Have you ever been frustrated that you are unable to use or move your desired cryptocurrency token from the Binance Smart Chain (BSC) to another blockchain? This is a common downside in cryptocurrency and every crypto enthusiast would have encountered this difficulty once or twice during trading. To solve the issue of token incompatibility in the Binance Smart Chain (BSC), an alternative token with similar characteristics and financial value to the native cryptocurrency of the Binance chain was created.
The alternative cryptocurrency for the Binance Smart Chain (BSC) is the wrapped BNB or wBNB which is a tokenized version of the BNB.
Its financial value is pegged to the price of the BNB asset and can also be redeemed for it the original BNB token at any point.
In simpler terms, the wrapped BNB can be said to be a stablecoin that derives its value from the original token it is being wrapped from. The wrapped BNB was created to improve interoperability of the Binance Smart Chain (BSC) as the availability of distinct blockchains with different features impedes tokenized interaction and therefore limits cross-chain transactions.
BEP20, the standard version on the Binance Smart Chain that allows it to be used by other applications is used by the wrapped BNB to facilitate the cross-chain transfer.
The Binance Bridge is a cross-chain bridging development designed to improve interoperability between different blockchains by allowing users to convert any of their desired tokens into a wrapped token that will be used on the Binance Chain or Binance Smart Chain (BSC).
When using the Binance Bridge, wrapping and unwrapping a token is straightforward as it supports cross-chain transactions between Ethereum (ERC-20), Binance Chain (BEP-2), and Binance Smart Chain (BEP-20) tokens.
These transformed wrapped tokens are backed by the real token that is wrapped from and also have their unique public addresses.
During conversion, users are required to set their desired parameters which are the token’s original token type to the desired token type. The conversion time is short and only takes around a few or depends on the blockchain’s network confirmation time, the level of the network congestion, and present activity to execute the cross-chain transaction.
Concerning transaction fees, Binance Bridge does not charge any conversion fee and the only required gas fee is charged by the network of the token you are converting to.
Who are the founders of Wrapped BNB (wBNB)?
The founder of Wrapped BNB (wBNB) is Changpeng Zhao, a Chinese-Canadian who is also the Chief Executive Officer and founder of the Binance platform. He and his team consisting of multi-dimensional personalities developed the Wrapped BNB (wBNB).
To carry along their users, they have developed the best educational module to come up with several logical facts behind the concept of wBNB.
What is wrapped BNB (wBNB) used for?
Wrapped BNB serves as a bridge between blockchains, allowing users to migrate from one network to another whilst performing financial transactions.
The liquidity of other blockchain networks can be financially draining, hence wrapping the tokens into a lower liquidity blockchain and executing their desired transaction seamlessly.
Enjoy lower gas fees
High gas fees are one of the downsides of using cryptocurrency, with wrapped BNB tokens, the users can enjoy their transaction freely with little to no incurred gas fee.
Pledge their tokens for profits
With wrapped BNB, its holders can easily stake this token for profits as it has the same financial value as the normal BNB token.
Enjoy the benefits of the normal BNB token
Although the wBNB is wrapped, it does not negate the benefits of wanting a BNB token can be used. Holders can still use it to make transactions and even make purchases in stores that use them.
Enjoy Discount Coupon
You can still enjoy the regular discount Binance offers its BNB holders when you hold the wrapped BNB token, allowing you to partake in the growth of the community.
Increase capital efficiency for both centralized and decentralized exchanges.
What is the unique point of wrapped BNB (wBNB)?
The interoperability it offers makes wBNB a unique token as the development team of the Binance Smart Chain designed wrapped wBNB to be a more functional token than its predecessor as it can interact accurately with complex decentralized applications and obey several smart contracts to expand the functionality of the Binance Chain.
Its versatile use has allowed people to require wBNB to accomplish things rather than the unwrapped BNB token without undervaluing the latter and further continuing to expand the Binance ecosphere.
How many wrapped BNB coins are in circulation?
Wrapped BNB has a present circulation supply of 7.8 million wBNB tokens.
How is the wrapped BNB network secured?
The wrapped BNB is named as one of the most secured smart contracts in the world with no history of hacks or scam cases. It incorporates a highly complicated consensus system that ensures the safety of funds. There are also further plans to ensure that smart contact security is heightened.
This will also ensure it does not lose its value, extend the present capabilities, promotes transactions, and increase its scalability.
How do I buy wrapped BNB (wBNB)?
The wrapped BNB can be traded directly with other alternative tokens as ordinary users are not required to worry about the wrapping and unwrapping process. wBNB tokens can be easily purchased by the following steps.
* Open an account with the crypto trading platform.
* Transfer the specific amount of your fiat currency to your account.
* Wait for your deposit to be confirmed and buy wBNB through your trading account.
Which Cryptocurrency Wallet Supports wrapped BNB (wBNB)?
The PTPWallet platform supports many cryptocurrencies simultaneously, such as wrapped BNB (wBNB). Because of its vast use case, it has grown to become one of the most used platforms, as it serves as an exchange and an engine to discover other cryptocurrencies. Users can easily use PTPWallet as their wBNB wallet because it offers a simple interactive interface, making it easy for people to navigate its system.