The world of cryptocurrencies is evolving at an incredible rate. Every day, innovation gives birth to entities that go on to shape the landscape. Without the right tools, some of these entities become extinct. However, some grow strong enough to define the times.
Right now, we are living in the age of Decentralized Finance (DeFi). New lands are rising out of the oceans. These are the latest digital ecosystems. And on these lands, new inhabitants called coins set up home. This is the story of Binance Smart Chain and its latest arrival, wrapped Bitcoin Vault (wBTCV).
Taking decenter stage
Decentralized Finance is one of the most significant trends in crypto. With Decentralized Apps (DApps), blockchain users get the same financial vehicles as traditional banking clients. These apps make use of smart contracts. They enable people to lend and borrow, trade, exchange and save with cryptocurrencies.
The land of opportunity
It is impossible to talk about DeFi without talking about Ethereum. Vitalik Buterin’s platform started the trend. And it has continued to dominate the space ever since.
But now, there is a new player on the scene. Binance Smart Chain (BSC) is one of the fastest growing platforms in the industry. Second only to Ethereum in the DeFi space, over USD 13 bln worth of digital assets were locked on BSC at the time of writing this article.
But what is Binance Smart Chain?
A map of the landscape
Binance Smart Chain is compatible with Ethereum Virtual Machine (EVM). This makes interactions between the two ecosystems simple and seamless. Interchangeable token standards make this possible: BEP-20 on Binance and ERC-20 on Ethereum.
The most notable landmarks
Block confirmation time on BSC is roughly three seconds. This is significantly quicker than Ethereum, which currently takes around 13.37 seconds. This means the platform is handling an average of 55-60 transactions per second. The average daily total comes out at over 3.5 million transactions. To give you an idea of how efficient this is, Ethereum is currently processing around 1.169 million transactions per day.
Transaction fees on BSC are less than 1 USD. This is many times cheaper than on Ethereum, where high network congestion affects transaction fees. On average, Ethereum users can expect to pay in the order of tens of US dollars per transaction USD 4.383.
BSC is part of the dual chain Binance ecosystem. This makes it possible to cross the Binance bridge, a portal that facilitates asset exchanges from one blockchain to another. Currently, the Binance bridge supports BSC, Binance Chain, Ethereum, Tron, and the OMNI network.
Various assets can be accessed on Binance Smart Chain. The coins include Bitcoin, Ethereum, USDT, XRP, ADA, and DOT. But that’s not all. Users can also access ERC-20 tokens locked in the form of BEP-20 tokens.
DeFi applications make it easy for users to exchange various digital assets. Swap apps like PancakeSwap and BurgerSwap are user-friendly apps that open many doors. Very quickly, users can begin earning trading fees by staking assets in liquidity pools. They can also earn new token rewards by providing liquidity in a practice known as yield farming. And if that’s not enough, users can even lend assets and earn interest or borrow by providing collateral.
Wrapped Bitcoin Vault
Bitcoin Vault (BTCV) is a project focused on delivering enhanced security solutions. But its primary concern is user experience. Like every other forward-thinking cryptocurrency, it wants to give its users access to every opportunity on the market. Right now, that means access to DeFi.
With this in mind, Bitcoin Vault has created a roadmap that outlines this specific goal, among many others. Scheduled to launch in 2021, wBTCV will be the project’s first wrapped token.
As a BEP-20 standard, the token will give BTCV users the chance to operate on Binance Smart Chain. Actually, it will enable BTCV to fully integrate with the DeFi ecosystem and let users interact with all the other tokens on BSC. This is the reason the token is being launched.
But there are other advantages for users. For example, crypto exchanges will be a thing of the past for holders of WBTCV. Say goodbye to multiple iterations of transactions, Know Your Customer (KYC) protocols, and account registration.
This union opens a gate that swings both ways. It brings all the advantages of DeFi to the BTCV community, but it also brings BTCV’s innovative spirit to BSC. A wide variety of DApps will create new decentralized finance opportunities for crypto enthusiasts worldwide.
And that, as they say, is a wrap.