Brief introduction to the BSC network

Binance has introduced the Binance Smart Chain (BSC), a dual-chain concept aimed at enabling smart contracts and decentralized applications (dapps). This concept signifies a significant advancement in the blockchain domain.

Binance Chain

Binance Chain, the original network, was designed for secure and fast digital asset exchange, based on matching engines built on distributed consensus algorithms. Before the introduction of the dual-chain concept, all trading functions and transaction storage were conducted on the Binance Chain.

What is Binance Smart Chain (BSC)?

Binance Smart Chain (BSC) represents a new parallel blockchain to the Binance Chain. It is designed to be compatible with the Ethereum Virtual Machine (EVM), enabling the development and deployment of DApps on Ethereum using Binance's new blockchain.

BSC enhances functionality and compatibility with the EVM and supports Ethereum tools and DApps. It also allows cross-chain transfers and the creation of pegged coins, known as BEP 20, similar to ERC 20 tokens.

Binance Chain Vs Binance Smart Chain

Binance Smart Chain serves as a parallel chain to Binance Chain, with the aim of increasing exchanges on Binance.

The highlights of both the Binance Chain includes:

• BEP-2 Tokens

• Pegged coins

• Governance

• Orderbook or match engine

• Cross-chain transfer

• Proof of Stake

• BFT for Binance Chain

While Binance Smart Chain offers:

• 5-second block time

• Cross-chain transfer

• EVM compatibility

• Cross-chain contract events

• Proof of Stake Authority

How does Binance Smart Chain (BSC) Work?

Consensus Algorithm

The Binance Smart Chain operates using Proof of Stake Authority (PoSA), where participants stake BNB to become validators, allowing BSC to achieve a 3-second block time.

Participants proposing valid blocks earn transaction fees. There is no block subsidy of newly minted BNB, as BNB is not inflationary. Regular coin burns by Binance result in a decreasing supply of BNB over time.

Cross-Chain Compatibility

Binance Smart Chain is a complementary system to the existing Binance Chain, facilitating seamless transfer of assets between blockchain networks. Rapid trading can occur on Binance Chain, powered by decentralized applications built on Binance Smart Chain.

DeFi with Binance Smart Chain

The Binance Smart Chain is proving itself a key player in the DeFi world due to its flexibility in transferring assets from one chain to another.

Platforms like PancakeSwap and Uniswap allow users to exchange assets, engage in yield farming, and vote on proposals, with many DeFi projects operating in a similar manner.

Number of Dapps on BSC

Since its launch on September 1, 2020, the Binance Smart Chain Mainnet has seen a growing number of dapps, with 38 out of 47 being DeFi DApps.

Trust Wallet & Binance Smart Chain

Trust Wallet provides support for Binance Smart Chain through secure storage solutions for BSC-powered digital assets, offering mobile-friendly ways to interact with Web 3.0.

Future with Binance Smart Chain

Binance Smart Chain is set to become a user-friendly alternative to the Ethereum-based DeFi market. With more developers building DeFi DApps on BSC and an increasing user base, this ecosystem is expected to grow significantly.

With a $100 million seed fund for developers building dapps on Binance Smart Chain and high adoption rate, Binance Smart Chain is set to become a market leader in dapp development.