What is the Binance Smart Chain?

The Binance Smart Chain is best described as a blockchain that runs parallel to the Binance Chain. Unlike the Binance Chain, the Binance Smart Chain Bridge Smart Contract Development Services enhances the performance of smart contracts for its functionality and compatibility with the Ethereum Virtual Machine (EVM) . The design goal here was to maintain Binance’s high blockchain uptime, while at the same time introducing new smart contracts to the blockchain.
Essentially, both blockchains work side by side, and it’s worth noting that the Binance Smart Chain is not what’s known as a Layer 2 or off-chain solution for scalability. Rather, it is an independent blockchain that can work even if the Binance chain is disconnected. However, both series are very similar in design.
As the Binance Smart Chain is compatible with the Ethereum Virtual Machine, it includes support for the rich ecosystem of Ethereum tools and their decentralized applications. In theory, this makes it easier for developers to move their projects out of Ethereum, and for users, it means apps like MetaMask can be easily configured to work with the Binance Smart Chain. That’s a fact — it just takes a little tweaking to a few settings, and you can check out Using MetaMask with Binance Smart Chain to get started.

How does the Binance Smart Chain work?
Compatibility
Binance Smart Chain achieves block generation time of around 3 seconds with Stake Binding Proof Compatibility Algorithm. Specifically, the chain uses a Proof of Authority by Stake ( PoSA ), where participants store BNB to become validators. And if they display a valid block , they get a transaction fee of the transactions included in the block.
Note that, unlike a lot of protocols, there is no block support for newly minted BNBs, because BNBs are not inflationary. On the contrary, the supply of BNB coins decreases over time, because the Binance team regularly performs coin burning .

Compatibility between the two series
The Binance Smart Chain was envisioned as a standalone, and at the same time complementary, system to the existing Binance Chain. The design also uses a dual-chain architecture , where the idea is that users can seamlessly transfer assets from one blockchain to another. In this way, a trader can enjoy fast trading on the Binance Chain, while powerful decentralized applications can be built on the Binance Smart Chain. Through this interoperability, users are exposed to a large system that can accommodate a huge number of use cases. Cross chain bridge development
BEP-2 and BEP-8 tokens from the Binance Chain can be exchanged for BEP-20 tokens, the new standard introduced for the Binance Smart Chain. Have you read Introduction to ERC-20 Tokens ? If you have, you will already be familiar with the BEP-20 format, which uses the same functionality as its Ethereum counterpart.
To transfer tokens from one chain to another (i.e. from BEP-2 to BEP-20 or vice versa), the easiest way is probably to use the Binance Chain wallet available on Chrome and Firefox . You can see Using the Binance Chain Extension Wallet for some instructions.

Decentralized Finance in the Binance Smart Chain
You probably know that a number of digital assets, such as BTC , LTC , ETH , EOS , or XRP , are already on the Binance Chain as “linked currencies”, For example, you may decide to reserve 10 bitcoins to receive 10 BTCB on the Binance Chain. At any time, you can trade your 10 BTCB for 10 Bitcoin, which means that the BTCB price should closely follow the original Bitcoin price.
With this, you are effectively transferring these assets to the Binance Chain. You can see the explanation of Bitcoin token on the Ethereum platform .
Due to the flexibility offered by the Binance Smart Chain, assets from a number of different chains can be used in the growing decentralized finance space. For example, apps like PancakeSwap allow users to trade assets on a non-trust basis (much like Uniswap ), engage in payouts , and vote on offers. Similar projects include BurgerSwap and BakerySwap (if you’re new to cryptocurrency,Build a cross chain bridge know that we’re big fans of food-branded decentralized exchanges).

closing thoughts
The Binance Smart Chain significantly expands the functionality of the original Binance Chain, and joins a set of state-of-the-art protocols designed to bridge the gap between multiple blockchains. Although it is still in its infancy, its promise of BNB storage along with compatibility with the Ethereum virtual machine makes the platform an ideal engine for developers who are building robust decentralized applications.

Do you have questions about the Binance Smart Chain? Visit the Ask Academy platform , where the Binance community will answer your questions. You can go deeper into the technical aspects by looking at the technical guide .

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