Binance upgrades its cross-chain protocol v1 to Binance Bridge 2.0

Binance upgrades its cross-chain protocol v1 to Binance Bridge 2.0
Binance has released the second version of its cross-chain protocol dubbed Binance Bridge 2.0. This will connect BNB Chain, its flagship layer 1 blockchain, to other networks, and also help integrate DeFi and CeFi.
Binance upgrades its cross-chain protocol v1 to Binance Bridge 2.0
Binance upgrades its cross-chain protocol v1 to Binance Bridge 2.0

Binance Bridge 2.0 will support more blockchains, provide a better user experience, and reduce maintenance expenses, according to the company.

Through the Binance app, users will be able to access both traditional centralized finance (CeFi) and decentralized finance (DeFi). Financial transactions carried out on the blockchain without the use of intermediaries are referred to as decentralized finance.

Binance Bridge 2.0

Users can use the bridge to put 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 effectively mirroring them.

Unlisted tokens will be saved in Funding Wallets, whereas tokens that are listed on Binance’s crypto market will be saved in Funding Wallets.

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.

Binance renamed its Layer 1 network BNB Chain in February as part of its plan to become a major blockchain infrastructure provider. Because it allows users and developers to connect other tokens into Binance’s ecosystem, the bridge is an important aspect of this initiative.


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