Binance, the world’s leading cryptocurrency exchange by trading volumes, has launched a new iteration of its blockchain interoperability service, dubbed Bridge 2.0, that allows users to access both decentralized (DeFi) and centralized (CeFi) finance systems directly from the platform’s app.
According to a press release shared with CryptoSlate today, Bridge 2.0 enables customers to “quickly and securely bridge assets from any blockchain to the BNB Chain,” the exchange’s blockchain ecosystem.
“Binance users can now bridge a variety of unlisted tokens onto the BNB Smart Chain as B-Tokens,” the announcement stated. “The bridged tokens that are listed on Binance will be stored in the Funding or Spot Wallet, while unlisted bridged tokens will be transferred to the Funding Wallet.”
Additionally, even some tokens that are not listed on Binance—but are supported by Bridge 2.0—can now be “bridged in” and “bridged out” between their native blockchains and BNB Chain via deposit and withdrawal functions.
Building crypto bridges
Essentially, the service allows crypto enthusiasts to “freeze” tokens on their original blockchains and create their functionally identical “copies” on Binance’s BNB Chain. As such, users can transact their digital assets outside of their native networks.
Naturally, “bridged” tokens can always be reverted back to their native networks by burning their “copies” on BNB Chain and “unfreezing” the original assets. This is done via “a brand new, automated B-Token circulation control system in Binance Bridge 2.0.”
“Binance will not maintain a surplus of ‘pegged’ tokens except for a buffer size in hot wallets,” the exchange explained. “When users want to switch from the ‘pegged’ tokens back to the original tokens, they can deposit the ‘pegged’ tokens into Binance and withdraw the original tokens. The excessive tokens will be swept to the cold wallet and burnt automatically.”
As CryptoSlate reported, Binance has also recently announced the launch of EduFi—a brand new way for users to earn crypto for learning as they complete educational tasks.