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What is Binance Smart Chain (BSC)?

lnhngn 17/11/2021 12:52 692 views

Bitcoin is more and more interested in and choosing to enter the cryptocurrency market means that many new forms of investment are also born. Let’s find out specific information about Binance Smart Chain in this article.

What is Binance Smart Chain?

Binance Smart Chain abbreviated as BSC is understood as an advanced blockchain that is much improved compared to the original version of Binance Chain. But BSC is a parallel platform not a replacement for the old one.

BSC will provide users with smart contracts and compatibility with Ethereum through the EVM.

How does Binance Smart Chain work?

BSC uses the Proof of Staked Authority (PoSA) algorithm, which is a hybrid model of Poof of Authority and Proof of Stake. In the Binance Smart Chain system, validators to the network are those who stake a certain amount of Binance (BNB) and then receive transaction fees after validating blocks accepted on this network.

Binance Chain and Binance Smart Chain have a completely synchronized design and have built-in cross-chain compatibility between the two. With BSC, assets can be moved quickly between blockchains, combining the fast cryptocurrency trading capabilities of the original with the smart contract functionality of the improved version.

Binance Chain has BEP-2 and BEP-8 tokens that are also swappable with Smart Chain’s BEP-20 tokens. dApp creators on other blockchains can move EVM to Binance Smart Chain relatively easily thanks to compatibility.

BSC will be very attractive to dApp operators as Ethereum continues to grow and GAS fees will increase although Etherum’s plan to transition to the PoS model in Ethereum 2.0 is likely to alleviate some of the concerns about regulation. current model.

The main advantages of Binance Smart Chain

The biggest advantage of Binance Smart Chain is that it combines the best of both technologies together.

In particular, the advantage of BSC is the short block generation time and low transaction costs, which will support new users to convert assets in the fastest way with low transaction costs. Binance Smart Chain has EVM-compatible programmability and cross-chain communication capabilities, which will help improve work efficiency for programmers.

Ideas for setting up Binance Smart Chain

Binance Smart Chain is established based on the following special factors to ensure the safest for users:

BSC is an independent Blockchain so it brings security and safety to all users and developers.

BSC is compatible with EVM so it will support all existing Ethereum tools with faster transaction time and cheaper cost.

Binance Chain enables interoperability between 2 blockchains enabling cross-Chain communication and scaling for high-yield Dapps wishing to be faster and smoother to use.

Finally, Smart Chain’s on-chain governance is through PoS consensus and combined with 21 transaction validators to bring decentralization and increased community decision-making to fellow users.

Who can use Binance Smart Chain?

Binance Smart Chain serves all programmers, especially dApps, who want to build applications with Smart Contract feature to focus on tradable digital assets. BSC allows digital token issuance and trading based on both chains.

Therefore, BSC also offers an attractive opportunity for BNB holders who are interested in staking BNB to support the development of the Binance Smart Chain system and receive rewards.

Future of Binance Smart Chain

After the Binance Smart Chain concept was announced in early 2020, BSC officially launched in early September 2020. Binance is making a breakthrough behind the platform thanks to its 100 million support fund. USD for DeFi applications and highlights the benefits that the dual-chain approach offers.

The launch of Binance Smart Chain and efforts to attract DeFi app developers go against Binance’s core business of being a centralized exchange. Accordingly, BSC is constantly trying to innovate and grow stronger.

Projects running on Binance Smart Chain

Projects running on BSC under various fields such as Mywish (smart contract creation), ChainIDE (smart contract implementation), Bitquery (blockchain data), Nownodes (blockchain infrastructure), PARSIQ (cross-chain monitoring), Tenderly (smart contract monitoring) and BSCscan (blockchain explorer).

It can be said that Binance Smart Chain is said to be the most optimal solution because it is compatible with EVM that allows Ethereum tools to support faster speed and minimize transaction fees. Thanks to EVM programmability and interoperability, Binance Smart Chain can run on Proof of Stake, thereby increasing decentralization and community participation.

So, Binance Smart Chain anticipates combining the features of the DEX blockchain with smart contract functionality to make it possible for developers to add additional programming and interaction on the blockchain.

Above Binance has helped you better understand Binance Smart Chain, hope you will have the right direction. If you are in need of learning and participating in investing in buying and selling bitcoin, buying and selling ethereum, buying and selling cryptocurrency, come to Binance right away!

After more than 3 years of operation, Binance is one of the largest cryptocurrency exchanges in the world with a blockchain ecosystem worth 4 billion USD, with operations spanning many different platforms. Binance is currently a reputable cryptocurrency exchange in Vietnam that you should refer to. In addition, Binance always updates this information and knowledge about bitcoin transactions to support money transfers, safe transactions, and effective bitcoin buying and selling instructions.

What are you waiting for? Quickly download Binance’s bitcoin trading application on mobile devices at the App Store or Google Play and start trading cryptocurrency today.

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