Bitcoin BEP2

Bitcoin BEP2 (BTCB) is a token issued on the Binance Chain. Every BTCB is 100% backed by a reserve of BTC, with its value pegged to Bitcoin at a ratio of 1 BTCB = 1 BTC. The address for this reserve is publicly accessible for verification at any time.

The Binance cryptocurrency exchange released the reserve address to show the transparency of the Bitcoin BEP2 project and to invite third parties to inspect the Bitcoin pool and compare it with the total BTCB tokens in circulation. This initiative is part of Binance’s effort to offer affordable trading options for users of its decentralized exchange (DEX), which is one of the key services on Binance Chain.

Since launching on April 18, 2019, Binance Chain has achieved strong results in decentralization and interoperability in a relatively short period. The Binance Chain Evolution Proposal 2 (BEP2) was introduced in June 2019, defining the technical features, rules, and management criteria that tokens must satisfy to function correctly within the Binance Chain ecosystem.

Changpeng Zhao, widely known as CZ within the cryptocurrency sector, serves as the founder and CEO of Binance. The platform expanded to become the globe’s largest crypto exchange by daily trading volume in only 180 days. Zhao holds a computer science degree from Montreal’s McGill University. Having developed high-frequency trading systems, he shifted his focus to blockchain technology in 2013 and fully dedicated himself to the crypto industry.

In addition to leading Binance, which he officially started in 2017, CZ is the CEO of BijieTech, a company he established in 2015. Before that venture, he co-founded OKCoin and acted as its CTO, while also launching his own futures platform. His professional background includes serving as the head of technology at Blockchain.info.

Bitcoin itself faces limitations in the DeFi sector, where developers often encounter hurdles such as steep fees and complex smart contract creation. To address this, Bitcoin BEP2 (BTCB) was launched on Binance Chain as a clone of Bitcoin. The value of BTCB tracks the price of the original Bitcoin as closely as possible, with every single BTCB token fully collateralized by one real BTC.

This 100% backing by Bitcoin reserves offers several benefits:

• Since BTCB became available, traders on Binance DEX can trade Bitcoin even though the actual asset resides on a different blockchain. This expands the number of trading pairs and boosts trading volume.
• The growing variety of assets has improved liquidity, which benefits exchange users.
• Binance has built a solid reputation and user trust over time, encouraging many to keep their BTC on the platform to utilize BTCB.
• The project maintains high transparency, allowing anyone to verify the Bitcoin reserves on Binance Chain at any time.
• Representatives from the exchange state that although this method is more centralized than atomic swaps, it is simpler for most traders to learn and use.
• The platform actively supports and simplifies the process for developers who want to move their assets to Binance Chain.

Bitcoin BEP2 (BTCB) is a token built on the BEP-2 technical standard, defined in Binance Chain Evolution Proposal 2, for issuing and selling assets on Binance Chain. Since Binance Coin (BNB) serves as the native fee token for this chain, you must hold BNB in your wallet to transfer BTCB.

Holders can swap BTCB for other tokens on Binance DEX or exchange it for Bitcoin on the main Binance exchange. As of early July 2021, the circulating supply stands at 73 096 BTCB, with a total supply of 80 501 BTCB.

Bitcoin BEP2 operates on Binance Chain, which relies on a mix of delegated proof-of-stake (DPoS) and practical Byzantine Fault Tolerance (pBFT). This pairing offers a far more eco-friendly option compared to the power-hungry proof-of-work (PoW) method. Additionally, the Tendermint byzantine fault tolerant (BFT) consensus mechanism helps secure the Binance blockchain.

Bitcoin BEP2 (BTCB) is a decentralized digital asset that cannot be profitably mined, but it can be traded similarly to other assets. To obtain BTCB, you must buy it via crypto exchanges. Available platforms include Binance DEX, PancakeSwap (V2), MDEX, DODO BSC, Demex, SwipeSwap, JulSwap, HitBTC, Venus, BEPSwap, OpenOcean, BakerySwap, and THORChain.