


Binance's BTCB has provided a pathway for Bitcoin owners to have access to the benefits of BSC. With BTCB, developers can now incorporate Bitcoin into their DApp design.
Introduction to Cryptos
Without a doubt, Bitcoin is the flagship of cryptocurrencies. To start with, It was the first cryptocurrency created. In terms of adoption, no other crypto asset has as much universal adoption as Bitcoin. Market history shows that the price movement of Bitcoin pulls that of other cryptos in whichever direction it goes. Other parameters such as market capitalization and daily volume of trade etc., all point to the fact that Bitcoin is the dominant cryptocurrency in many ways. Yet, for all its dominance and utility, Bitcoin still has limitations.
The application of blockchain technology has evolved beyond the Bitcoin blockchain. Right now, the decentralized finance ecosystem is experiencing rapid growth. Much of Decentralized Finance (DeFi) activity currently takes place in other blockchains other than Bitcoin's. Though bitcoin has massive liquidity, DeFi could not benefit much from it. This was due to the lack of interoperability between blockchains. Tokenized Bitcoin was developed to make bitcoin's massive liquidity available to DeFi users.
What is Tokenized Bitcoin?

Simply put, tokenized bitcoin is an alternative bitcoin designed to function in another blockchain environment. It is issued on a particular blockchain with its value pegged to actual bitcoin value.
Tokenized bitcoin makes it possible to transfer liquidity from Bitcoin to another blockchain platform. This is especially useful for users of decentralized applications. Tokenized bitcoin is a replica of bitcoin's real value: it is pegged to the value of bitcoin 1:1. It is also interchangeable; you can easily convert the tokenized equivalent to the actual bitcoin.
BNB Chain's Tokenized Bitcoin
Binance has introduced its version of tokenized Bitcoin to the BNB Chain (BSC) network. The token is called the BTCB. The innovation is in keeping with Binance's philosophy of improving the experience of its users. There are many applications on BSC that are not found on Bitcoin's native blockchain. BTCB was introduced to help BSC users maximize the benefits of the BSC. Some of these benefits include faster transaction speeds, low gas fees etc.
How Does Binance's Tokenized Bitcoin Work?
Bitcoin is tokenized through the wrapping technique. Wrapping involves locking an asset in a smart contract and minting counterpart tokens for use in another blockchain. When it is desired to revert back, the counterpart tokens are burned and the locked tokens released. Wrapping enables the cross-chain transfer of liquidity across different blockchains.
There are two approaches to wrapping. The first one is custodial, in which case a trusted central authority manages the minting and burning process. The second case is an automated on-chain process that does not require a trusted custodian's oversight.
Binance provides BTCB using the custodial approach. It is worth mentioning that the burden of risk is borne by Binance, which is better for a user. The other alternative is the non-custodial approach which would put the user's risk or smart-contract error solely on the user's shoulders.

BTCB is issued through Binance's Bridge service. This service enables a user to wrap and unwrap tokens from one blockchain to another. The whole process is not complicated and is done through an easy-to-use interface.
Minting BTCB is a straightforward process. You first deposit the amount of Bitcoin to Binance. Binance will then keep your deposited BTC in a multi-signature cold storage wallet and issue you an equivalent amount of BTCB. Thereafter, you can make use of your BTCB on supporting BSC DeFi platforms. Here is a guide on how to use the Binance Bridge.
Uses of BTCB
- Bitcoin is the most liquid cryptocurrency as of today. It will likely remain so for a long time into the future. The BNB Chain is also the fastest-growing ecosystem for decentralized applications. BTCB will make it possible for developers to integrate Bitcoin into their smart contracts.
- You can hold Bitcoin and still make money at the same time. Many DeFi platforms such as Beefy, ForTube etc. offer yield-farming and lending services that support BTCB. Most people who hold Bitcoins would want to hold it to sell later after the value appreciates. They can put it in a vault, access loans, or yield-farm on the platforms above and earn some interest or new tokens while holding.
- The BNB Chain has fast transaction time and low gas fees as core strengths. With BTCB, you can carry out trades on BSC platforms such as Pancakeswap, Bakeryswap etc. Such transactions are confirmed much faster on BSC than Bitcoin blockchain. You also pay far lesser gas fees. Thus BTCB gives users one more route to access the low fees and fast speed of BNB Chain.

