Binance Smart Chain: The Fast and Affordable Highway of the Crypto World
Why is everyone talking about Binance Smart Chain? (And why you should pay attention)
If you’ve been in the world of cryptocurrencies for a while, you’ve surely heard of Binance Smart Chain (BSC). But what makes it so special? Why do so many projects and users choose it? Let’s find out.
What is Binance Smart Chain and why is it so popular?
Binance Smart Chain is a blockchain developed by Binance with the goal of offering fast, affordable, and efficient transactions. Its main appeal is compatibility with the Ethereum Virtual Machine (EVM), which allows developers to migrate or duplicate applications built on Ethereum without major difficulties.
Key features:
- Ethereum compatibility: Supports smart contracts developed for Ethereum, making interaction with popular applications like MetaMask easier.
- Fast and low-cost transactions: Thanks to its Delegated Proof of Stake (DPoS) consensus mechanism, BSC can process transactions in seconds with minimal fees.
- Growing ecosystem: Numerous decentralized finance (DeFi) projects, non-fungible tokens (NFTs), and blockchain games operate on BSC.
- Duality with Binance Chain: Although BSC is independent, it is designed to work together with Binance Chain, offering the best of both worlds: high speed and advanced functionalities.
Who is behind Binance Smart Chain?
Binance, one of the largest cryptocurrency exchange platforms in the world, launched Binance Smart Chain in September 2020. The intention was to create a blockchain that offered a faster and more affordable alternative to Ethereum, without sacrificing smart contract functionality.
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- Binance's vision was clear: to democratize access to decentralized finance and provide a robust infrastructure for the development of decentralized applications.
- Suggested image: An illustration of the Binance team working on the creation of BSC, with design elements from 3block.ai.
How does Binance Smart Chain work?
BSC uses a consensus mechanism called Proof of Staked Authority (PoSA), which combines elements of Proof of Stake and Proof of Authority. This allows block confirmation times of approximately 3 seconds and very low transaction fees.
Additionally, BSC adopts the BEP-20 token standard, similar to Ethereum’s ERC-20, which facilitates the creation and management of tokens within its ecosystem.
Interoperability with Binance Chain allows for smooth asset transfers between both blockchains, expanding possibilities for users and developers.
Where and how can I acquire Binance Smart Chain?
It’s important to clarify that Binance Smart Chain is the blockchain network, while the native token used for transactions on this network is Binance Coin (BNB).
To acquire BNB:
- Register on Binance: The most direct way is through the Binance platform.
- Buy BNB: Once registered, you can buy BNB using various payment options, such as credit cards, bank transfers, or exchanges with other cryptocurrencies.
- Transfer to a compatible wallet: After the purchase, you can transfer your BNB to wallets compatible with BSC, such as Trust Wallet or MetaMask, to interact with decentralized applications.
- Suggested image: Screenshots of the BNB purchase process on Binance and its transfer to a wallet, with design elements from 3block.ai.
Security and relevant events
In October 2022, Binance Smart Chain suffered an exploit on a cross-chain bridge, resulting in the loss of approximately $570 million in BNB. Binance acted quickly, temporarily suspending BSC operations and launching a software update to address the vulnerability. This incident highlighted the importance of security in DeFi platforms and led Binance to implement more robust governance mechanisms.
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Conclusion: Is Binance Smart Chain right for you?
Binance Smart Chain has established itself as one of the main blockchains for decentralized application development, thanks to its speed, low costs, and compatibility with Ethereum. If you’re interested in exploring the world of DeFi, NFTs, or simply looking for an efficient alternative to Ethereum, BSC is an option worth considering.