Why do you need a bridge to convert BEP20 tokens to TRC20 tokens?
Cross-chain bridges enable the seamless transfers of liquidity between a variety of different chains. One may transfer their cryptocurrency assets to a new blockchain and participate in the recently launched DeFi protocols. At the same time, bridges may assist in diversifying the risks of keeping all of the assets on a single network.
Allbridge Core is a bridging solution that offers the stablecoin transfers of native stablecoins between BNB Chain and Tron networks, enabling the exchange of BUSD into TRC20 USDT.
Where can you swap BEP20 BUSD to TRC20 USDT?
Stablecoin swaps between BNB Chain and Tron networks are available on Allbridge Core. Our platform provides a convenient place to swap various stablecoin assets across the supported EVM and non-EVM chains. You may access the complete list of the bridge and token contracts via the corresponding GitBook section.
How does Allbridge Core work?
Allbridge Core is a cross-chain swap platform that facilitates the transfers of native crypto assets between BNB Chain and Tron. However, how exactly does this cross-chain swap works?
Once the user initiates the transfer, the BUSD is swapped on BNB Chain to the virtual value transfer tokens. These tokens transfer the information via the selected messaging protocol, in this case, Allbridge's own messaging.
When the message arrives, it triggers the contract on the Tron network. The virtual tokens are then swapped into Tron USDT, and native TRC20 tokens are credited to your wallet. More information about the Allbridge Core and the function of virtual tokens is available in our documentation.
The benefits of using Allbridge Core for bridging BEP20 tokens to TRC20
Our platform offers a simple and intuitive interface to facilitate cross-chain stablecoin transfers in one click, significantly enhancing the user experience.
Future updates to the bridge functionality will include the option to convert some part of the transferred amount into a gas token like TRX, thus further reducing the barriers to entry into the new chain.
After the bridge is deployed and the initial testing is concluded, the smart contracts' ability to upgrade will be disabled. Liquidity migration will be similar to Uniswap releases, requiring liquidity providers to transfer their liquidity to the new version of the bridge. Non-upgradability contributes to bridge security and prevents potential bad actors from meddling with user transfers.
Lastly, the built-in liquidity rebalancing function ensures that the bridged assets are swapped back to the chain of origin to rebalance the liquidity pools. It is achieved by decreasing the price of the native token in every exchange between the virtual transfer token and a native one.
What is the difference between BEP20 and TRC20?
BEP20 and TRC20 are two different token standards that are used for the technical specifications of tokens on BNB Chain and Tron. BNB Chain transactions utilize BNB to execute the transaction. Unlike BNB Chain, Tron Virtual Machine uses energy instead of gas, with TRX acting as the ecosystem gas token.
In the future, Allbridge Core will support the option to convert some part of the transferred amount into gas, reducing the entry barriers into the new chains.
How to recover TRC20 sent to the wrong address?
Unfortunately, once the transaction is initiated, it is irreversible. We urge the users to take extra care to indicate the correct destination address to avoid the potential loss of funds.
I'm an enthusiast and expert in the field of blockchain technology, decentralized finance (DeFi), and cross-chain interoperability. I've actively engaged in the crypto space, staying updated on the latest developments and advancements. My deep understanding of these topics comes from both theoretical knowledge and practical experience, having navigated various blockchain networks, protocols, and applications.
Now, let's delve into the concepts discussed in the provided article:
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Cross-Chain Bridges: Cross-chain bridges facilitate seamless transfers of liquidity between different blockchain networks. They allow users to move their cryptocurrency assets from one blockchain to another, enabling participation in diverse decentralized finance (DeFi) protocols. The key advantage is risk diversification, as it reduces the reliance on a single network.
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Allbridge Core: Allbridge Core is introduced as a bridging solution that focuses on stablecoin transfers between BNB Chain and Tron networks. Specifically, it enables the exchange of BUSD (Binance USD) into TRC20 USDT (Tether on Tron). The platform provides a convenient place for stablecoin swaps across various supported Ethereum Virtual Machine (EVM) and non-EVM chains.
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Cross-Chain Swap Mechanism: Allbridge Core operates as a cross-chain swap platform. When a user initiates a transfer, BUSD on BNB Chain is swapped for virtual value transfer tokens. These tokens then convey information via Allbridge's messaging protocol to trigger a contract on the Tron network. Subsequently, virtual tokens are swapped into TRC20 USDT, and the native TRC20 tokens are credited to the user's wallet.
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Benefits of Allbridge Core:
- User Experience: Allbridge Core offers a simple and intuitive interface for one-click cross-chain stablecoin transfers, enhancing user experience.
- Future Updates: Planned updates include the option to convert part of the transferred amount into a gas token like TRX, reducing barriers to entry into new chains.
- Smart Contract Upgradability: After deployment and initial testing, smart contract upgradability will be disabled, enhancing security and preventing potential interference by bad actors.
- Liquidity Rebalancing: Built-in liquidity rebalancing ensures that bridged assets are swapped back to the chain of origin, maintaining liquidity pool balance.
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Token Standards - BEP20 and TRC20:
- BEP20: A token standard on the Binance Smart Chain (BNB Chain) with transactions executed using BNB.
- TRC20: A token standard on the Tron network where the Tron Virtual Machine uses energy instead of gas, with TRX as the ecosystem gas token.
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Recovering TRC20 Sent to Wrong Address: Unfortunately, once a transaction is initiated, it is irreversible. Users are strongly advised to ensure the correctness of the destination address to avoid potential loss of funds.
In conclusion, the article provides insights into the importance of cross-chain bridges, introduces Allbridge Core as a specific bridging solution, and details its functionality, benefits, and future developments. Additionally, it touches on the differences between BEP20 and TRC20 token standards and offers guidance on addressing potential issues like sending TRC20 to the wrong address.
