What is the Binance Smart Chain project?

Before we talk about Binance Smart Chain, let’s talk about Binance. Binance is a popular cryptocurrency exchange, launched in 2017. Binance’s explosive growth is due to low transaction costs and fast transaction times. Binance also has its own token, Binance Coin (BNB). It can be said that Binance is one of the largest and best cryptocurrency exchanges in the world with billions of daily trading volume.

This cryptocurrency exchange has renamed its blockchain network. The Binance Smart Chain will now be called the BNB Chain. Binance Smart Chain (BSC) is a blockchain platform running on Ethereum’s virtual machine. It runs in parallel with Binance Chain.

How does Binance Smart Chain work?

Ethereum compatibility

One of the most important aspects to understand is: “What is the Binance Smart Chain Network?” is a design feature of Ethereum compatibility. Ethereum is undoubtedly the most popular and practical platform for developing smart contracts. Thus, Binance Smart Chain easily opens up the use of the majority of Ethereum-based dApps, tools, and ecosystem components. Therefore, the implementation of BSC can create a better prospect for catching up with future Ethereum upgrades.

Independent blockchain

The Binance Chain mainnet is essentially a standalone blockchain or a layer 2 solution that runs on top of the Binance Chain mainnet. Many of the BSC’s basic technical and business functions are self-contained.Therefore, it can guarantee availability even if Binance Chain is temporarily closed for a short time. It provides security and safety to all users and developers.

Native cross-chain communication

Binance Smart Chain’s two-blockchain interoperability will enable cross-chain communication and scaling for high-performance dApps that expect a fast and smooth user experience.

Consensus and governance regarding staking

The focus on staking-based consensus is another key highlight of the BSC. Through staking, BSC provides an eco-friendly approach to consensus and governance through staking, along with guaranteed rewards from staking.

The flexible approach to community governance through staking on BSC also provides better network performance than Proof-of-Work blockchains.

Binance Smart Chain (BSC) ecosystem

BSC’s blockchain is cross-chain compatible, so it’s almost like Binance Smart Chain inherits and extends Ethereum’s existing dApps. Currently, blockchain projects are eager to collaborate with Binance to develop their dApps. Among them, the main products currently are:

Decentralized Exchange Binance Exchange,
Binance Dex Swap as well as
Binance Saving and Binance Staking to Earn Rewards
Binance Labs is a fundraising exchange.
Launchpad Token Issuing Platform
Trust Wallet is a wallet storage platform.
Alpha FinLabs ecosystem

What is the Binance Smart Chain token?

The Binance Smart Chain (BSC) does not issue tokens; the blockchain network uses Binance Chain (BNB).

BNB (Binance Coin)

BNB is the native utility token of the Binance ecosystem, which can be used for both BSC and BC. BNB is mainly used to pay transaction fees on the BC and Binance DEX platforms, staking and transferring assets. BNB can also be used to run smart contracts on the BSC.

For those who want to participate in network security or earn more BNB rewards, BNB can be placed into smart contracts. And if users want, they can entrust their stakes to the BSC validators of their choice and earn a proportionate reward.

Other Tokens Accepted (BEP2, BEP8, ERC-20)

BEP2 and the upcoming BEP8 standards are both BC and BSC-powered tokens. ERC-20 tokens are also supported on the BSC blockchain.

Closing thoughts

Binance Smart Chain is a fast and low-cost DApp platform for crypto users. Surprisingly, the number of daily active unique wallets reached 50,000 on February 9, 2021, and the total transaction volume reached $15 billion by January 2021.

As long as the most popular smart contract-based blockchain, Ethereum, continues to grapple with congestion, slow transaction speed, and expensive transaction fees, we can expect continued adoption of options. more affordable alternatives like BSC, Polkadot, and Cardano.

Don’t forget to follow useful articles about Crypto Market from team Holding B !!!