May 29, 2024
Binance's BNB Chains Set to Consolidate for Streamlined Operations
Bitcoin News

BNB Smart Chain to Merge: Crucial Steps for Binance Users

The creators behind Binance’s BNB Smart Chain aim to consolidate the dual BNB Beacon Chain (BEP-2) and BNB Smart Chain (BEP-20) structures into a unified blockchain. As per the announcement on Jan. 8, users are advised to transfer their BEP-2 and BEP-8 (mini BEP-2 tokens) to the BEP-20 chain, maintaining assets at a 1:1 ratio. This transfer is feasible through centralized and decentralized exchanges, the BNB Chain Wallet, and other self-custody wallets. The projected deadline for the BNB Chain Fusion is tentatively set for April 2024.

Individuals who don’t migrate their assets by the stipulated deadline can still do so afterward using a legacy feature. However, the recovery process for BEP-2 assets post-fusion may take up to seven days, devoid of a user interface and relying solely on a command-line prompt. Additionally, developers cautioned that BEP-2 tokens lacking cross-chain support wouldn’t be eligible for recovery after the fusion.

Failing to establish cross-chain functionality for these tokens before deactivating the BNB Beacon Chain will result in their irreversible loss, with no recovery possible. Active participation in this process is crucial to safeguarding your assets.

Binance introduced its native token, BNB, in July 2017. Presently, BNB BEP-2 serves as gas fees for ecosystem transactions, whereas BEP-20 tokens possess smart contract capabilities akin to those of ERC-20 tokens.

“Given the rapid evolution of BSC, the Beacon Chain has become cumbersome,” developers explained, highlighting that the existing dual-chain setup hampers development iteration due to constant bridging requirements and exposes BNB to security risks.

Image by pixabay

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