What Is Bitcoin BEP2 (BTCB)?
Bitcoin BEP2 (BTCB) is a token on the Binance Chain. Each BTCB is 100% backed by a BTC reserve, with the price pegged to Bitcoin at 1 BTCB = 1 BTC. The reserved address for verification is publicly available to anyone at any time.
The Binance cryptocurrency exchange has published the reserved address to demonstrate the transparency of the Bitcoin BEP2 project and pique the interest of third parties who can freely check the contents of the Bitcoin pool and compare the data with the number of BTCB tokens issued. The project forms part of Binance’s endeavor to provide affordable trading opportunities for users of its decentralized exchange (DEX) – one of the primary services supported by Binance Chain.
Since its launch on April 18, 2019, Binance Chain has achieved good results regarding decentralization and interoperability in quite a short time. Binance Chain Evolution Proposal 2 (BEP2) was launched in June 2019, outlining technical features, rules, and management criteria that tokens must meet to function appropriately in the Binance Chain ecosystem.
Who Are the Founders of Bitcoin BEP2?
Changpeng Zhao (aka CZ in the crypto community) is the founder and CEO of Binance, which grew to become the world’s largest crypto exchange by daily traded volume within just 180 days. He is a graduate of McGill University in Montreal with a degree in computer science. As a coder who gained experience building high-frequency trading systems, he has concentrated on blockchain technology since 2013. He has completely immersed himself in the world of cryptocurrencies.
CZ is also CEO at BijieTech, which he founded in 2015. Before BijieTech, Zhao was the co-founder and CTO of OKCoin. Around the same time, he launched his own futures platform. He has also worked at Blockchain.info as the head of the technology department. In 2017, he officially launched Binance.
What Makes Bitcoin BEP2 (BTCB) Unique?
As Bitcoin is not strong when it comes to DeFi, developers are constantly looking for workarounds and struggle with obstacles that include high fees and a cumbersome process for creating smart contracts. Bitcoin BEP2 is a Bitcoin clone issued on Binance Chain. Therefore, its price is always as close to the underlying asset’s price – Bitcoin – and an actual BTC backs each BTCB.
Therefore, the pegged BTCB tokens are 100% backed by their reserve coin, Bitcoin. The advantages of using BTCB include:
- Since the release of BTCB, traders on Binance DEX have had the opportunity to trade BTC, even if the BTC is hosted on a completely different blockchain. BTCB provides Binance DEX traders with access to even more trading pairs, resulting in increased trading volumes.
- As the range of available assets has grown, so has liquidity, which is an advantage for exchange users.
- Binance has sealed a strong reputation over the years and has earned the trust of its users, so many users are willing to store their BTC on the platform to access BTCB.
- On Binance Chain, anyone can check the BTC reserves at any convenient time, which attests to the project’s high degree of transparency.
- Exchange representatives claim that while this approach is more centralized than atomic swaps, it is easier to understand and master for most traders.
- If developers wish to transfer their assets to Binance Chain, the platform actively promotes this and streamlines the process.
How Many Bitcoin BEP2 (BTCB) Coins Are There in Circulation?
Bitcoin BEP2 is a token that uses the BEP-2 technical standard (as outlined in Binance Chain Evolution Proposal 2), which is used to issue and sell tokens on Binance Chain. As you know, Binance Chain has its native token for paying fees, Binance Coin. Therefore, to transfer BEP2 tokens, you will have to hold BNB tokens in your wallet.
BTCB holders can exchange their coins for any other tokens on Binance DEX. In addition, token Holders can also exchange Bitcoin BEP2 for Bitcoin on the leading Binance exchange.
As of early July 2021, the currency has a circulating supply of 73 096 BTCB and a total supply of 80 501 BTCB.
How Is the Bitcoin BEP2 Network Secured?
Bitcoin BEP2 is based on the Binance Chain, which uses a combination of delegated proof-of-stake (DPoS) and practical Byzantine Fault Tolerance (PBT). These two consensus algorithms are a more ecological alternative to the energy-intensive proof-of-work (PoW) algorithm. On top of this, the Binance blockchain is also secured by the Tendermint Byzantine fault-tolerant (BFT) consensus mechanism.
Where Can You Buy Bitcoin BEP2 (BTCB)?
Bitcoin BEP2 is a decentralized digital asset that cannot be mined for profit. However, BEP2 tokens can be traded like other assets. To acquire BTCB, you’ll need to purchase it through crypto exchanges. These include Binance DEX, PancakeSwap (V2), MDEX, DODO
BSC, Demex, SwipeSwap, JulSwap, HitBTC, Venus, BEPSwap, OpenOcean, BakerySwap, and THORChain.