How does Bitcoin Under Bep-20 works ?

Lucius

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Quote from: Nwada001 on December 15, 2022, 05:39:06 AM

Yes I have learned a lot from this thread, I was confused earlier but now am enlightened and I now know the difference right now.

It's nice that you give feedback, that's something I rarely see from new forum members. Now that the matter is clarified, it would be good to lock this topic, just look for that option (bottom left -> lock topic).

Beparanf

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BEP20 Bitcoin is just a wrapped token. It’s basically just another BEP20 token named Bitcoin and use it as proxy of the original Bitcoin that sent on the address with smart contract that wrapped it to become a WBTC on BEP20. This is dangerous because you are just trusting the devs of that coin for the equivalent value of your BEP20 tokens is safely store on the smart contract address. Your investment will be ruined in case the developer runaway since the value of your BEP20 Bitcoin will be depegged.

Holding the real Bitcoin is the best although there’s still some advantage on using wrapped tokens in terms of transaction fee since exchange has flat rate for withdrawal on native Bitcoin.

Nwada001

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Quote from: Lucius on December 12, 2022, 06:18:17 AM

I think the OP got good information and that from now on it will be clear to him what the difference is between what he thought was Bitcoin and what really is Bitcoin.

Yes I have learned a lot from this thread, I was confused earlier but now am enlightened and I now know the difference right now.
I will no longer think and see Bitcoin same way. was confused but now I understand what I was actually trading and transacting in the past weeks.
Thanks to everyone who have given me their knowledge

BlackBoss_

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Rollbit is for you. Take $RLB token!

It is not real Bitcoin but shit tokens were created for bridges and maybe scam efforts too.

They are tokenized tokens which claim to be backed 1 : 1 by real Bitcoin. We don't know the 1:1 back ratio is true or a lie. There were de-pegs on such tokenized tokens already. soBTC, WBTC and more.

These tokens are not different than tokenized fiat currencies and call them as stable coins that are not stable at all.

Wrapped tokens
https://coinmarketcap.com/view/wrapped-tokens/
https://www.coingecko.com/en/categories/wrapped-tokens

Like if you want to buy stocks, buy real stocks on stock market and avoid tokenized stocks
https://coinmarketcap.com/view/tokenized-stock/
https://www.coingecko.com/en/categories/tokenized-stock

livingfree

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As explained very well, only you can see on bitcoin explorer is the actual bitcoin and not any other tokens that's pegged to bitcoin and made out of any procotols or networks like BSC.

There are the wrapped version of bitcoin which is called wrapped bitcoin but they're not the real bitcoin, they're tokens. Just take the real bitcoin and you'll be good with it as it also have a cheap fee these days unlike before.

The difference is just a few cents away.

Newlifebtc

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Quote from: ?? on ??

When making transactions on the BEP20 network, I feel a bit strange, because there are too many types of networks that I don't understand. In the end, I'm afraid to save BTC there. I use the BEP20 network for storing and interacting with altcoin tokens only. While I still use electrum to save my "long term" BTC.

We we don't have all those things that is why we value this platform because it is educative at least with you this you have said so far I have understand exactly what you are saying concerning your own teaching or your own understanding in Bitcoin and the transaction also so I believe that every new bill can learn as well through your own method of teaching

Lucius

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I think the OP got good information and that from now on it will be clear to him what the difference is between what he thought was Bitcoin and what really is Bitcoin. However, I believe that a lot of people live in the same delusion and think that they have discovered a way to send Bitcoin much faster and cheaper, even though the on-chain fees have been quite low for a long time. Of course, for those who use a custodial wallet or better said CEX, these fees are still quite high because they also pay a service fee, and then fall into the trap of some token invented by CEX.

One would think that people would have learned something from the recent failures of projects that are mostly related to so-called stablecoins or tokens, but it seems that the show still goes on, just at a slightly slower pace.

franky1

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bitcoins do not move to different networks, you will not find bitcoin on other networks

other networks store other units of measure that supposedly represent bitcoin.. but are just pegged to a conversion/redemption/settlement method back to bitcoin via many different ways specific to however those silly networks operate
but those peg/conversions are only as good as the network code of the silly network that supposedly allow/protect the conversion rate

Bep-20 btc
wbtc
liquid lbtc
lightning ln-btc/msat

[list goes on]
are all not actual bitcoins, just pegged representations

some sidechains dont even directly peg and settle back to the bitcoin network via a convert-settlement mechanism independently or cooperatively on the sidechain network. they are needed to be deposited into a business/service who redeems one token to then allow withdrawal via a bitcoin transaction to a bitcoin blockchain address you request

just be sure your doing a withdrawal request of bitcoin to the bitcoin network

[/list]

NeuroticFish

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Quote from: Nwada001 on December 12, 2022, 03:13:47 AM

I find the Bep-20 BTC deposit as the fastest way to receive and send Bitcoin directly into any centralized exchange account that supports it.

