What is Bitcoin BEP2 (BTCB)?
BTCB is a cryptocurrency that has been issued on the Binance Chain and is pegged to Bitcoin. To ensure the BTCB price remains consistent, Binance, a crypto exchange, has created a reserve of actual Bitcoin to back each BTCB token based on a ratio of one BTCB being equal to one BTC.
Binance enables interested parties to view the Bitcoin reserve held by the cryptocurrency exchange by making its reserved address publicly accessible. This allows them to confirm that the amount of BTCB issued is equal to the total amount of Bitcoin in Binance's reserve. Being backed by Bitcoin, Bitcoin BEP2 price is always close to the price of Bitcoin. Thus, it could be said that Bitcoin BEP2 is like a BSC-based version of Bitcoin.
Binance Chain utilizes a mix of Delegated Proof-of-Stake (DPoS) and practical Byzantine Fault Tolerance (pBFT) mechanisms to secure the network and all assets on it, including Bitcoin BEP2 coins.
BTCB Use Case
In essence, the BTCB token's primary use case is that it permits holders to trade BTC even when it isn't present on the chain of the asset they wish to trade to. This enables to access more trading pairs, leading to an increase in trading volumes.
Thus, BTCB is not an asset used for profit. Rather, it can be used as a means of exchange or a store of value.
Check out the current BTCB price that is featured on the Bitcoin BEP2 price chart above.
Who Founded Bitcoin BEP2?
On June 17, 2019, Binance made the decision to launch pegged tokens to the top cryptocurrencies. Therefore, Bitcoin BEP2 was also introduced in this batch.
BEP-2, short for Binance Chain Evolution Proposal 2, is a technological token standard for creating and deploying new Binance Chain tokens. It lays forth a set of guidelines and technical requirements that tokens must follow in order to function within the Binance Chain ecosystem. BEP-2 is the token standard for the Binance Chain, much like ERC-20 is for the Ethereum blockchain.