You might known Binance as the world's latgest blockchain and digital assets exchange, but what's Binance Smart Chain? And what makes it so... smart? 👀
Binance Smart Chain (or BSC) is a blockchain network by Binance, launched in September 2020 for the developers to build decentralized applications, focusing on scalability.
Binance#Binance Smart Chain Has Launched! 🚀
Numerous crypto projects are already working with the Binance Chain community to help make BSC a robust blockchain platform, such as:
binance.com/en/blog/421499…13:01 PM - 01 Sep 2020
Interestingly, BSC is based on Ethereum and features smart contracts along with a support for a wide range of DeFi protocols. By incorporating a consensus mechanism called Proof of Staked Authority (PoSA), a combination of Proof of Stake (PoS) and Proof of Authority (PoA), BSC makes the best of both worlds boosting the network performance.
Some of the key-features of Binance Smart Chain are:
- Ethereum Virtual Machine (EVM) Compatibility, which means DApps running on Ethereum can be ported for BSC
- Cross-chain compatibility with Binance Chain
- Proof of Staked Authority
- Lightening-fast Block Time of ~3 seconds
BSC provides a staking functionality for BNB holders, which is the native token for Binance ecosystem. By participating in staking, the BNB holders receive rewards from BSC validators, along with staking interests.
- Binance Chain is completely different from BSC. The former was the original network by Binance, built to support Binance DEX, but it didn't offer smart contracts
- BSC was then introduced to offer scalability through smart contracts
- Binance Chain and BSC are interoperable
- BSC is independent, and can run even if Binance Chain goes down
- The liquidity on Binance exchange serves as a huge plus for BSC
- BSC widely contributes to bridging the gap between centralized and decentralized finance
- There's BSC support on various leading wallets including Trust Wallet and MetaMask
Using Binance Smart Chain, you can:
- Trade using DEX platforms such as PancakeSwap
- Create pegged tokens from other blockchains to make them compatible with BSC
- Perform yield farming using platforms such as Autofarm
- Create NFT marketplaces or trade on the existing ones
Disclaimer: This blog is meant for educational purposes only and nothing from this blog should be taken as a financial advice. Please DYOR before investing.