Using Binance Smart Chain

In one of our previous articles, we talked about Uniswap’s decentralized exchange platform specifics and described the necessary steps for first-time users to make their first token exchange.

In today’s article, we will review the Binance Smart Chain, a new development in blockchain technology which can be used for inexpensive yet speedy ERC20 token transfers. In this article, we explain the difference between the token standards available on Binance. We also provide comprehensive guide on how to use the tools for inter-network transactions.

Binance Chain vs. Smart Chain

Binance Chain network

Binance Chain offers BEP2 standard tokens trading, a feature specifically developed for the Binance Chain network. BNB tokens were also transferred from the Ethereum network (ERC20) to the Binance Chain (BEP2) network. BTCB was the first token to appear after the launch of the blockchain and the exchange. BTCB is a Binance Chain token pegged to BTC. Later on, projects such as Mithril (MITH), Atomic Wallet (AWC), Enjin (ENJ), Aeron (ARN) and others migrated to the Binance network, making it attractive for new developers and users alike

A blockchain explorer is also available for Binance Chain, where users can find all the necessary information on the state of the network.

Binance Smart Chain network

Binance Chain and Binance Smart Chain networks interact with each other by means of cross-chain technology, which we have described in detail in one of our previous articles. Such an approach will enable mutual transfer of tokens between the networks, making the process of transactions faster and with lower fees

The internal BNB token functions across all networks and is used to pay commissions, pay for gas, make cross-chain transactions and for betting. The Binance Smart Chain, just like Binance Chain, has its own explorer.

Binance ecosystem access

Token standards

On the Binance exchange, one needs to select the token standard before making a transaction when depositing or withdrawing funds. It is worth noting that addresses in Binance Chain start with “bnb”, while BEP20 and ERC20 standard tokens have identical “0x” addresses. For this reason, be careful with transactions when choosing a preferred network. Also, be mindful when transferring ERC20 tokens over the Binance Smart Chain. Transaction data will be available in Binance Smart Chain explorer and not on the Ethereum one.

Creating a Binance Smart Chain wallet

  1. Download the Metamask app to your mobile device or add the browser extension on your desktop;
  2. Complete the wallet setup and save the backup phrases in a secured location. You will need these phrases if you should u need to restore the wallet;
  3. If you are using the browser extension, make sure to open the “Ethereum Core Network” tab and select “Custom RPC”. If you are using the mobile app, open your wallet settings, select “Networks,” and click “Add Network;”

4. Next, enter the data to add a new network. To connect your wallet to the Binance Smart Chain network, enter the parameters shown in the image below;

5. Click “Save”; this will make Binance Smart Chain available for connection to your wallet.

In addition to its connectivity with Metamask and Trust Wallet, the Smart Chain network can be used with the Binance Chain wallet also available as a browser extension.

Exchanging tokens

To connect a wallet:

  1. Click “Connect wallet” and select the wallet you want to connect. Depending on the chosen network, you will see a “Connected” icon indicating which network you are currently active on.
  2. Once you access the wallet, select the asset you want to transfer and then the network you want to transfer the asset to.Then, specify the amount of funds and a compatible wallet address, and click “Next’’.

3. Verify the validity of the information and click “Confirm a notification will pop in your Metamask Wallet browser which needs to be approved for the transaction to go through. You can always check the transaction details and their status in the “History” tab of the wallet.

Conclusion

Disclaimer: The contents of this article are not intended to be financial advice and should not be treated as such. 3commas and its authors do not take any responsibility for your profits or losses after you read this article. The article has been presented to provide readers with general information. There is only personal experience described herein. The user must do their own independent research to make informed decisions regarding their crypto investments.

Trading blog. Tools, bots, strategies.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store