Binance announced the launch of a new system of interaction between blockchains and centralized exchanges. The new application was called Bridge 2.
According to a statement, Bridge 2.0 allows customers to quickly and securely send assets from any blockchain to BNB Chain, the exchange’s blockchain ecosystem.
“Binance users can now connect a variety of unlisted tokens to the BNB Smart Chain as B-Tokens. Bridged tokens listed on Binance will be stored in the Funding Wallet or Spot. In the meantime, unlisted bridged tokens will be transferred to the Funding Wallet.”
According to Binance, even some tokens not listed on the exchange – but supported by Bridge 2.0 – can be accessed between the native blockchains and BNB Chain via deposit and withdrawal functions.
Essentially, the service allows investors to “freeze” tokens on their original blockchains and create functionally identical “copies” on Binance’s BNB Chain. Thus, users can transact their digital assets outside of their native networks.
Tokens “on the Bridge” can always be reverted back to their native networks, burning their “copies” on BNB Chain and “unfreezing” the original assets.
This is done through an automated B-Token circulation control system on Binance Bridge 2.0.
“Binance will not hold a surplus of tokens in this system, except for a buffer size on hot wallets,” the exchange explained.
Finally, the exchange highlighted that when users want to switch from the tokens that are in the Bridge back to the original tokens, they can deposit the system tokens on Binance and withdraw the original tokens.
“Excess tokens will be swept into the cold wallet and burned automatically,” the exchange said.
Binance also recently announced the launch of EduFi – a way for users to earn cryptocurrencies as they complete educational tasks.