The encrypted exchange currency Co., Ltd. announced today on the official website that it announced the launch of the bitcoin BTCB anchored in the currency chain. It can be used in the currency security transaction, and can also be carried out on the Binance DEX. transaction. It is reported that BTCB will be 100% supported by the BTC in the reserve. At present, the currency has already stored 9001 BTCs and successfully issued 9001 BTCBs ( https://explorer.binance.org/asset/BTCB-1DE ).
Image source: coin security
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In the future, the currency security will continue to launch a series of tokens on the currency chain (in accordance with the BEP2 token format), anchoring each major currency, and supporting it by 100% of the corresponding currency.
The principle of anchoring tokens
100% of anchor tokens like BTCB are supported by the native currency in the reserve. The currency will also announce the reserve address for users to view. For BTCB, its reserve address is 3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb . Blockchain provides an easier way to audit encrypted asset reserves than traditional bank balance systems.
At the same time, the transaction pair between the anchor token and the native currency will be launched on Binance.com, and BTCB / BTC will be the first such transaction pair.
The deal on Binance.com will maintain a large number of buy orders and keep the spread at around 0.1%, providing users with an easy way to convert anchor tokens back to native crypto assets on Binance.com . If this purchase order has been completed, the next new order will be placed and the same amount of funds will be deposited from the reserve address to Binance.com. The sum of the funds on the buy order and the published reserve address will be greater than the total supply of the anchor token, ensuring that the token is always 100% supported.
The benefits of anchoring tokens
Since various cryptographic assets have their own blockchains , it is clear that the main benefit of providing cryptocurrency to anchor tokens is to allow Binance DEX traders to trade various crypto assets on the currency chain . As the number of anchor tokens increases, so does the volume and liquidity, which will further increase the utility value of Binance DEX.
Although this method is more central than atomic exchange, Chanan believes that it provides a higher degree of ease of use for most traders. After all, most of the currency traders have already trusted Binance.com and are assured that they will continue to hold their funds. Compared with the legal currency system, cryptocurrency can provide a high degree of transparency, and anyone can publicly check the reserve at any time.
Coin noted that this centralized approach does not exclude cross-chain atomic exchange or other decentralization methods, and these methods can also be implemented in parallel.
The BTCB / BTC trading pair on Binance.com will follow in about a day, and the proposal to put on the DEX will be released soon.