The best option for Binance was to launch a parallel blockchain to host smart contracts with added compatibility with Ethereum, the leading dApp network. Smart contracts have a history of bogging down their host networks, as witnessed in the December 2017 CryptoKitties crisis on Ethereum and recently, the Solana network. According to the exchange, introducing the smart functionality to the BC blockchain would have bogged down the network speed making it less efficient. It’s interesting to note that Binance opted to launch a second blockchain after Binance Chain instead of upgrading it, given that it was possible. It is a smart contract platform mimicking the functionality of Ethereum and other dApp platforms such as Tron and EOS. What is Binance Smart Chain (BSC)?īinance Smart Chain (BSC) launched in September 2020, about a year and a half after the launch of its older sibling BC. eToro USA LLC does not offer CFDs, only real Crypto assets available. The value of your investments may go up or down. What is DeFi? Liquidity Mining ExplainedĮToro is a multi-asset investment platform.
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How to Stake Cryptocurrency? Step-by-Step.How to Mint & Sell NFTs? Beginner’s Guide.
How to Invest in Crypto? Complete Beginner’s Guide.We will discuss in more detail the PoS system in the next section about BSC. Given that BC and Cosmos blockchains share a consensus mechanism, it also means that they share the Proof of Stake (PoS) model of governance and transaction validation used on Cosmos. An example is BNB which exists as a BEP-2 token on the BC blockchain.īinance Chain uses the Tendermint Byzantine fault tolerance (BFT) consensus mechanism, more popularly used on the Cosmos blockchain. Issuance of new tokens based on the BEP-2 standard.Controlling token issuance and supply through minting, burning, locking/unlocking, or freezing/unfreezing.Sending and receiving digital assets, including Binance native currency BNB.According to Binance, the BC blockchain serves the following functions: It also targeted a sub-one-second transaction confirmation time for trades on the platform.Īs a blockchain, BC is structurally limited, only allowing for decentralized trading. It intended to introduce the popular Binance Exchange’s winning formula of an intuitive UI and optimized UX onto the DEX. Most other DEX’es in the market are laden with poor user experiences and clanky interfaces, something Binance aimed to change with its new offering. It jointly launched the Binance Decentralized Exchange ( DEX) with the blockchain, designed for high transaction throughput. What is Binance Chain (BC)?īinance launched the Binance Chain blockchain in April 2019 to support its vision for decentralized trading. The crypto community refers to them as decentralized applications (dApps), and they are most popular on the Ethereum blockchain.Īn important question to ask at this point is that if Binance, the leading cryptocurrency exchange in the world, already had a blockchain, why did it create another one? Why a parallel chain instead of collapsing both into a single blockchain? And most importantly, how does BSC compare against Ethereum, currently the leading smart contract platform?
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Smart contracts are pieces of code that execute automatically once a preset condition is met. It was launched almost one and a half years after the latter with the explicit purpose of introducing smart contract programmability that was not supported in BC. Binance Professional: What's the Difference?īinance has also listed several other benefits that come with this rebrand, including boosting the throughput of the BNB Smart Chain, introducing on-chain governance mechanisms, and scaling from one to multiple chains.Binance Smart Chain (BSC) is a blockchain that runs parallel to Binance’s premier blockchain Binance Chain (BC). On top of the name changes, the number of validators will almost double, from 21 to 41, with the additional 20 validators acting as candidate block producers. This blockchain is now competing with Ethereum as one of the most popular blockchains for developing decentralized projects. Binance's newer blockchain (launched in 2020), the Binance Smart Chain, will now be known as the BNB Smart Chain.
Through this rebrand, the Binance chain (its first-ever blockchain launched in 2017), where crypto staking and voting takes place, will now be known as the BNB Beacon Chain. However, they will not be the same as before. Though Binance's two blockchains now exist under the "BNB Chain" umbrella, they will continue to have their own names.
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