Bitcoin BEP20 (BTCB) is a bitcoin on the BNB Chain network
BTCB is a BEP20 standard token, a "wrapped" bitcoin on the BNB Chain blockchain network with a 1:1 peg to the original BTC. The pegging implies that the number of BTCBs in circulation equals the number of BTCs blocked at the public address. The issuer of the wrapped BTC is the Binance exchange. It is responsible for the safety of funds and the transparency of transactions.
By visiting the page https://www.binance.com/en/collateral-btokens, you can see how secured the asset is. All data is public and verifiable. However, remember that they are updated once a week and not in real-time.
Key benefits of Bitcoin BEP20 (BTCB)
The value to users is the ability to use Bitcoin in decentralised applications on the BNB Chain. The original Bitcoin cannot be applied there due to technical limitations - they are entirely different blockchain networks.
At the same time, BTC is the most popular cryptocurrency, so owners have an understandable desire to trade or invest it in DeFi. That's where wrapped tokens come to the rescue.
It works as follows:
- Binance Bridge allows customers to deposit their bitcoins and receive equal pegged tokens in BNB Chain.
- First, you need to deposit BTC on Binance. Then - claim the rights to BTCB and then - freely use it with any DeFi platform supporting such BTokens.
- Any wrapped BToken can be withdrawn from Binance and stored on an external wallet.
Some popular wallets that support such assets are BNB Chain Wallet, Trust Wallet, TokenPoket, SafePal, and MathWallet.
Without using BTCB, users would have many more problems - they would have to sell BTC, miss out on potential increases in its price, and buy DeFi assets to interact with dApps. In this case, however, the BTC remains locked and can be claimed anytime.
Uses of BTCB BEP20
BTCB is best suited for:
- Profiting simultaneously from BTC price growth and participation in decentralised finance (e.g. liquidity supply).
- Companies can use BTCB to maximise profits and optimise operating costs.
- Value transfer - transactions are speedy and with minimal fees, more favourable than the original Bitcoin blockchain.
Wrapped BTokens will evolve with the BNB Chain ecosystem and the introduction of DeFi. So far, the demand for this asset is only growing. However, the risks associated with DeFi should be considered. At the same time, a particular security guarantee from Binance is present - bitcoins sent to the protocol are safe.
