Frequently Asked Questions (FAQ)
Table of Contents
What are Layer-1, Layer-2 blockchains?
Layer-1 is the term that’s used to describe the underlying main blockchain architecture. Layer-2, on the other hand, is an overlaying network that lies on top of the underlying blockchain.
What are wrapped Cryptocurrencies?
Wrapped cryptocurrencies enable crypto assets to be used on blockchains to which they are not native. This interoperability hack has brought bitcoin (BTC) and other popular cryptocurrencies to smart contract platforms, including the Ethereum ecosystem.
What is the difference between Binance Chain BNB (BEP-2 format) and Binance Smart Chain BSC (BEP-20 format)?
BEP-2 represents a token standard on Binance Chain, while BEP-20 represents a token standard on Binance Smart Chain.
Binance Chain (BNB) was launched by Binance in April 2019. Its primary focus is to facilitate fast, decentralized (or non-custodial) trading.
Binance Smart Chain (BSC) is best described as a blockchain that runs in parallel to the Binance Chain. Unlike Binance Chain, BSC boasts smart contract functionality and compatibility with the Ethereum Virtual Machine (EVM).
Difference between the wallet addresses
- BUSD BEP-2 and BNB BEP-2 addresses on Binance Chain starts with ‘bnb’. Also, BEP-2 addresses requires the use of MEMO
- BUSD BEP-20 and BNB BEP-20 addresses on BSC starts with ‘0x’.
What is the difference between Buy/Sell and Swap/Convert?
- ‘Buy/Sell’ in the crypto world refers to using fiat money to purchase crypto assets and selling crypto assets to get fiat money back.
- ‘Swap/Convert’ on the other hand, refers to exchanging one cryptocurrency you hold, for the equivalent value of another cryptocurrency. It is like a barter trade. The primary difference is that no fiat currency is involved.