The industry is growing, and expectations heightening
Bitcoin has earned a position as a major 21st-century disruptive technology especially in the financial sector. Many users are joining the digital currency ecosystem due to its benefits to individuals, industries, and society in general. As the cryptocurrency industry grows, new expectations come up. The institutions in the industry are working hard to meet these expectations by developing new use cases of cryptocurrencies, especially Bitcoin. Binance, in June 2019, launched BTCB, which adds a new dimension to bitcoin usability.
What is BTCB?
BTCB is a crypto-pegged token on Binance Chain (BC)/Binance Smart Chain (BSC). The BEP2/BEP20 asset is a tokenized version of bitcoin. The token is wrapped with a 1:1 peg to BTC on the Bitcoin blockchain. The pegging ratio implies that BTCB is backed 100% by the reverse of the asset. The amount of pegged BTCB equals the amount of BTC locked in the Bitcoin blockchain. The token uses a consensus mechanism and rules designed for the Binance chain. It operates exclusively on ecosystems built Binance chain. To ensure security, Binance uses a centralized and trust-based model. They are the only issuer of BTC tokens.
Binance maintains transparency when using BTCB through the Proof of Assets webpage. The platform enables tracking and verification of current supply for all the assets (both locked and issued) on the public blockchain. The data on the website is updated weekly.
Understanding how BTCB works
You require a decentralized wallet that supports BTCB before you convert your BTC to BTCB. Once you have the tokens in your wallet, you can begin using them with any DeFi or dApp platform supporting wrapped Binance tokens. You can withdraw your tokens whenever you want through Binance Bridge. It is a decentralized application that provides access to cross-chain liquidity for Binance Chain. Binance Bridge allows you to transfer coins across Bitcoin blockchain and BSC. This platform enables you to peg in and peg out Bitcoin.
What are the benefits of BTCB?
The main advantage of crypto-pegged tokens is that it makes different tokens, which are not native to Binance Chain available on Binance DEX. Therefore, traders can enjoy high liquidity and trading volume.
As a regular user, BTCB enables you to hold your BTC while leveraging the DeFi ecosystem. Initially, you could not use your BTC to participate in the DeFi ecosystem. You were required to sell your BTC and buy DeFi assets to access services on DeFi platforms and dApps. With BTCB, you do not have to sell your BTC, hence no fear of missing the potential price gains. Your BTC remains locked, and you can redeem them at any time. This approach provides a higher degree of ease of use to traders.
BTCB also offers additional use cases for both BTC and DeFi users. This token is ideal for Stablecoins such as QIAN and Venus, Yield Farming such as Fry World and Beefy, and Lending services such as ForTube and CREAM. It also offers the benefits of low fees and faster transactions.
Is BTCB safe for use?
BTCB, like other wrapped coins, still uses a centralized approach. Therefore, its environment is not trustless hence calls for transparency and trust in the issuer. However, Binance is a security-focused DeFi institution. It boasts a highly skilled security team to protect the investors and other users of its products. The Proof of Asset webpage ensures transparency when dealing with BTCB while the SAFU fund protects the tokens. You can trust the token and its issuer.
What does the future look like for BTCB?
BTCB operated in the Binance Smart Chain ecosystem. Therefore, the future success of this Bitcoin-pegged token depends on the adoption and growth of the ecosystem. However, in itself, BTCB is a solution-oriented innovation that is hard to ignore. The utility and high liquidity it creates are already attracting many people, and the trend is likely to continue. BTCB will likely grow to the biggest cross-chain wrapped token on Binance Bridge.
Is it the right time to buy BTCB?
BTCB comes with many advantages that you may not want to miss. If you would like to extend the use case of your BTC to Binance DEX, then it is the right time to go for this token. Technical Analysis of Bitcoin BEP2 indicates that it is the right time to buy the crypto asset.
Where to buy BTCB
BTCB is available for purchase at Wsum.io exchange. The exchange enables easy and faster buying and selling of digital tokens. Follow a simple procedure to get your BTCB. Create an account with Wsum.io and then deposit funds through your wallet to complete the purchase. The exchange also enables you to sell your BTCB and get back your funds. Place a sell order and complete the process.
Now that you understand how BTCB works and how to get it, it is time to try it out. Simply join Wsum.io and buy your BTCB.