What is Binance Smart Chain?
Binance Smart Chain (BSC) is a high-performance blockchain platform launched by Binance, one of the world's leading cryptocurrency exchanges. Introduced in September 2020, BSC is designed to provide a robust infrastructure for decentralized applications (dApps), smart contracts, and digital asset creation. It was crafted to tackle some of Ethereum's long-running challenges, particularly high gas fees and slow transaction speeds.
To achieve this, BSC employs a consensus mechanism called Proof of Staked Authority (PoSA). This innovative system allows participants to stake the network’s native tokens for a chance to validate transactions and earn rewards. Not only does PoSA significantly lower energy consumption compared to traditional methods like Proof of Work, but it also reduces the barriers of entry for validators.
A Little bit of History
Binance's blockchain journey began in 2017 with the launch of the original Binance Chain. However, as decentralized finance (DeFi) applications began to soar in 2020, Binance introduced the Binance Smart Chain to run alongside the Binance Chain and compete with Ethereum. This move was timely as network congestion and high gas fees on Ethereum were driving up transaction costs and slowing down processing times.
In 2022, Binance streamlined its blockchain ecosystem by merging the Binance Chain with the Binance Smart Chain, forming a new dual-chain structure. The original Binance Chain was renamed the BNB Beacon Chain, while the Binance Smart Chain became the BNB Smart Chain. Together, these two chains are known as the BNB Chain. This rebranding aligns with Binance’s goal of developing a broader blockchain ecosystem independent of the Binance exchange.
The popularity of the BNB Chain has skyrocketed, leading to a surge in new projects being built on the platform, such as Bitcoin BSC. BNB Smart Chain brings programmability and interoperability to the BNB Beacon Chain, using a combined delegated proof of stake (DPoS) and Proof-of-Authority (PoA) consensus mechanism, collectively known as Proof-of-Staked-Authority (PoSA).
Benefits of BSC
One of the major perks of Binance Smart Chain is its lightning-fast transaction processing speed, capable of handling up to 100 transactions per second. This makes it an attractive option for decentralized applications (dApps), especially those requiring high-speed and low-cost transactions, such as decentralized exchanges (DEXs) and gaming platforms.
BSC also shines with its compatibility with the Ethereum Virtual Machine (EVM). This feature allows developers to migrate their Ethereum-based dApps to BSC with minimal modifications, leveraging Ethereum's extensive toolset and community support.
Binance Smart Chain, with its speedy transactions, low costs, and robust security, is not just a blockchain—it's a thriving, innovative ecosystem. Whether you’re a developer looking to build the next big dApp or a user seeking efficient and affordable transactions, BSC offers a world of possibilities. Jump in and explore the future of decentralized finance and beyond!
Reminder
Recently, Binance announced its decision to sunset the BNB Beacon Chain BEP2 network. This strategic move is intended to streamline operations and optimize the performance of Binance's blockchain infrastructure. According to Binance, this decision is part of their ongoing efforts to enhance their ecosystem and offer users better functionalities and features.
In preparation for the retirement of the BNB Beacon Chain, cross-chain exchanges between BNB Beacon Chain (BEP2) and Binance Smart Chain (BEP20) are now available on ChangeNOW! Click the link below to exchange your NOW tokens and learn more about BNB Beacon Chain in our previous article.
