use the deposit and withdrawal functions for some BEP-2 and BEP-20 assets. This way, you don't have to worry about packaging the asset yourself, but can store, trade, and transfer it just like any other token.

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What are "swapping in" and "swapping out"?

The “swap-in” operation allows you to convert your native blockchain into Binance Chain/Binance Smart Chain tokens. In contrast, a "swap out" operation means switching from Binance Chain/Binance Smart Chain tokens to native blockchain tokens.

To complete the "swap in" operation, you first need a compatible wallet, such as Binance Chain Wallet or MetaMask.

Select the blockchain you wish to convert and specify the quantity. Binance Bridge will generate an address for you to which you must deposit funds. You must deposit funds to this address within a 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 to 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 complete. At this point, you can start using your pegged token.

Please note that if you want to convert a large amount, it is best to start with a smaller amount first. This way, you can check that everything is fine before submitting a large transaction. Alternatively, you can perform the same process directly on Binance.

Summary

The Binance Bridge project is an important tool for increasing cross-compatibility in the blockchain space. Anyone can swap into coins and tokens that can be used on Binance Chain/Binance Smart Chain. Over time, the number of supported tokens will be increased further, 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 information!