Understanding Binance Smart Chain Bridge for Cross Chain Transfers

Binance Smart Chain (BSC) is a decentralized blockchain network built to combine fast trading with the ability to handle a high volume of transactions. Similar to how Ethereum requires ETH for gas fees, BSC uses BNB as its native token for transaction costs. Beyond speed and efficiency, Binance Smart Chain extends the capabilities of the original Binance Chain by adding programmability and smart contract functionality, making it a powerful platform for DeFi, dApps, and token development.

Binance Smart Chain-Ethereum bridge

Ethereum-Binance Smart Chain bridge is developed by Binance and used for transfer/bridge pegged assets cross-chain, i.e. transfer assets in or out of Binance smart chain. Binance bridge service providing access to inter-blockchain liquidity for Binance Chain.

Peg-In Procedure:-
 

Peg-In Procedure allows users to swap their crypto assets to the equivalent of pegged tokens on Binance Smart Chain. The following steps are taken:

1. The user first needs to create a swap request to on Binance Bridge Service.
2. Bridge Provider allocates a deposit address to the user.
3. The user needs to deposit the agreed amount of tokens to this address. If the equivalent amount of token is not sent before the deadline, the tokens are refundable.
4. Binance Bridge Provider takes notice of the upcoming token transfer from the user and sends the equivalent pegged amount of tokens to the receiver's address.
5. Binance Bridge Provider will lock the pegged user's tokens.
6. The user can see all the changes of his token balance of these pegged tokens.

Peg-Out Procedure:-

Peg-Out Procedure allows users to swap their crypto assets to the equivalent of pegged tokens on Binance Smart Chain. The following steps are taken:

1. The user first needs to create a swap request to on Binance Bridge Service.
2. Bridge Provider allocates a deposit address to the user.
3. The user needs to deposit the agreed amount of tokens to this address. If the equivalent amount of token is not sent before the deadline, the tokens are refundable.
4. Binance Bridge Provider takes notice of the upcoming token transfer from the user and sends the equivalent pegged amount of tokens to the receiver's address.
5. Binance Bridge Provider will lock the pegged user's tokens.
6. The user can see all the changes of his token balance of these pegged tokens.

Gas Fee for Transactions

When any users swap their tokens from Binance Smart Chain-Etherum bridge then they need to pay some amount of gas fee to create a transaction on Binance Smart Chain. so users must have some BNB in their wallets for the gas fees.