Final Words on Tokenized Bitcoin
The year 2020 saw Bitcoin surpass its all-time high, raising BTC's liquidity profile further. The world is moving fast towards full-scale decentralized finance, and BTC's liquidity must flow through DeFi. Binance's BTCB has provided a pathway for Bitcoin owners to have access to the benefits of BSC. With BTCB, developers can now incorporate Bitcoin into their DApp design. Overall, holders of BTC can have the best of both worlds: hold BTC to sell when the value appreciates while simultaneously profiting from DeFi platforms during the holding time.
Don’t forget to download the BSC News mobile application on iOS and Android to keep up with all the latest news for BNB Chain and crypto! Check out the DeFi Direct Linktree for all the access links!
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This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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Related News

Explore the comparative analysis between Bitcoin and Pi Network, two prominent networks shaping the future of decentralized finance. Uncover their differences in mining, scalability, market acceptance, and community dynamics.
TL;DR:
- Bitcoin and Pi Network are compared in terms of their foundational principles, mining methods, scalability, market acceptance, and community dynamics.
- Bitcoin operates as a decentralized digital currency, while Pi Network focuses on accessible mining through mobile devices.
- Bitcoin mining relies on computational power for security, while Pi Network utilizes a mobile mining approach with lower energy consumption.
- Bitcoin faces scalability challenges, while Pi Network needs to address scalability as it aims for widespread adoption. Market acceptance and value differ between the two networks.
Cryptocurrencies have opened new avenues for financial transactions, decentralized networks, and innovative technologies. Bitcoin, the first and most well-known digital asset, has paved the way for a digital revolution.
However, newer players like Pi Network are entering the market with unique propositions and aiming to challenge the status quo. This article will conduct a comparative analysis of Pi Network and the Bitcoin network to understand their similarities, differences, and potential implications for the future of Decentralized Finance (DeFi).
Foundational Principles
Bitcoin, introduced in 2009 by the pseudonymous Satoshi Nakamoto, was designed to be a decentralized digital currency that operates on a peer-to-peer network. Its foundational principles include security, transparency, and scarcity. Bitcoin's blockchain technology enables secure transactions without intermediaries or central authorities.
Pi Network, on the other hand, was founded by a team of Stanford graduates in 2019. It creates a digital currency, $PI, that can be mined using mobile devices, making it accessible to the masses.
Mining and Network Security
Both Pi Network and Bitcoin utilize mining as a fundamental process, but they employ different approaches. Bitcoin mining involves solving complex mathematical problems through computational power to validate transactions and add new blocks to the blockchain. This process ensures network security and prevents double-spending.
In contrast, Pi Network's mobile mining aims to provide an alternative approach that allows users to mine using their smartphones. It utilizes a consensus algorithm that doesn't require massive computational power or energy consumption. However, it's important to note that Pi Network is still in the enclosed mainnet phase, and the security and decentralization of its network are not as established as Bitcoin's.
Scalability and Transaction Speed
Scalability has been a significant challenge for Bitcoin. The network can handle a limited number of transactions per second, leading to congestion during peak periods and higher transaction fees. Various solutions, such as the Lightning Network, have been proposed to address these scalability issues and enhance transaction speed.
Pi Network, a relatively new project, has not yet faced the same scalability challenges as Bitcoin. However, as Pi Network aims to achieve widespread adoption, it must address scalability concerns to support a growing number of transactions and users when the open mainnet goes live.
Market Acceptance and Value
Bitcoin has gained widespread acceptance and recognition as a digital asset and a medium of exchange. It has attracted institutional investors, retail traders, and merchants worldwide. Bitcoin's value is determined by market demand, and its price has experienced significant volatility over the years.
In comparison, Pi Network’s enclosed mainnet phase means that its native currency has not yet been listed on major exchanges. Its value and market dynamics are not freely tradable or well-established. Pi Network's success in gaining market acceptance and establishing value will depend on user adoption, utility, and listing on reputable exchanges.
Community and Ecosystem
Bitcoin has a robust and active community of developers, enthusiasts, and supporters. Its open-source nature has allowed for the development of various applications, platforms, and services built on top of the Bitcoin network. The Bitcoin community has played a vital role in its growth and adoption.
Pi Network, as a newer project, is also building its community of users and supporters. It has attracted many early adopters enthusiastic about its vision of accessible mining. The Pi Network team actively engages with the community, providing updates and addressing concerns. Building a solid and engaged community will be crucial for Pi Network's success and future development.
Conclusion
The comparative analysis between Pi Network and the Bitcoin network highlights their differences in approach, mining methods, scarcity, scalability, market acceptance, and community dynamics. Bitcoin, as the pioneer in the cryptocurrency space, has established itself as a widely recognized and accepted digital asset. Its decentralized nature, security, and growing ecosystem contribute to its value and market dominance.
Pi Network, on the other hand, is a newer project that aims to bring mining to the masses through mobile devices. It introduces a unique consensus algorithm and focuses on accessibility and user-friendliness. However, Pi Network is still in its early stages, and its network security, scalability, and market acceptance are yet to be fully established.
Both Pi Network and the Bitcoin network contribute to the continuous innovation and evolution of decentralized finance. While Bitcoin remains the leader in market acceptance, value, and ecosystem development, Pi Network's vision of accessible mining and user-friendly approach could have implications for making cryptocurrencies more inclusive and widespread.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $1500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
This is a paid press release, BSC.News does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. The project team has purchased this advertisement article for $2500. Readers should do their own research before taking any actions related to the company. BSC.News is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the press release.
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