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Binance Bridge Review 2024: Is It the Best Cross-Chain Bridge?
Swen Keller
- URL: https://www.bnbchain.org/en/bnb-chain-bridges
- 2020 (Binance Bridge 2.0 launched in 2022)
- Native Token: BNB (Binance Coin)
- Supported Assets: 35 cryptocurrencies including USDC, USDT, Ethereum, and Bitcoin
- Supported Networks: BEP2 (BNB Beacon) Chain, BEP20 BNB Smart Chain (BSC), ERC20 (Ethereum Network), TRC20 (TRON Network), EOS (Enterprise Operation System Network), BTC (Bitcoin Network), and BTC (SegWit) (Native Segwite)
- Fees: 0.1%
Binance Bridge Review: Our Take
Binance Bridge offers a straight-forward solution to cross-chain transactions and stands out for unlocking interoperability between ERC-20 and BEP-2/BEP-20 tokens, which enables users to make transfers more efficient by cutting down on fees while maintaining the efficiency of blockchains.
However, it faces limitations such as limited supported decentralized wallets (only 2) and it isn’t available to users in the United States.
What is Binance Bridge and How Does it Work?
Binance Bridge provides access to cross-chain liquidity for the Binance Smart Chain and Binance Chain decentralized applications and brings assets like USDT and Ethereum to the Binance Chain ecosystem.
Using “Peg-in” and “Peg-out” the bridge service enables users to transfer digital assets in and out of multiple blockchains.
The Peg-in method allows users to exchange native assets for the equivalent of pegged tokens on the Binance Smart Chain or Binance Chain. And Peg-out allows users to swap pegged tokens for native assets.
Pros
- Low trading fees
- Supports bridging of ERC-20 and BEP20 tokens
- Easy to use
- Compatible with Ethereum Virtual Machine
Cons
- Low selection of DeFi wallets
- Regional availability payment problems
Unique Features
Pegging
The Peg feature allows users to Peg-in and Peg-out to bridge assets in and out of different blockchains.
Instead of transacting with high network fees on Ethereum, users can transact on the Binance Smart Chain network, and then peg assets back to the Ethereum network when needed.
The Peg-in method allows users to exchange native tokens for the equivalent amount of the pegged tokens in the Binance Smart Chain or Binance Chain. Peg-out, on the other hand, allows users to exchange the pegged tokens for native tokens.
The process of converting these crypto assets into wrapped tokens of Binance Smart Chain and Binance Chain is known as Pegging.
To peg assets in and out of the Binance Smart Chain, you have to connect Binance Bridge with MetaMask or Binance Chain wallet.
Once this is done, you can peg the token by doing the following:
Connect your MetaMask wallet using the ” Connect Wallet” button at the top right corner of the page.
Once your MetaMask wallet has been connected, choose the asset you wish to transfer into the Binance Smart Chain and the direction of transfer.
Next, enter the amount you wish to transfer
Choose the destination wallet address and click “Next” to verify your transaction.
You will be given a deposit address to deposit the tokens into. And you will be charged a network fee for the deposit. Ensure you have enough funds to cover the network fee.
After the deposit has been made you can verify the status of the transfer on the blockchain.
Once your deposit is received, the bridge will process your transfer.
Here are a few things to note about pegging tokens on the Bridge. First, to receive a personal address for depositing, you need to send a request that specifies the native chain you want to convert from and the number of coins.
Also, the generated address is active for a specific time frame.
For the deposited tokens to get to your Binance Chain or Binance Smart Chain address, the tokens must be deposited within the set time frame.
All tokens are locked by the bridge after the transaction.
Cryptocurrencies Available on Binance Bridge
The Binance Bridge currently supports 35 cryptocurrencies.
Users can deposit the tokens on existing supported networks and withdraw the corresponding BEP20 tokens
Supported tokens include USDT, USDC, Ethereum, The Sandbox (SAND), ApeCoin (APE), JasmyCoin (JASMY), Decentraland (MANA), VeChain (VET), ConstitutionDAO (PEOPLE), MovieBloc (MBL), LooksRare (LOOKS), and Dogelon Mars (ELON).
It also allows users to bridge tokens that are not listed (unlisted tokens) on the Binance exchange to BNB Smart Chain as wrapped BTokens. These unlisted bridged tokens can be stored in a self-custody wallet on the Binance app.
That said, Binance Bridge’s cross-chain functionality facilitates the transformation of tokens between standards including ERC-20 and TRC-20 to BEP-2 or BEP-20.
Networks Available on Binance Bridge
Binance Bridge combines Ethereum, Binance Chain, and Binance Smart Chain in one network.
That said, the Binance Bridge supports the following networks
- BEP2 – BNB Beacon Chain
- BEP20 – BNB Smart Chain (BSC)
- ERC20 – Ethereum Network
- TRC20 – TRON Network
- EOS – Enterprise Operation System Network
- BTC – Bitcoin Network
- BTC (SegWit) – Native Segwite (bech32)
While the Bridge is yet to directly support Polygon, users can transfer their Polygon assets by leveraging xPollinate.
Fees
The Binance Bridge charges 0.1% of the transaction amount as fees per cross-chain transaction.
You will also have to pay dynamic gas fees where applicable.
Is the Binance Bridge Safe?
The Binance Bridge is a safe bridge that is secured using the same security standards of the BNB Smart Chain ecosystem.
Drawing upon our firsthand experience with this crypto bridge, we noticed that transactions can only be completed using a Binance account. Also, all selected unlisted tokens can be stored in a new self-custody wallet on the Binance app without creating third-party wallets
This means that all transactions are completed without any third-party involvement. This increases the security of the bridge and your private keys and also reduces the risk of security breaches.
That said, on 7th October 2022, the Bridge was hacked due to a flaw in the IAVL Merkle Proof verification system.
The hacker was about to steal 2 million BNB worth about $570m. In response to the exploit, Binance paused the system for hours and introduced a blacklist mechanism.
Operations were resumed on the Binance Smart Chain after a software update that froze the hacker’s account was released. The attacker was “only” able to take about $100 million because the majority of the stolen tokens could not be transferred after the BNB Chain was suspended.
Staking Rewards/ Liquidity Provider Yields
Binance Bridge offers staking rewards such as trading fee discounts for users who stake the Binance Coin.
Binance Bridge Native Token
BNB or Binance Coin is the native token of the Binance Bridge and Binance ecosystem at large.
The token offers discounts on trading fees when staked.
Things We Do Not Like about Binance Bridge
The primary problem with the Binance Bridge is accessibility and limited decentralized wallet support.
Users in the United States, for example, cannot transfer crypto assets on the cross-chain bridge service.
Final Thoughts
Binance Bridge makes crypto transactions a lot more efficient by enabling users to take advantage of the positives of blockchain networks like Ethereum. You can transfer crypto assets across blockchains without having to pay the high fees associated with the network.
However, it offers limited third-party wallets for connection to the platform, restricting the types of users who can use the protocol.
Binance bridge has lots to offer, but so do others. Take a look at our Hop Protocol Breakdown for a fresh look at another.
FAQ
Most frequent questions and answers
You can make $100 daily on Binance by learning how to trade in the spot market or using margin and then executing trades every day. However, be aware that trading, and specifically margin trading, can be very risky.
Yes, Binance Bridge US is not available in the United States. US residents cannot transfer crypto assets on the bridge.
No, US citizens cannot trade on Binance but are pointed to the much smaller and restricted Binance US.
Most cross-chain transactions are completed instantly but some may take up to 20 minutes.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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