Binance has taken the first step toward scaling its BNB Smart Chain so that it can accommodate different blockchains. It has announced that it has updated and renamed its previously discontinued cross-bridge platform Binance Bridge 2.0.
Binance Bridge 2.0 on BNB App
Binance Bridge 2.0 will allow BNB Smart Chain (BSC) to support tokens from other blockchains, the company announced today. To begin, ERC20 tokens are used. The platform will also allow users to access this capability straight from the Binance controlled exchange application, according to the press release.
Most ERC20 tokens can port to BSC as wrapped BEP20 tokens or BTokens using the platform. This covers those that aren’t listed on the Binance platform. The wrapped tokens can subsequently use on DeFi platforms that use BSC, such as PancakeSwap.
Additional Perks
Another benefit of the platform is that it has a new look that makes it easier to navigate. It also introduces Self-Custody Wallet, a new mechanism for users to hold unlisted tokens on the Binance app (SCW).
Tokens listed on the Binance market can store in spot or used to fund wallets when users port them across. Unlisted tokens, on the other hand, will house in the new SCW, which, as a non-custodial wallet, allows users complete control.
Blurring the Line
Binance’s centralized finance (CeFi) and decentralized finance (DeFi) services are becoming increasingly blurred as a result of the announcement. It follows the company’s recent rebranding initiatives. BNB Smart Chain renames Binance Smart Chain and Binance Chain earlier this month.
The platform’s native token, Binance Coin (BNB), has renamed BNB, which stands for Build and Build. It announced at the time that its vision for the L1 blockchain was to be a prominent player in the fast developing virtual economy.
The move also reflected the Layer 1 blockchain’s decentralized nature by separating it from the centralized Binance exchange.
Taking Ethereum’s Position
As a smart contract platform, BSC is quickly gaining traction as a serious competitor to Ethereum. In a recent comparison, BSC demonstrated that it has considerably lower transaction fees than Ethereum. In comparison to Ethereum’s double-digit costs, BSC charges an average of $0.37 every transaction.
Meanwhile, BNB has maintained its position as the fourth largest cryptocurrency in terms of market capitalization. It is worth $73 billion dollars. The price of BNB is currently around $439, down 0.07 on the day. BNB, on the other hand, has been on a tear recently, rising 7.76 percent in the last week.
