BNB Chain, a key player in decentralized smart contracts, plans to make big changes to its blockchain architecture. The project announced on January 8, 2024, that they will shut down the BNB Beacon Chain. This part of the chain is important for managing staking and governance. The main idea behind the change is to combine two parts of their network into one, making things simpler and more effective.
BEP333 could make the network safer and better at handling digital assets. For those who own Bitcoin (BTC) and BNB, there’s no need to move their tokens. But, users holding other types of cryptocurrencies need to take action. In a statement, BNB Chain advised users with assets lacking cross-chain transfer capabilities to contact the relevant token issuers immediately.
The plan to combine the BNB Beacon Chain (BEP-2) and the BNB Smart Chain (BEP-20) into one by April 2024 is a big change for the BNB Chain. This move is aimed at making the system function more efficiently and securely. The primary goal here is solving the problems that come with having two separate chains in their network.
Users who are currently holding BEP-2 and BEP-8 tokens have been advised to transfer them to the BEP-20 chain to preserve their assets. BNB Chain has also proposed the BEP299 token transition to assist users who may not transfer their tokens in time. This mechanism will allow for a secure and trustless way to recover assets on the Binance Smart Chain (BSC) after the Beacon Chain ceases operations.
This comes amidst the backdrop of a period of significant growth for BNB Chain. Per data from the BNB chain’s official X account, in December 2023, the chain experienced record-breaking daily active user numbers and a notable increase in total value locked. The success of projects like Sleepless AI, NFP, and QnA3.ai on the opBNB platform, BNB ecosystem’s layer 2 solutions, contributed to this growth, attracting substantial user engagement. The increased activity on the BNB Chain is also reflected in the rising TVL, with projects like Kinza Finance and Venus Protocol showing impressive growth.
