WBNB (Wrapped BNB) is a BNB coin that can be used for transactions in the DeFi world if traded on the BEP20 network.

The alternative cryptocurrency for Binance Smart Chain (BSC) is BNB or WBNB. Wrapped BNB is a tokenized version of Binance Coin, whose value is pegged to the price of the BNB asset and can also be redeemed for the original Binance Coin at any time.

The basic difference between BNB and Wrapped BNB is that BNB has nothing to do with the BEP-20 standard, while Wrapped BNB complies with that standard. Therefore, you can use Wrapped BNB on Binance Smart Chain, but you cannot use BNB.

Creator of Wrapped BNB

The founder of WBNB is Changpeng Zhao, a Chinese-Canadian who is also the CEO and founder of the Binance platform. He and his team developed Wrapped BNB. In order to transport users, they developed the best educational module to present various logical facts behind the concept of WBNB.

BNB vs WBNB

The difference between BNB and WBNB lies in their applications. As mentioned earlier, Binance Coin does not follow the BEP-20 standard, so users cannot exchange it with many other tokens.

We can think of BEP-20 as an extension of the ERC-20 standard that allows any token on the Binance Smart Chain to be used by other applications such as DEXs and wallets. For this reason, there is a need for a wrapped version of the Binance coin based on BEP-20 that can be easily used to exchange with any other token available on the chain.

Users need WBNB for different purposes than BNB, but this does not devalue the latter and further expands the Binance ecosystem. Without WBNB, people cannot directly trade with altcoins available on the Binance exchange.

What does WBNB do?

Wrapped BNB aims to improve the interoperability of Binance Smart Chain, as the availability of different blockchains with different functionalities prevents tokenized interactions, thus limiting cross-chain transactions. BEP20 is the standard version of Binance Smart Chain, allowing other applications to use it, and wrapped BNB users to facilitate transfers between chains.

Binance Bridge is a cross-chain bridge development that aims to improve interoperability between different blockchains, allowing users to convert any token they want into a wrapped token that will be used on Binance Chain or Binance Smart Chain. With Binance Bridge, the method of bundling and unbundling tokens is simple as it supports cross-chain transactions between Ethereum (ERC-20), Binance Chain (BEP-2), and Binance Smart Chain (BEP-20) tokens.

These converted wrapped tokens are backed by the actual token it wraps and also have their unique public address. During the conversion process, the user must set the required parameters (i.e. the original token type of the token) to the desired token type.

Regarding transaction fees, Binance Bridge does not charge any conversion fees, the only gas fee is charged by the network of the token you need to convert.