Experience BTCB – Bitcoin on Binance Smart Chain

829e2699-a031-49a1-8fec-9ed275d74a16.png

https://www.binance.com/en/blog/421499824684901264/Experience-BTCB–Bitcoin-on-Binance-Smart-Chain

As the public awareness and adoption of Bitcoin increases, masses of new users are beginning to enter the market. Millions of new bitcoin users are joining the ecosystem on the news of Bitcoin breaching $18,000, and the all-time high market cap of $336 billion only confirms this. With the increasing number of bitcoin users comes a variety of new expectations and use cases for Bitcoin.

The first principle of Binance is always to place our users’ interests first. We intend to continue to honor this value – innovating the ecosystem to provide opportunities for our diverse community to achieve the freedom of money.
Freedom of money goes hand in hand with Bitcoin, and we believe that to achieve this ultimate goal, it’s required to explore all the potential use cases of Bitcoin.

Introducing the BTCB, 1:1 wrapped Bitcoin on Binance Smart Chain.

BTCB is a BEP2/BEP20 asset wrapped (pegged) on Binance Chain/Binance Smart Chain with a 1:1 peg to BTC locked on the Bitcoin blockchain. BTCB is operated on a centralized and trust-based model. The 1:1 peg means that the amount of wrapped BTCB is equal to the amount of BTC locked in a public address. The centralized and trust-based model implies that the issuer of the wrapped BTCB tokens is Binance. Our job is to ensure the impenetrable security of your funds and transparency. 

The transparency is ensured through the Proof of Assets webpage, where you can verify the current supply for all locked and issued assets on the public blockchain.  The amount of locked BTC may not be exactly the same as the wrapped BTC because this audit data is not updating in real-time, but instead, it’s processed weekly.

What are the main advantages of BTCB?

The main advantage of BTCB to regular users is clearly in the ability to hold BTC while leveraging the DeFi ecosystem via BTCB to increase their gains. Without BTCB, you’d have to sell your BTC, miss the potential price gains, and purchase DeFi assets to participate in the DeFi ecosystem and interact with dApps. 

With BTCB, you can do all of this without selling your BTC and missing the potential BTC price gains. Your BTC remains locked, and you can redeem your BTCB and claim the locked BTC at any time.

Thanks to the technical advantages of Binance Smart Chain, we can provide Bitcoin and DeFi users with additional use cases, fulfilling the expectations and requirements of the community.

What is the use case of BTCB?

BTCB is an ideal asset for everyone who holds some Bitcoin and wants to do more with it. 

The simple and straightforward process allows you to use BTCB and interact with DeFi. A basic understanding of cryptocurrencies, wallets, and blockchain will get you through the process in no time. 

BTCB is great for:

  • Individual bitcoin hodlers and Bitcoin Miners can leverage their BTC holdings and profit on price gains without selling while participating in DeFi on BSC with the wrapped BTC tokens.
  • Institutions or professional traders can use BTCB to maximize their profits and optimize operational costs.
  • BTCB can be used with DeFi dApps, such as: 
    • Stablecoins: QIAN and Venus (a model pioneered by MakerDAO on Ethereum)
    • Lending: CREAM, ForTube
    • Yield Farming: Beefy, Fry.world
    • Liquidity Mining: Bakery, Pancake, BurgerSwap, Spartan
    • And more…

With benefits such as low fees and high transaction speed, an ecosystem of DeFi Legos such as Trader and Liquidity Provider (Market making), BTCB is an attractive asset to all users. 

How BTCB works?

Just like any other wrapped BToken (Binance Token), you can withdraw BTCB from your wallet on Binance.com or through the Binance Bridge, a decentralized system for cross-chain transfers across the Bitcoin blockchain and Binance Smart Chain.

The Binance Bridge allows you to peg-in and peg-out different native tokens, Bitcoin in the case of BTCB, for the same amount of pegged tokens on Binance Chain and Binance Smart Chain.

First, you need to deposit your BTC to Binance. Then you claim the BTCB, and from there, you’re free to use it with any dApp or DeFi platform that supports wrapped BTokens.
Some of the most popular wallets, including Binance Chain Wallet, Trust Wallet, BitKeep, SafePal, TokenPoket, and MathWallet, fully support BTCB and other BTokens. Some Wallets also provide dedicated landing pages on BTCB dApps like MathWallet and SafePal.

What is the future of wrapped BTC?

The future of wrapped BTokens lies in the evolution and development of the existing Binance Smart Chain ecosystem and DeFi adoption. Currently, there’s more than 2,000 BTC circulated on Binance Smart Chain, and the growing demand indicates promising growth.

For BTCB the future is clear; together with the community, we want to make it the biggest cross-chain wrapped token on Binance Bridge. We want to actively collaborate with the community to foster the achievement of a decentralized world and provide multiple secure and trusted choices of cross-chain infrastructures to enable cross liquidity for valuable assets like BTC. 

What are the risks of BTCB? Is it safe to use wrapped BTC?

DeFi is a very new part of the cryptocurrency ecosystem, and it has a long way to go. Like in any other financial market, there are several different risks that DeFi users need to face every day. We previously published an excellent article where you can learn more about DeFi risks and how to spot a DeFi scam.

The BTCB-specific risks are the same as with any other wrapped tokens. The environment of wrapped tokens is not trustless and requires transparency and a trusted issuer. With Binance, you have a guarantee that our Security Team protects your investments with the latest security standards and practices. All funds locked in BTokens are also protected by our SAFU fund, while transparency is ensured through the Proof of Assets webpage

Get wrapped Bitcoin on BSC today! 

Try BTCB.

Risk Warning: BTCB and other wrapped BTokens can be used in high-risk investments with increased volatility and risk of loss. We recommend you DYOR before using BTCB or any other DeFi products. Binance bears no responsibility for losses or damages incurred by third parties and service providers.

Share this post

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    scroll to top