Binance CEO: Bitcoin innovation wave during halving

Author: Binance Blog Source: Binance Translation: Shan Ouba, Golden Finance

In the digital asset space, the most important event is undoubtedly the Bitcoin halving in April this year.This year's halving event is unprecedented, not only because the Bitcoin network itself has made significant progress in Layer-2 solutions and new token standards, but also because it is unfolding in the context of broader developments that are shaping the cryptocurrency space in entirely new ways.

The interest and capital inflows from the recently approved spot Bitcoin ETF have reshaped the landscape, bringing new opportunities and higher demand. For the first time in history, Bitcoin reached a new all-time high before the halving rather than after it.

The surge in Bitcoin use cases, represented by the rise of inscriptions, is a sign that the network's vision goes far beyond its original design. This technology allows users to embed unique data and digital artifacts directly into the Bitcoin blockchain, injecting a new dimension into the ecosystem.

At Binance, we have always believed that Bitcoin has the potential to not only change the concept of money, but revolutionize the entire digital landscape. As the halving approaches, I would like to take this opportunity to reflect on the deeper significance of the original blockchain and highlight the many ways we have historically supported the Bitcoin ecosystem and facilitated user access to the broadest range of Bitcoin features - and continue to do so to this day.

Embracing Bitcoin’s History of Innovation

Binance has always recognized the foundational role that the Bitcoin ecosystem plays in the broader digital asset space. Since our early days, we have closely followed the evolution of Bitcoin and ensured that our users have access to and benefit from the innovations thriving in the original cryptocurrency space.

We are also proud to contribute to the community by providing ways to help protect the Bitcoin network. We improved miner rewards with Binance Pool, launched in 2020, and democratized access to users without specialized equipment with its cloud mining feature.

Binance has fully embraced Layer-2 solutions designed to help the Bitcoin network expand its capabilities. The exchange has supported Stacks — an L2 that powers Bitcoin smart contracts and decentralized applications (DApps) — since 2020, processing hundreds of transactions per day.

In July 2023, we added support for the Lightning Network, which bypasses one of Bitcoin’s major limitations, making BTC suitable for everyday transactions. Today, we have one of the largest Lightning Network nodes, providing premium connectivity to major Web3 wallets and centralized exchanges. Binance users conduct thousands of Lightning transactions per day, which take just seconds to complete. At just a few cents per transaction, this enables users to make BTC micropayments that are economically infeasible on the mainnet.

Inscribed Future

The upcoming halving event shines a spotlight on the innovation thriving on the Bitcoin network. This evolutionary phase further expands Bitcoin’s utility beyond being a currency and store of value, fostering a thriving environment for digital collectibles and assets similar to what we’ve seen in the NFT space. As the Bitcoin blockchain evolves, it has the potential to attract a wider audience – enthusiasts, investors, artists, creators, and more – with everyone attracted to the new opportunities. To support this innovative shift, we’ve been working hard to stay ahead of the curve, preparing a range of relevant products for these developments.

In February 2024, we introduced the Inscription Marketplace in Web3 Wallet, along with support for fungible BRC-20 and ARC-20 tokens, Taproot addresses, and Unspent Transaction Output (UTXO) management inscribed on the Bitcoin network, underscoring our commitment to supporting the thriving Bitcoin ecosystem and providing users with the necessary tools to explore these developments. Today, Binance’s Web3 wallet is one of the few cross-chain wallets that supports both ARC-20 and BRC-20 inscriptions.

Overall, our inscription marketplace simplifies the process of trading, minting, and managing inscription assets directly in the Binance app. Key features of the marketplace include support for over 60,000 popular BRC-20 tokens and one-click transfers between exchanges and Web3 wallets.

Driving the future with confidence

As we fine-tune our product suite to the dynamic pulse of Bitcoin, we certainly won’t lose sight of the basics: always providing the deepest liquidity and lowest slippage we can, and ensuring all users have access to the best BTC trading.

Whatever this historic halving brings, Binance will continue to support the latest developments in the space and provide our users with a convenient, secure, and innovative experience. As the Bitcoin space continues to expand and diversify, we will continue to focus on our users and help them ride the wave of digital asset innovation. We will keep building after this halving, or the next one.