For a long time, Binance has been promoting the adoption of one of the main products of its ecosystem. We refer to Binance Chain and the BEP-2 tokens, with which it intends to compete with token emission protocols such as Ethereum’s ERC-20. However, now in an attempt to massify the use of its Immediate Bitcoin, the exchange has launched a new protocol. So today we will explain what Binance’s BEP8 protocol is.
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Binance Chain and BEP-2
One of the most interesting features of the Blockchain technology, is that it allows decentralized creation within its infrastructure. That is, once there is a chain of blocks like the Ethereum.
Other creators can design and launch their own products within it. Issuing tokens that, in exchange for a small fee, take advantage of the technical capabilities and security of the Ethereum Blockchain or other cryptomonics.
These tokens acquire different names, according to the blockchain in which they were issued. Depending on the set of technical rules that make up the protocol from which these tokens will be issued. Until now, the Ethereum protocol has been the most popular of all. Although there are other protocols in different Blockchains such as Tron’s TRC-20.
In this last case, Binance has been promoting the use of its own Blockchain, Binance Chain, for the emission of new tokens. These work under a protocol known as BEP-2. Which allows developers to create projects based on Blockchain, using Binance’s infrastructure, and launching their own tokens in the block chain.
However, issuing BEP-2 tokens in Binance Chain is not as simple as you might expect. Therefore, and in an attempt to massify the use of its Blockchain, while supporting creators who do not have the resources for a traditional BEP-2 launch. Binance has launched a new protocol known as BEP8.
What is Binance’s strategy in the long term?
BEP8: The massification of the Binance Chain
Thus, BEP8 would be a protocol for the issuance of new tokens in Binance Chain, which reduces the entry costs established by BEP-2. So, currently the cost for a BEP-2 token to be listed on Binance DEX is around 1500 BNB. A figure that may be too high for creators of interesting projects, but without large financial resources.
Therefore, BEP8 would have much lower requirements for issuing and listing tokens. Because, the creators of a token based on this protocol can list it directly against two virtual currencies, the Binance cryptomone currency, BNB, and its US dollar-based stablecoin, BUSD.
Although this would provide less flexibility to BEP8 tokens, it would be sufficient for creators of mini projects, or for those who want to issue tokens to support their intellectual property. For them, features such as having their token pairs executed in each block of the Binance Chain as BEP-2 tokens, are not as crucial. Being able to tolerate them being executed every 16 as Binance promises.
In this way, Binance would be trying to give its Blockchain a new boost through the BEP8 tokens, defending its title as the most powerful exchange in the world. In an attempt to massify the use of its chain for the creation of projects related to the crypto world. Challenging in this way the position of other cryptomonies like Ethereum and Tron.