What is Binance Smart Chain?
What is Binance Smart Chain?
A blockchain that works in parallel with the binance chain is the best description of the binance smart chain (BSC). Unlike the binance chain, BSC specializes in smart contract functionality and compatibility with Ethereum virtual machines (EVMs) . BSC’s design goal was to maintain high throughput in the binance chain while introducing smart contracts into the ecosystem.
Virtually both blockchains are moving side-by-side. BSC is an independent blockchain that can operate even if the binance chain goes offline. However, both chains are very similar in design.
BSC supports a wide variety of Ethereum tools and DApps from launch for EVM compatibility . In theory, support makes it easy to migrate projects on Etherium to BSC. This means that users can easily configure applications like MetaMask to work with BSC. In fact, Bridge Smart Contract Development Services it’s just a matter of tweaking the settings. For more information, see How to use MetaMask with Binance Smart Chain .
Are you considering purchasing virtual currency? Buy Bitcoin with Binance.
How the Binance Smart Chain works
consensus
Binance SmartChain achieved a block time of less than 3 seconds with the Proof-of-Stake consensus algorithm . More specifically, I use what is called the Proof of Staked Authority (or PoSA ). Here, participants must stake the BNB to become a validator. If the validator proposes a valid block , they will receive the transaction fee included in the transaction.
Unlike many other protocols, BNB does not inflate, so you won’t get a new BNB as a block reward. Rather. As the Binance team regularly burns BNB, the number of BNB in circulation will decrease.
Cross chain compatible
The Binance Smart Chain was conceived as an independent system that complements the existing Binance Chain. Dual-chain architects were used for the idea that users can seamlessly transfer assets from one blockchain to another . This method allowed us to balance high-speed trading on the binance chain with building a powerful decentralized app on the BSC. This interoperability has created a vast ecosystem that can accommodate a myriad of use cases.
Binance Chain BEP-2 and BEP-8 tokens can be swapped for the new standard BEP-20 tokens introduced in Binance Smart Chain. If you read the article about ERC-20 tokens, Cross chain bridge development you already know the format of BEP-20. Because BEP-20 is exactly the same as Ethereum’s ERC-20.
The simplest way to move a token from one chain to another (eg BEP-2 to BEP-20 and vice versa) is to use the Binance Chain Wallet available in Chrome and Firefox . Probably. For this guide, see the Binance Chain Extension Wallet article.
Decentralized finance on the Binance smart chain
You know that many digital assets such as BTC , LTC , ETH , EOS and XRP already exist on the binance chain as Peggycoin. Peggy coins are assets on the native chain and tokens that are pegged. For example, suppose you decide to lock 10BTC in order to receive 10BTCB on the binance chain. In that case, you can trade 10BTCB and 10BTC at any time. This means that the price of BTCB will be about the same as the price of the original BTC.
This will allow you to efficiently transfer these assets onto the binance chain. If you’re curious about how this can be achieved , see the instructions on how to tokenize Bitcoin on Etherium .
The flexibility provided by Binance Smart Chains allows you to use assets on several separate chains in the fast-growing DeFi space. For example, applications like pancake swaps allow users to exchange assets in Trestress (similar to Uniswap ), further yield farming, and vote on suggestions. I can do it. Similar projects include burger swaps and bakery swaps .
summary
Binance Smart Chain greatly extends the functionality of the original Binance Chain and introduces state-of-the-art protocols designed to bridge the gaps between various blockchains. Although still in its infancy, EVM compatibility and BNB staking make this platform an ideal engine for developers building powerful decentralized applications.
If you still have questions about Binance Build a cross chain bridge, ask at Ask Academy , where the community can answer those questions. Also, see the white paper for more technical details on the Binance Smart Chain .