What is Binance Smart Chain?
The closest definition of the Binance Smart Chain (BSC) is a blockchain operating parallel to the Binance Chain. BSC has smart contract features and compliance with the Ethereum virtual machine, unlike Binance Chain (EVM).
The purpose of the Binance Chain’s design is to keep high throughput intact when incorporating smart contracts into its ecosystem.
All blockchains run side-by-side, in principle. It is worth mentioning that BSC is not a so-called workaround for layer two or off-chain scalability.
Since BSC is EVM-compatible, it has released Ethereum resources and DApps with support for the rich universe. This makes it possible, technically, for developers to port their projects from Ethereum.
For consumers, this ensures that you can quickly customize apps like MetaMask to function with BSC.
How does Binance Smart Chain work?
With a Proof-of-Stake consensus algorithm, Binance Smart Chain reaches ~3 second block periods. In fact, it uses something called Proof of Staked Authority (or PoSA), in which BNB members become validators.
They would obtain transaction fees from the transactions used in it, whether they suggest a legitimate block.
Compatibility of Cross-chain Interoperability
As an independent yet comparable scheme to the current Binance Chain, the Binance Smart Chain was conceived. The dual-chain architecture is used, with the premise that consumers may move capital from one blockchain to another seamlessly.
In this way, on Binance Chain, fast trading can be enjoyed, while on BSC, powerful decentralized apps can be created. Users are introduced to a large ecosystem of this interoperability that can cater to a multitude of cases of usage.
Binance Chain BEP-2 and BEP-8 tokens can be traded for BEP-20 tokens, the latest standard adopted for the Binance Smart Chain. It utilizes the same functions as its equivalent Ethereum.
What is the History of Binance Smart Chain?
In April 2019, Binance released Binance Chain. Its key objective is to foster quick, decentralized (or non-custodial) trading. Maybe predictably, Binance DEX, one of the friendliest decentralized exchanges out there, is the largest decentralized application (or DApp) on it.
However, due to the drawbacks inherent in blockchain networks, the chain may not have much flexibility-smart contracts may greatly overload the network in a scheme designed for quick trading. For example, the CryptoKitties incident took the Ethereum network to a standstill at the height of its success.
One of the most daunting challenges to blockchain creation remains scalability, which is what BSC focuses on.
How do I access Binance Smart Chain?
The easiest approach is to use the Binance Chain Wallet, accessible on Chrome and Firefox, to transfer tokens from one chain to another (i.e., BEP-2 to BEP-20 or vice versa). Users can also access BSC through Metamask.