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What do you do when the two of your friends are unable to talk due to their difference in opinion? The first solution that came into our mind is to be a bridge between them, to connect them both by becoming a medium. Similarly, our different blockchains can’t talk, which means if you are working on Ethereum then, you will be unaware of what is happening in bitcoin?
Because they are programmed in such a manner that ensures zero mutability, and hence to bridge this difference, Binance Cryptocurrency exchange has launched a project called, ‘Binance Bridge’. If you are interested in bitcoin trading visit https://bitcoinvictory.app/.
Introduction
If you look, you will find a lot of problems in the crypto space at present, which may be because blockchains cannot talk to each other. If you transact with bitcoin, you will never know how it happened with the Ethereum blockchain. If we zoom out and look at the future with it, then to avoid the problem, we can solve it by using some new technology. It is supposed to be a fast solution that is made available in the form of tokens and wrapped coins. Wrapped tokens can be used to tokenize some of the blockchain’s native tokens and coins on a chain, using Binance Smart Chain. You already know how tokens work with BTC on ETH. Binance Bridge introduces Binance Smart Chain and Binance Chain to this concept.
What is the Binance Bridge?
Binance Bridge is a cross-chain bridging service, it is used with blockchain. This essentially involves converting selected coins to wrapped tokens, and you can use it on Binance Smart Chain and Binance Chain. It brings digital assets like BTC, USDT, ETH, LTC, LINK, ATOM, DOT, XRP, ONT and XTZ to the Binance Chain ecosystem. With Binance Bridge, it becomes very easy to use on Binance Chain with Binance Smart Chain and cross-chain liquidity.
How does the Binance Bridge work?
Wrapping up in the Binance Chain version is going to be quite simple to tokenize or coin. Binance Bridge has some services using which you can easily convert crypto assets between Binance Smart Chain and Binance Chain. For example, if USDT is transferred via Ethereum to Binance Smart Chain, cross-chain canto conversion will be supported via Binance Bridge BEP-20 and Binance BEP-2 as Ethereum ERC-20. You have to note that these wrapped coins are fully supported with tokens on public and real coin addresses. Binance Bridge supports TRC-20 and ERC-20 cross-chain transfers. You probably know that ERC-20 has become a popular token standard on ETH and on the other hand TRC-20 has become a common standard for TRON networks as well.
Also Read: How is Bitcoin Creating Financial Literacy?
The Future of Binance Bridge
Binance Bridge is like a technology revolution service, which is used to add cross-protocol compatibility with the blockchain. Now one can easily convert tokens and coins from one protocol to another and it is very easy to use which you can use on Binance Smart Chain and Binance Chain. Binance-Bridge is planning to increase the cross-chain liquidity with the blockchain. Supported tokens are kind of a topic of concern for you as well as the protocol and coins that Binance-Bridge may support in the future.
Closing Thoughts
Binance-Bridge could be an important tool to further enhance cross-compatibility in the blockchain space. Anyone using Binance Smart Chain and Binance Chain can invest in tokens and coins very easily. The number of tokens may increase over time if this happens giving better access to more liquidity on the Binance smart chain. Binance-Bridge is a piece of a larger project by which Binance aims to increase cross-chain liquidity in the blockchains.
