Binance Smart Chain — why does this ecosystem is so powerful?

Practically, everyone who has ever bought some cryptocurrencies, heard about Binance.

It is the biggest crypto exchange, every second there are proceeded transactions on a big scale. Moreover, binance also implemented own blockchain.

Binance chain was launched in 2019, allowing quick trading. However it had a lot of limitations, chain did not have flexibility in managing smart contracts. It should have been changed… and it happened.

Agenda:

• intro,
• what is BSC?
• how it works?
• cross chain,
• token standards,
• conclusion.

What is BSC?

The best description of Binance smart chain, is that it was built in parallel to the Binance chain.

Main purpose of Binance smart chain is to allow interactions with smart contracts, by adding compatibility with ethereum virtual machine.

Both mentioned blockchains operate side by side, there is no division on layer one and layer two.

This independence allows BSC to work even when binance chain is offline.

Ethereum Virtual machine gives a huge advantage for each blockchain which is compatible with it.

For example, it allows to interact with crypto wallets adjusted for such a technology, like MetaMask. As MetaMask opens the doors for wide variety of dapps, BSC is gaining a lot.

How it works

BSC adds blocks in every 3s, by using proof of stake consensus model. Users who stake BNB (native coin in BSC) receive fees after proposing valid block.

What is worth of mentioning, BNB is not inflationary. It’s amount is decreased constantly by burning tokens.

Cross chain

Binance released two independent blockchains, both of them have own use case.

Binance chain helps in quick trading of assets, Binance smart chain allows building decentralized platform upon of that.

Token standards

Binance also introduced custom token standards. It is commonly known that in Ethereum ecosystem, are available standards like: ERC-20, ERC-11555, etc.

In BSC, we can find BEP-2, BEP-8, BEP-20. The last one is very familiar with ERC-20.

Conclusion

As Binance exchange is growing dramatically, it can be expected that their native chain will be also developed to catch up the level they are approaching.

It would be practically impossible, if Binance will be the top platform, but blockchains will be neglected.