What Is Binance Smart Chain?
Binance Smart Chain or BSC is a newer platform that was created to provide the space for newer products like DeFi (Decentralized Finance) and DApps. It is a blockchain network that is made to run applications that are based on smart contracts.
Is the Binance Smart Chain the same as the Binance Chain?
The BSC and BC are not the same although they run in parallel. Users get to enjoy the benefits of the two. The BC is known for being able to provide high volumes of transactions. The BSC has smart contract functions which is very effective. Users enjoy both these functions.
What does the BSC provide?
The Binance Smart Chain works very well on Ethereum-based applications. It implements the EVM or Ethereum Virtual Machine and as such, popular applications like MetaMask can be run on it. With the BSC, developers are able to build more DApps where users can then enjoy low latency and high volume management of their digital assets across various platforms.
How big is the Binance Smart Chain?
2021 is the year where the Binance Smart Chain grew exponentially. This came about with the problems faced in the Ethereum blockchains like transaction congestion and more notably the high gas fees that are imposed for transactions. Developers and investors have been looking at other options to overcome these challenges. The BSC was a more cost-effective and stable option. In February 2021, the BSC lowered its gas fee from 15 Gwei to 10 Gwei which further fuelled its popularity.
What are the unique features of the Binance Smart Chain?
The BSC is known for being:
- A proof-of-stake model – This is the way forward for the blockchain community as it allows faster transactions and where its native token (BNB) is used in voting on protocols and governance and for improving security. These are factors that are considered more efficient than the traditional Proof-of-Work platforms.
- An Ethereum-compatible platform – The BSC supports smart contracts that are Ethereum-compatible. This means that developers can build tools and components or migrate DApps on the network without any problems.
- An independent and standalone blockchain – The BSC only runs parallel with the BC which means that it has its own platform which is self-sustaining from the BC.
- A seamless platform – This is most evident for users who will move their cryptocurrencies between the BSC and the BC. They do not have any issues communicating between the BSC and BC since the former is an independent platform.
- A validated platform – There is a validator quorum where the BSC elects 21 validators by BNB stakers every 24 hours. This is required so that the BSC network is secure.
What token is used on the Binance Smart Chain?
The BSC uses the Binance Coin (BNB). This is the native utility token that is also used in the BC. The BNB is used for transactions, asset transfers and for staking purposes while the BSC uses BNB to run its smart contracts. BNB is staked on a smart contract by those who are involved as validators in the security of the network. Besides that, the BSC blockchain also supports ERC-20 and BEP2 tokens.
Why should I use the Binance Smart Chain?
One thing is for sure, it is a more secure network. There has been a spike in unique active wallets on the BSC since the turn of 2021 of more than 50,000. The total transaction volume breached US15 billion. With more people taking on Ethereum and smart contracts, the BSC seems to be the answer to overcome slow transaction speeds, congestion and other problems. BSC, like other platforms such as Polkadot, has provided more affordable options for users and that would be the way forward for certain.