The foundation of Binance Smart Chain made CZ become the US dollar billionaire in under a year. In fact, he was the person who grows rich fastest in history. By building a blockchain that reduces transaction fees, Binance Smart Chain lowers the entry barrier for small investors with a limited budget and brings the cryptocurrency market to the majority.
So what is Binance Smart Chain? What are the prominent features of this platform? Let’s find out with BSC Army through the following article.
What is Binance Smart Chain?
Binance Smart Chain, also known as BSC, is an advanced blockchain that was upgraded from Binance Chain, the origin of BNB currency, in September 2020. However, it does not replace Binance Chain but runs parallel with Binance Chain and still uses the BNB token.
Binance Chain is enhanced for speedy trading and in order to make this happen, certain trade-offs are needed. This is where Binance Smart Chain steps in, a brand new blockchain including a comprehensive development system that enables high-performance decentralized applications.
Compared to the original version, Binance Smart Chain offers higher operational efficiency and a wider range of applications.
BSC applies the Proof of Stake Authority (PoSA) algorithmic has opened an ecosystem that brings benefits to the users, token holders, validators, etc. through a rewarding blockchain. This provides a solid start and plenty of room for, which is a hybrid model of Proof of Authority and Proof of Stake. Accordingly, BSC is capable of providing smart contracts as well as compatibility with the Ethereum (ETH) system through Ethereum Virtual Machine(EVM), Cross-Chain support for Binance Chain. Furthermore, the design allows concurrent cross-chain compatibility from all three networks BCS, Binance Chain, and Ethereum.
So far, it is claimed to be the most feasible blockchain network available; offering numerous benefits in terms of gas fee, transaction speed, scalability, security, along real-world applications.
- BNB: Binance Coin
- Ethereum Virtual Machine(EVM): a blockchain-based software platform that allows developers to create decentralized applications (Dapps)
- Cross-Chain: interoperability between two independent blockchains
- BSC: Binance Smart Chain
Outstanding features of BSC DeFi Ecosystem
Binance Smart Chain is constructed on a dual-chain design, allowing users to enjoy the flexibility of transferring assets from one blockchain to another with ease. Binance Smart Chain’s interoperability offers users access to a vast ecosystem of apps. Interoperability is one of the key features appreciated by DeFi enthusiasts and Binance Smart Chain is at the forefront of making this happen.
Low transaction costs
Users pay transaction fees, also known as blockchain fees when they make a transaction on the blockchain and the transaction is confirmed. Miners or validators receive this charge to verify that the blockchain only stores and processes valid transactions.
Because most DeFi apps require countless conversions between multiple smart contracts, orders and transactions are charged a fee at each stage. As a result, blockchain fees are a significant consideration when selecting a blockchain protocol.
Two of the most popular blockchains for DeFi initiatives are Ethereum and Binance Smart Chain. When it comes to blockchain fees, Binance Smart Chain is significantly more cost-effective than Ethereum – especially for small transactions.
Another point that DeFi developers must consider before picking a blockchain is avoiding needless transaction delays. Before a blockchain transaction can be fully executed, it requires some confirmation. The goal of validation is to eliminate the possibility of double-spending fraud. The greater the confirmation time, the longer the transaction will take to complete.
Ethereum has been constrained by its difficult issues, which have resulted in transaction bottlenecks and lengthier transaction wait times. Therefore, Binance Smart Chain is specifically designed to overcome that weakness. This blockchain has been strengthened with scalability in high-throughput blockchains to make it easier to execute smart contracts, resulting in a decentralized application environment that is easily scalable.
Binance Smart Chain is based on the same structure as Binance Chain, which is a high-performance, low-latency blockchain. Binance Smart Chain may be designed and is compatible with smart contracts for DApps. It is connected to the high-throughput Binance Chain to enable short transaction confirmation times and faster transaction processing speeds at a lower cost.
Returning to the appeal of DeFi, massive sums of money are being injected into the market, causing Ethereum’s number one position to shatter while Ethereum 2.0 is still being developed. The DeFi craze is not going away anytime soon; money will continue to flow, and it’s shifting to Binance Smart Chain.
Currently, on the ecosystem of Binance Smart Chain, there are 628 applications, belonging to all categories such as AMM, NFT, Infrastructure, DEX,…
You can refer to the detailed information about the project at the webpage: https://bscproject.org/#/
Binance Smart Chain is considered the Blockchain of the future because of its incredible development speed and community support with this blockchain. Binance Smart Chain’s BNB token has been predicted to continue to grow strongly in the long run, making it a good long-term investment.