BEP-20 BTC is an altcoin. Unlike Bitcoin, which is decentralized and accepted by all crypto exchanges, this BEP-20 BTC thing is a centralized token that runs on Binance chain and I don't think that many accept it (except Binance, of course).
So you use a coin that is not Bitcoin, which is barely accepted and for which you have to trust Binance that this token's price will stay "close enough" to Bitcoin price. Hence sorry, but you're doing it wrong and on the long term you may face (bad) surprises.

And as a lesson: one can name any crap Bitcoin or Bitcoin whatever, but that doesn't make it Bitcoin. The actual Bitcoin works only on Bitcoin's blockchain. Period.

dansus021

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Well everyone already explaining,

[Too Long Didn't Read] Bitcoin in other chains like BEP20 is a wrapped version so people can use it on other chain and play with Decentralize Finance is same as the Stable coin like USDT BUSD USDC and the value must the same to original chain in case here Bitcoin so Btc-bep20 should have same bitcoin in bitcoin chain.

If you want to know the proof of asset where is the binance coin-peg at you can see here https://www.binance.com/en/collateral-btokens

In your case was Bitcoin can be check here the pool of asset https://www.blockchain.com/btc/address/3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb

if you doing everyday in DeFi you should careful to know more of their proof of reserve you don't want USTC luna happen again Wink

tjtonmoy

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First, I would like to tell you about tokens and coins. What is the difference between a token and a coin.
A token is created in an existing blockchain which the token does not own. And a coin has its own dedicated blockchain.
So from my understanding, what you have in your BEP-20 address is just a token created on BEP-20 blockchain to represent the value of original Bitcoin.
If you don't own BTC on its own blockchain, then you don't own any BTC at all.
BEP-20 BTC is just an imposter.

Plaguedeath

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Bitcoin doesn't work on BEP-20 or centralized chain, it's just a fake Bitcoin where the price pegged with the real Bitcoin. Although using BEP-20 make the fees cheaper, but that's the way how CZ want to scam everyone. Don't get tricked, there's a way to use Bitcoin with cheaper fees, you can use segwit address or lightning network. Many wallets already start integrating with lightning network, but only few centralized exchange has this feature.

What's the point to hold fake Bitcoin if we have real Bitcoin?

Ever-young

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Blockchain transactions can't be manipulated, so far as the transaction is successful it will be recorded on the blockchain.
You sent from Bundle wallet to a centralized exchange right?.
If the receive of that btc is using a Binance generated bep-20 BTC address, it will not be recorded on the blockchain reason being that Binance is also the owner of Bundle which was a wallet and App introduced specifically for Africans.
So transaction interested between this 2 are recorded as internal transaction which inter transaction are not recorded or seen in any blockchain explorer.
https://www.binance.com/en/blog/all/introducing-bundle-an-africafocused-social-payments-app-for-cash-and-crypto-421499824684900534

hosseinimr93

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There is no bitcoin on binance smart chain and you can't send bitcoin to a BEP20 address at all.
What you send and receive on binance smart chain is a token which is claimed to be begged to bitcoin and it's normal that you don't see such transactions on bitcoin blockchain.

I recommend you to avoid those fake bitcoins and use the real bitcoin which has only one blockchain. A real bitcoin address starts with 1, 3 or bc1.

Nwada001

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Since I joined this forum I have learned a lot and I have also put most in practice why learning more from enlightened forum members here.
I have Bitcoin wallet which I use in receiving transaction from Bitcoin blockchain. And I also have Bep-20 address which I receive Bitcoin with as well directly into my Binance account.
I run a local P2P trade in my locality with my trusted friends and those they refer.
I find the Bep-20 BTC deposit as the fastest way to receive and send Bitcoin directly into any centralized exchange account that supports it.

Their was a little argument with one of my Client yesterday which I told him all transaction are being recorded in the blockchain irrespective of which chain that it is, the argument made me to scan through one of my customers wallet to prove my point, all the Bitcoin I sent to the user wallet through Bitcoin blockchain were all visible on https://www.blockchain.com/explorer

When I moved ahead to scan the Bep-20 address under Binance scan, I could not find any BTC transaction both in and out of the wallet, nothing related to btc was on that wallet.

My question here is, are their other ways of scanning Bitcoin Bep-20 which is different from the Binance scan?

Me sending to the receivers address from my Bundle wallet.

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