Binance Smart Chain - A Way to Enable Smart Contracts

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Binance Smart Chain - A Way to Enable Smart Contracts

Binance introduced Binance Smart Chain - A Dual Chain Concept to enable smart contracts and dapps. Here is complete information about the Binance Smart Chain and its significance.

Binance Chain

Binance Chain is a network for secure & fast digital asset exchange based on matching engines built on the distributed consensus algorithms. Before the concept of Dual Chain, Binance operated its trading functions and stored the transactions on the Binance Chain.

What is Binance Smart Chain(BSC)?

BSC - A Parallel Chain to Enable Smart Contracts

Binance Smart Chain, shortly termed as BSC is a new blockchain that runs parallel with the Binance Chain which is enabled by smart contracts built to be Ethereum Virtual Machine (EVM). BSC is built to provide the ability to develop and deploy DApps on Ethereum which is on Binance’s New Blockchain.

Binance Smart Chain boosts the functionality and compatibility with Ethereum Virtual Machine (EVM). The BSC is launched with the goal to provide support to the Ethereum tools and DApps.BSC supports for cross-chain transfers, creation of pegged coins. These pegged coins on BSC, BEP 20 act similar to ERC 20 tokens.

Binance Chain Vs Binance Smart Chain

Binance Smart Chain is a parallel chain to Binance Chain to increase the exchanges on Binance. Listed here are the highlights both Binance Chain & Binance Smart Chain.

Highlights of Binance Chain

  • BEP-2 Token
  • Peggy Coins
  • Governance
  • Orderbook or Match Engine
  • Cross-Chain Transfer
  • Proof of Stake and BFT

Highlights of Binance Smart Chain

  • Block Time - 5 Seconds
  • Cross Chain Transfer
  • EVM Compatible
  • Cross Chain Contract Events
  • Proof of Staked Authority

How does Binance Smart Chain (BSC) Works?

Let us look at the working of Binance Smart Chain in detail.

Consensus Algorithm

Binance Smart Chain uses Proof of Stake Authority (PoSA) where participants stake BNB for becoming validators and this BSC achieves 3 second block time.

If any participant proposes a valid block, they will receive transaction fees.There is no block subsidy of freshly minted BNB, since BNB is not inflationary. 

As Binance conducts coin burns regularly, the supply of BNB decreases over time.

Cross-Chain Compatibility

Binance Smart Chain is the complementary system to the already existing Binance Chain.This dual chain architecture is being used for providing seamless transfer of assets from one blockchain network to another.Through this rapid trading can be occured on Binance Chain with powerful decentralized applications built on the Binance Smart Chain.

BEP 2 and BEP 8 tokens from Binance chain can be swapped for BEP 20 tokens which is a new token standard introduced for Binance Smart Chain.

The easiest way to move tokens from one chain to another is the use of Binance Chain Wallet, which is available on Chrome and Firefox.

DeFi with Binance Smart Chain

There are many digital assets such as BTC,ETH,EOS,LTC and XRP which are already existing on the Binance chain as Peggy Coins.These coins are tokens pegged to assets on their own native chains.By doing this, we can effectively port those assets on the Binance Chain.

The flexibility offered by Binance Smart Chain, the way to transfer assets from one chain to another, makes this BSC be used in the growing DeFi world.

DeFi platforms like Pancakeswap, Uniswap allow users to exchange assets, engage in yield farming and vote on proposals. There are many DeFi projects such as BurgerSwap,BakerySwap which work the same.

Thus, this Binance Smart Chain has wide opportunities for Decentralized Finance and Dapps as whole.

Number of Dapps on BSC

Binance Smart Chain Mainnet was launched on September 1st,2020 to provide smart contract enabled chains into Ethereum for the DeFi market.

Binance CEO Changpeng, announced the launch of a $100 M developers seed fund to support the development of decentralized applications on BSC.

The first DApps to hit built on the Binance Smart Chain were DeFi applications such as PancakeSwap, BakerySwap and Beefy.

In total there are about 47 dapps currently running on Binance Smart Chain in which 38 are DeFi Dapps.

There are about 7,900 active dapps users with $41,588,673.40 in BSC-powered protocols on Binance Smart Chain.

Trust Wallet & Binance Smart Chain

The support for Binance Smart Chain from Trust Wallet is being provided through the secure storage solutions of BSC powered digital assets and mobile friendly ways to interact with Web 3.0

With the use of Trust Wallet's DApp Browser, anyone who uses a smartphone can experience the world of Binance Smart Chain Dapps and be a part of the Booming DeFi market.

Future with Binance Smart Chain

Binance Smart Chain is launched as a user-friendly alternative to Ethereum-based decentralized finance DeFi market. As there are more developers building DeFi Dapps on the BSC and users continue to follow, this ecosystem is expected to grow vertically with the addition of decentralized finance based dapps on the BSC network.

With the $100M seed fund by developers building dapps on Binance Smart Chain and this chain's high adoption rate for the first three months boosts the network usage.Its interoperability with the pioneering smart contract platform which is combined with fast transaction settlement times and low transaction fees might be the right ingredients for the Binance Smart Chain to become the market leading dapp development.

Thus Binance Smart Chain will unlikely become the “Ethereum Killer”.

Wrapping Up 

This Binance Smart Chain is adopted for smart contract development, decentralized application development and defi protocols and more. We Bitdeal - Leading Blockchain Development Company extends our services of developing and deploying smart contracts, dapps, defi protocols on Binance Smart Chain in addition to Ethereum, EOS and more.

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About Anushya

Hey Peeps !! This is Anushya an enthusiastic and energetic individual who persists in the field of Blockchain and Cryptocurrency for more than 4 years. At present, surviving as a Business Consultant and Blogger at Bitdeal. I am fascinated towards the upcoming trends and technologies in the digital globe. Stay tuned with us to move forward with innovations in the crypto industry !!

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