The Binance Blockchain Bridge has been upgraded to connect DeFi and CeFi.
The company behind the exchange is working to build out its infrastructure.
The second edition of Binance’s cross-chain protocol, which connects the BNB Chain, its flagship layer one blockchain, to other networks, has been launched. Binance is the world’s largest cryptocurrency exchange by trading volume.
Binance Bridge 2.0, according to a press release shared on Tuesday, will be interoperable with more blockchains, offer a better user experience, and have cheaper maintenance costs.
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Users will be able to access both traditional centralized finance (CeFi) and decentralized money through the Binance app (DeFi). Decentralized finance refers to financial transactions conducted on the blockchain without intermediaries.
Binance renamed its tier 1 (or base) blockchain BNB Chain as part of its plan to become a significant blockchain infrastructure provider. The bridge is an essential component of that drive because it allows users and developers to connect other tokens into the Binance ecosystem.
According to the news release, users can use the bridge to bring unlisted tokens onto the BNB Smart Chain as B-Tokens. B-Tokens are digital tokens that are linked to the value of a cryptocurrency. Wrapping is a technique for moving tokens from one blockchain system to another by mirroring them.
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Unlisted tokens will be saved in Funding Wallets, whereas tokens listed on Binance’s crypto market will be held in Funding Wallets. The BNB Smart Chain is a blockchain that works with the Ethereum Virtual Machine (EVM) to run smart contracts. Peer-to-peer transactions are made easier with the use of funding wallets.
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The bridge includes a new automatic B-Token circulation control system that will only hold a buffer surplus of wrapped tokens in hot wallets and mint new ones when users transport tokens from different blockchains onto the BNB Smart Chain. The native tokens linked to Binance’s ecosystem will back the rest of the circulating supply of tokens.
BNB announced that the first BSC Application Sidechain (BAS) testnet was launched by scaling platforms Celer, Ankr, and NodeReal.