USDCoin is a BEP20 variety of this cryptocurrency created on the Binance Smart Chain network, which is the native blockchain of the BNB token. As evident from the name, it’s maintained by the Binance Company — a giant provider of crypto brokerage services and a big decentralized research project.
It’s basically a subset of USDC that’s compatible with the Binance Chain. Considering the vast potential of that network, being able to use this stablecoin in this place is hugely beneficial. It doesn’t just mean paying for services or fees, but also using it with dApps, DeFi solutions, wallets, and many different BNB projects.
USDC is one of the biggest stablecoins and among the most popular cryptocurrencies overall. It’s currently at over 26 billion dollars of market capitalization, and all of that is derived from actual USD held in a bank as collateral for these tokens. They are tied in value to the American dollar, which naturally creates some opportunity and benefits.
It can be used for a variety of purposes in this form. Its most distinguishing quality is its stable, unchanging value, which makes it very attractive in the highly volatile world of crypto. It can essentially enjoy all the technical benefits of being a cryptocurrency but without any market risk.
The value of USDC never changes: it’s always 1 to 1 with the American dollar, every token collateralized by an actual real-world dollar. That’s basically what a stablecoin is. The difference between USDC and an earlier stablecoin USDT is that it was originally meant for the Ethereum blockchain, although other versions, like USDC BEP20, were created later.
About BEP20 and BSC
BEP20 is the primary token standard found on the Binance Smart Chain (BSC). There are others, but this one is found among the overwhelming majority of coins issued on this blockchain, including the BNB itself.
Standards are basically all the principles that a coin should follow if it is to be used on a given blockchain. If it doesn’t follow the respective standard to the letter, it just won’t be compatible with the system. So, USDC BEP20 basically means a version of USDC that’s compatible with the Binance Chain. That brings a lot of opportunities.
Binance Chain is a relatively new addition, launched in 2017. It soon became a very prominent network in the decentralized web because of its key advantages:
- More TPS. ‘Transactions per second’ is a crucial parameter for blockchains. It basically estimates the number of operations a block can do on the network, which directly translates to performance. BSC has a rather high TPS count.
- Low fees. One of the primary points of complaint regarding the older Bitcoin ecosystem was the high fees. The high fees made it hard for people to grow their projects exponentially and also restricted some of the cooler possibilities for rich people. Binance addressed this issue head-on.
- Interoperability. The big thing about the Binance Chain is its increased compatibility with other networks. Various cross-chain bridges and gateways allow people to conduct data transfers between networks much easier. This advantage is virtually unique for Binance.
- Access to Binance products. There are plenty of Binance products you might want to get ahold of, including their exchange, their decentralized exchange (a different thing), various other Binance projects, and an ocean of projects made on BNB.
One could say a lot more things about Binance Smart Chain. For instance, it has the capability for smart contracts, which local developers use immensely. Its structure is also simple and user-friendly, meaning that you’ll likely have less trouble navigating this blockchain and developing on it than you would on even Ethereum.
This network’s potential for the development of decentralized solutions is extraordinary. There are now thousands of high-profile DEX, DeFi, dApp, and other projects that use the immense potential of local smart contracts. Moreover, thanks to many additional features, instruments, and layers, you can manage your projects much more deeply.
Also, if you have something brewing outside of BSC, it’s very easy to integrate your businesses through cross-chain bridges. That’s where USDC can help.
USDC on BSC
Stablecoins, as mentioned, always stay on the same level of value. You can think up a couple of applications for these stablecoins, but it’s excellent as fuel for your projects. It’s especially handy on BSC, specifically because of the inherent interoperability found on this network.
The idea is: if you use several solutions or own several projects on BSC and any network it’s compatible with, you can very easily power all your actions across these networks with USDC. If you want to move to another network, you can just do that, simply changing the standard or not even doing that if the compatibility is just that high.
The additional benefit of doing this with USDC as opposed to BNB, for instance, is the stable value of this token. Moreover, it’s accepted in many different projects all over the crypto world, which increases the convenience immensely. USDC and BSC are just a very good combination, overall.
USDC BEP20 is an incredibly useful variety of this token. Since it’s completely compatible with the BSC blockchain and has all the same rights other BEP20 tokens would have, it can be used with any of the local features. What you do is, basically, combine the strengths of USDC with the strengths of BSC. Both are numerous.
It doesn’t really mean that you should forfeit all your other cryptocurrencies and just use USDC while on this blockchain. Different coins have different characteristics. There are other tokens that might benefit you in a different way. However, USDC is good overall and particularly useful for DeFi.