Binance Bridge is an innovative approach targeting the issue of interoperability between the different blockchain networks, it also gives full exposure for those users who want to do yield farming.
If you haven’t learnt about Yield farming you can refer to our previous blog on it, “Yield farming in a Defi: A new way to grow a Crypto?”, Now so far, we have also talked about the solutions in form of wrapped token. Which easily creates a tokenized version of a native coin that is transactable in different blockchains.
What is a Binance Bridge?
Binance bridge acts as a cross-chaining bridge for ERC-20 and TRC-20 like crypto tokens, however, the interoperability being its main aim, it helps to bridge several blockchain networks.
One of the most important things for a non-binance native user is that he is also eligible for using the Binance bridge tool, as the project has kept it open for every user who wants to transact through cross-chain transactions. If you are interested in bitcoin trading visit http:/blockchainjobz.com/
The native tokens can be converted into wrapped tokens or pegged tokens, which are disguised forms of them and can be easily swappable and exchangeable throughout the entire trading process.
How does a Binance Bridge work?
Now, how does the Binance Bridge work? This Bridge will first refer you to get connected through your desired digital wallet and then the following steps can be followed:
- Now enter the token or cryptocurrencies like ETH, USDT, LTC, XRP OR LINK, etc. whichever one you want to convert
- Now enter the name of their native Blockchain network: Ethereum, etc.
- Check for the minimum value of that token chosen, which gives you an overview of its conversion eligibility criteria.
- Fill in your destination address, the address where you want to receive your wrapped token after the conversion process.
- In some cases, you will be required to connect your destination network to your digital wallets. After doing all these enter the confirmation button and it will help confirm the transaction process.
- A metamask transaction will be processed and for a first-time transaction, you will be required to add the token contract address to get your converted tokens.
What are the features of a Binance Bridge?
Binance Bridge has performed and touched several areas of blockchain functioning, therefore you can have these awesome features of a Binance Bridge, which will help you to explore it more:
- Peg-in-Peg-out: When you are converting your native coin into a wrapped token is called peg in and when you are converting back from wrapped token to your native coin is called peg out.
- No transaction fees: Binance Bridge charges zero transaction fees for the transaction made through the medium and it is an open interface for the non-native users.
- Supports more than 60 cryptocurrencies: One of the most exciting features of the Binance Bridge is that it supports more than 60 worldwide popular crypto assets and currencies in its platform.
- Verifying Swap process: You can also verify the swap process of your token by simply clicking its history board provided in its interface.
- Cross-chain Compatibility: It also supports the cross-chain transaction which directly results in interoperability which is backed by native coins available on the public addresses.
Binance Bridge helps peg and unpeg the cryptocurrencies which directly increases the liquidity rate of the crypto markets, it also supports more than sixty cryptocurrencies throughout the world, only by selecting your desirable asset you can connect it to your chosen network!