What Is BETH
BETH is a new wrapped token (BToken) issued by Binance which is 1:1 pegged to ETH on the Ethereum blockchain.
With BETH’s launch, Binance aims to support users who trade or hold ETH on Binance platform during the 18-24 months needed to lock in Ethereum on-chain. Users can use BETH to redeem ETH after the formal launch of Ethereum 2.0 (also known as Eth2) and Binance Staking helps keep your tokens safe no matter what happens during the Ethereum 2.0 rollout.
Ethereum 2.0 is an upgrade that aims to improve the scalability, security, and sustainability of the Ethereum network. The Ethereum 2.0 upgrade will be released in three phases: Phase 0, Phase 1/1.5, and Phase 2. The Eth2 deposit contract reached the required minimum assets (524,288 ETH) on December 1, 2020, which launched Phase 0. Phase 1/1.5 is expected to roll out in 2021, followed by Phase 2. After Phase 2, the Ethereum network will transition from a Proof of Work to a Proof of Stake model, which is expected to improve the network’s speed, efficiency, and scalability. For more details about Eth2, please refer to Academy's article"What is Ethereum 2.0 and why does it matter"
And before Phase 1 of Eth2 starts, all ETH should be locked in. This translates to little flexibility when it comes to using your ETH funds. But with BETH, users can turn these locked funds into tradable assets while waiting for the lock-in period to expire. And when the time your ETH funds are unlocked, you can quickly redeem ETH by swapping out your BETH holdings.
To learn more about how to participate in Binance ETH 2.0 staking, please refer to the tutorial.