All you Need to Know about Binance Smart Chain (BSC)

All you Need to Know about Binance Smart Chain (BSC)

In today's fast-changing tech world, innovation is limitless. Every day, blockchain developers are introducing new and exciting technologies. In this article, we'll explore one of the latest innovations: Binance Smart Chain (BSC). Are you curious to learn more? Let's dive in!

Right after 18 months of its older sibling - Binance Chain, Binance Smart Chain was launched in September 2020. It is a smart contract platform that exhibits the capabilities of Ethereum and other dApp platforms like Tron and EOS (dApp platforms).

What is Binance Smart Chain (BSC)?

Binance Smart Chain operates on its main net, running parallel to Binance Chain, facilitating the creation of smart contracts, and leveraging BNB staking mechanisms. All interested individuals or companies can engage Binance Smart Chain development services. They must accumulate an adequate amount of BNB and participate as validators on this new blockchain network.

Origin of Binance Smart Chain

Binance Smart Chain (BSC) originates from the renowned cryptocurrency exchange Binance. It was introduced as a solution to address the scalability and cost issues faced by users of decentralized applications (DApps) and smart contracts on the Ethereum Network. This platform caters to the growing demands for decentralized finance (DeFi) applications and enhances the overall blockchain ecosystem by providing developers and users with an efficient and cost-effective platform for deploying and interacting with DApps and Smart Contracts.

Attributes of Binance Smart Chain

1. Independent from Binance Chain:

Binance Smart Chain is independent of Binance Chain. It is a standalone blockchain and doesn’t connect with the Binance chain from the same parent, Binance Exchange. This means that BSC wouldn't be affected by any problems with BC, and vice versa. Even if Binance Chain shuts down, BSC will continue to function normally.

For example: Imagine there are two highways built by the same construction company. They share the same starting point (Binance Exchange) but operate independently. Traffic on one highway wouldn’t be impacted by issues on the other.

2. Compatibility with Ethereum Virtual Machine (EVM):

Another important key feature of Binance Smart Chain is that it is compatible with the Ethereum Virtual Machine. The BSC network enables developers to create and migrate DApps, tools, and other ecosystem components without experiencing any difficulties. In addition, this compatibility allows for seamless integration with existing Ethereum-based projects, fostering interoperability and expanding the potential use cases within the blockchain ecosystem.

3. Seamless Integration with Native:

With native compatibility, Binance Smart Chain seamlessly integrates with Binance Chain, facilitating fluid communication between the two without imposing any restrictions. Unlike a layer two solution, Binance Smart Chain operates independently alongside Binance Chain, enabling users to transfer cryptocurrencies between both networks effortlessly. This integration enhances the efficiency of Binance trading and expands the functionalities within the Binance network, allowing for bidirectional transfers of assets between Binance Chain and Binance Smart Chain.

4. Decentralized Decision-Making: Stake & Govern

Binance Smart Chain empowers its users through community governance and staking mechanisms facilitated by its proof-of-staked authority (PoSA) consensus model. By holding Binance coin (BNB), the native cryptocurrency of the platform, users actively engage in securing the network and influencing governance protocols through voting. Through staking BNB, users not only contribute to transaction validation but also earn rewards. This inclusive approach not only bolsters network security but also expedites transaction processing, positioning Binance Smart Chain as a compelling option within the cryptocurrency exchange landscape.

5. Validator Quorum on Binance Smart Chain:

The Validator Quorum on Binance Smart Chain comprises 21 validators, elected based on their BNB stakes every 24 hours. No special qualifications are required; however, only the top 21 stakeholders can serve as validators. Validators update the network during 20-minute epochs consisting of 240 blocks. BSC implements slashing to deter malicious behaviour, making attacks costly for offenders.

Advantages of Binance Smart Coin

1. Fast Transaction Speed:

Binance Smart Chain ensures rapid transaction speeds, facilitating swift confirmation times essential for seamless processing within the network. With its efficient blockchain infrastructure, transactions are swiftly verified, enhancing the user experience and transactional efficiency. Users utilizing Binance wallets can experience quick and reliable transactions, fostering a smoother crypto trading experience. This expedited process boosts overall transactional throughput, making Binance Smart Chain a preferred choice for finance crypto enthusiasts.

2. Low Fees:

Binance Smart Chain offers users the advantage of lower transaction fees in comparison to alternative blockchain networks. This affordability makes it an attractive and cost-effective solution for decentralized applications and transactions. With reduced fees, users can engage in a variety of activities on the platform without incurring significant costs, thereby enhancing accessibility, and encouraging broader participation in the financial crypto ecosystem.

3. Enhanced Scalability:

Binance Smart Chain offers enhanced scalability, allowing for high throughput and increased transaction capacity compared to traditional blockchain networks. Through its innovative architecture and consensus mechanism, Binance Smart Chain can efficiently handle many transactions, ensuring smooth operation even during periods of high network activity. This scalability is crucial for supporting the growing demands of decentralized applications (DApps) and facilitating seamless user experiences within the blockchain ecosystem.

4. EVM Compatibility:

EVM compatibility enables seamless integration with Ethereum's ecosystem on Binance Smart Chain (BSC), leveraging a fork of the Geth Ethereum client. This facilitates access to Ethereum's developer and user communities. BSC offers economical deployment of dApps and streamlined transfer and creation of Ethereum applications. While BSC's dApps are cost-effective, Ethereum's boast superior speed and efficiency. This synergy enhances BSC's attractiveness in the crypto exchange and cryptocurrency realms, fostering innovation and integration.

5. Credible Platform:

Renowned for its credibility, the platform maintains integrity across its offerings, notably

Binance Smart Chain (BSC), a leading cryptocurrency exchange. Stringent vetting

procedures apply to all network validators, bolstering security and reliability

in blockchain development. This meticulous process is integral to the PoSA consensus mechanism, enhancing trust and confidence within the cryptocurrency exchange and cryptocurrency sectors.

6. Decentralization:

Despite being under Binance's operation, Binance Smart Chain (BSC) upholds decentralization by employing a validator system and consensus mechanism. Validators, elected based on their BNB stakes, ensure network security and integrity. Unlike traditional centralized systems, BSC allows anyone to become a validator, promoting inclusivity. This decentralized approach fosters a fair and transparent governance model where community members actively participate in decision-making processes, reinforcing the autonomy and resilience of the BSC ecosystem.

7. Rich Ecosystem and Integration: BSC boasts a vibrant ecosystem, housing diverse decentralized applications (dApps) and DeFi protocols that drive innovation and ecosystem expansion. Moreover, its integration with the broader Binance ecosystem, featuring the Binance cryptocurrency exchange, facilitates seamless integration with existing services, liquidity pools, and access to a vast user base. This synergy enhances Binance Smart Chain's appeal, promoting collaboration and growth opportunities within the cryptocurrency space.

Binance Smart Chain has emerged as an influential player in the blockchain space, offering unparalleled speed, scalability, and affordability. Despite facing challenges, BSC's vibrant ecosystem, innovative features, and strong community support position it as a frontrunner in the decentralized finance landscape. As the blockchain industry continues to evolve, BSC remains at the forefront, driving innovation and fostering growth in the digital economy.

About The Author

Jesse Anglen, Co-Founder and CEO Rapid Innovation
Jesse Anglen
Linkedin Icon
Co-Founder & CEO
We're deeply committed to leveraging blockchain, AI, and Web3 technologies to drive revolutionary changes in key sectors. Our mission is to enhance industries that impact every aspect of life, staying at the forefront of technological advancements to transform our world into a better place.

Looking for expert developers?

Tags

Blockchain & AI Integration

Category

Blockchain