The Binance Network was launched in 2019, and it is a blockchain developed by Binance that also runs a cryptocurrency exchange and a decentralized trading platform in addition to its management of the cryptocurrency BNB, which is one of the largest cryptocurrencies by total market value.
Blockchain Binance was launched relatively quickly and optimized to allow for fast trading, but it did not have the comprehensive functionality needed to support a wide range of decentralized applications (dapps).
Binance looked into this problem, and as a result, it developed the Binance Smart Chain.
In the following, we will discuss in some detail the “Binance Smart Chain” and how it works?
What is Binance Smart Network?
Launched in September 2020, Binance Smart Chain is a blockchain service that allows developers to build their own decentralized applications using smart contracts.
The original Binance chain was not built to allow advanced functionality, so Binance then developed the Binance Smart Chain to provide an advanced type of fast transaction while greatly expanding the available features and capabilities.
The new smart grid from Binance supports the Ethereum Virtual Machine, which means it is able to run dapps running on the Ethereum blockchain.
It is worth noting that Binance Smart Network is not a modified or updated version of the original Binance network. Rather, Binance built it from scratch and is thus completely separate and independent and can continue to work even if the original old Blockchain Binance is interrupted.
Meaning, Binance Smart Network was designed to work in parallel with the old network.
How does it work Pennans Network Smart " Binance Smart 's the Chain"?
Binance Smart Network uses what it calls a Proof of Ownership Consensus (PoSA) algorithm, which is a combination of Proof of Stake and Proof of Authority models.
Network auditors are those who have allocated a certain amount of BNB digital currency to be allocated to the network, after which they receive rewards resulting from transaction fees when verifying the validity of the blocks supported on the network.
As mentioned earlier, the old Binance Network and the Smart Binance Network are designed to work in perfect harmony between them, meaning that digital currencies can be transferred quickly between different blockchain Binance networks, thus coupling the capabilities of the rapid circulation of the first network with the smart contract function of the new smart grid.
Thus, BEP-2 and BEP-8 from the old Binance network can be replaced by BEP-20 from the new Binance smart network.
Another feature of Binance Smart Network is its support for decentralized applications built on a blockchain other than Binance such as decentralized applications built on the Ethereum blockchain.
That is, it entered into direct competition with Ethereum and a step towards attracting developers of decentralized applications on Ethereum to develop their applications on Binance's smart network.
What defines Binance Smart Network?
Cross-network compatibility between Binance Native Network and Binance Smart Network provides an intriguing synthesis on the part of developers.
Compatibility between these networks allows developers to harness the strengths of blockchain networks according to what they want to get.
By virtue of Binance's smart network support for the Ethereum EVM, this means that decentralized applications can be brought from Ethereum and then improved and expanded on the “Binance Smart Chain” network.
There are a lot of emerging blockchain networks aiming to steal the lights from Ethereum that are distinguished by their support for the virtual device “EVM”, including the “Avalanche” project and “Telos”. Binance has also added its name to the list using its new network.
What can be done with Binance Smart Chain?
Binance Smart Network is aimed at decentralized application developers, whether they are looking for a platform to build a new application on it or want to migrate their projects from Ethereum.
Between the dual-strand system, EVM support, and Binance proprietary support, Binance hopes to attract developers to its ecosystem, and create value for all stakeholders.
The founder of Binance stated in October 2020 that the goal of Binance Smart Grid is to be a way to bridge the gap between centralized and decentralized financing.
Binance has created a $ 100 million fund to support decentralized finance (DeFi) projects being launched on the new blockchain Binance, including up to $ 100,000 for some individual projects.
Finally:
It can be said that the Binance smart grid that was launched at the beginning of September 2020 is in its early days.
However, Binance is counting on it to be present and compete with Ethereum, as it has allocated a support fund of $ 100 million for decentralized financing applications based on the new network.
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