Binance's BNB Chain Developers Plan to Merge Dual Structure Into Single Blockchain
Summary:
Binance's BNB Chain developers plan to consolidate the BNB Beacon Chain (BEP2) and BNB Smart Chain (BEP20) into a single blockchain. Users have been urged to shift their BEP2 and BEP8 assets to the BEP20 chain, which ensures a 1:1 preservation ratio. After the tentative deadline of April 2024, those who haven't transferred their assets can do so using a legacy feature, though it may involve a wait time of up to seven days post-fusion. Tokens issued without cross-chain support, however, will not be eligible for recovery after the fusion process.
Creators of BNB Chain from Binance are looking to consolidate the two-fold BNB Beacon Chain (BEP2) and BNB Smart Chain (BEP20) into a singular blockchain structure, as per an official statement released on January 8. Users are being firmly urged to shift their BEP2 and BEP8 (smaller BEP2 tokens) assets to the BEP20 chain, ensuring a 1:1 asset preservation. This relocation can be accomplished either through centralized and decentralized exchanges, or via the BNB Chain Wallet or other self-held wallets. An initial time frame for the BNB Chain Fusion has been tentatively set as April 2024. For users who fail to move their assets by this date, a legacy feature will still allow bridging. However, users should be prepared to wait up to a week to retrieve their BEP2 assets after the fusion, as the recovery feature lacks a user-interface and will only utilise a command line promptline. It was also cautioned by developers that if BEP2 tokens are issued without a cross-chain capability, they will not be eligible for recovery after the fusion: "Without cross-chain capability for these tokens ahead of the BNB Beacon Chain's deactivation, they will become irretrievably lost, with no means for recovery. Active engagement in this process is critical in safeguarding your assets." Binance released its native token, BNB, in July 2017. At present, BNB BEP2 serves as gas fees to facilitate ecosystem transactions, and BEP20 tokens maintain smart contract functionality, akin to ERC-20 tokens. "The Beacon Chain has become burdensome with the rapid evolution of BSC,” the developers acknowledged, highlighting how the current two-chain structure hinders development iteration due to constant bridging and leaves BNB open to security risks. Related: BNB Chain activity sees a surge, contributing to an 11% rally, but does BNB have the potential to break $300?
Published At
1/8/2024 8:50:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.