Binance Chain Launch Survival Guide

Binance just launched the Mainnet for Binance Chain – and there are significant changes such as a “BNB token swap” that you MUST know about. The Binance Token (BNB) will no longer be on the ethereum chain (ERC-20 Token), instead it will be fully migrated to Binance chain (BEP-2). This means if you hold BNB on an ethereum wallet, you must pay special attention or you might accidentally send it to the wrong address.

Binance BNB Token Swap
Binance has started the token swap for $BNB tokens. In the future, BNB address will begin with “bnb……” format instead of the ethereum “0x…” address.

BNB kept on Binance.com will automatically be swapped – no manual operation required
ERC20 BNB kept on Ethereum wallets will eventually be phased out – token swap procedure is still pending
Binance Dex with new BNB address
New BNB addresses are shown on Binance DEX
In terms of total supply, the amount of BNB remains the same. The initial supply of BNB will be 200,000,000 and 11,654,398 BNB will be burned on Binance Chain. Binance will burn ERC20 BNB tokens to keep the total supply constant as the token swap takes place

Binance DEX
Binance DEX has officially launched at Binance.org. This Decentralized Exchange is designed for advanced users who want to keep self-custody of their cryptocurrency assets (as opposed to centralized exchanges where funds are kept by exchanges).

Currently Binance DEX support their own token standard, the BEP2 token. For coins to be listed on the DEX, they need to be migrated to the Binance Chain. Whether coins are willing to migrate depends on what features they need:

Faster transactions – Accelerators and small number of Validators mean confirmation times are much faster
Centralized – Validators are pre-authorized and consensus is not open to general public
No smart contract support – Binance Chain is transaction only
Binance to Challenge Ethereum as top Token Issuance Platform?
With the introduction of the BEP2 token standard, Binance Chain can allow projects issue tokens via Initial Coin Offerings (ICO) or Initial Exchange Offerings (IEO). This feature allows BinanceChain to rival the ERC20 standard Ethereum which has been used by many popular projects such as Basic Attention Token (BAT) and OmiseGo (OMG). What sets BEP2 tokens apart is that it has a faster confirmation time and access to Binance DEX.

Whilst many have questioned if the success of Binance Chain would mean the demise of Ethereum, CEO Changpeng Zhao has denied this claim.

CEO Changpeng Zhao doesn’t see Binance Chain as a competitor to Ethereum
Currently Mithril (MITH) has chosen to migrate to be the first token to be migrated to the Binance Chain.

Article first appeared on Boxmining : https://www.boxmining.com/binance-chain-mega-guide/