Binance, a leading cryptocurrency exchange, has unveiled its custom blockchain. The network, known as Binance Chain, will support the $3 billion BNB cryptocurrency. It is currently powered by ethereum.
According to the exchange’s Thursday announcement, the BNB will become active on the new network April 23. Token holders will be encouraged to move their balances to this network. According to the company, token holders will be encouraged to migrate their balances to the new network. Binance Chain will create new BNB tokens. This will ensure that there is a constant supply of both networks.
Initial supply of BNB tokens will be 200 million. 48 million will be frozen, and 11654,398 will be burned on Binance Chain. Binance.com will provide assistance with mainnet swaps by providing the Binance Chain Explorer, Web Wallet and Web Wallet.
For BNB withdrawal requests, users will be required to provide a Binance chain address. Withdrawals then function “as a mechanism for converting ERC-20 BNB tokens in BEP2 BNB vouchers.”
According to the firm, users who want to retain the ERC-20 version BNB tokens will need to withdraw them into an ethereum wallet by April 23. Binance.com won’t allow the withdrawal of ERC-20 tokens BNB tokens after the deadline. The exchange explained:
Binance noted that the timeline for the events mentioned above is subject to change. In a recent live chat on Twitter, Changpeng Zhao, Binance CEO, explained the reasons for this change.
The Binance Coin is identical to the Ethereum coin on Ethereum network. It will be used to pay for network transactions and gas.