What is the Binance Smart Chain (BSC)?
If you haven’t heard of this very popular chain, allow us to introduce it to you!
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers and retailers.
Hello, dear readers! Today we’re going to take an in-depth look at both the Binance Chain and the Binance Smart Chain. If you’re new to the cryptoworld, you might only be familiar with Bitcoin or Ethereum, but there are a lot of other cryptocurrencies and blockchains out there! Another leader in the field is Binance and they have not just one but two blockchains! Read on to learn more.
Binance Smart Chain (BSC)
To begin with, we will introduce the Binance Chain. This was the first blockchain Binance released in 2019. BNB is the native currency of the Binance Chain. The chain itself was optimized for fast trading. However, from a programming point of view, it was less flexible than other blockchains.
To compensate for these shortcomings, the Binance Smart Chain (BSC) was launched in 2020. The Binance Smart Chain contains all the features for developing high-performance decentralized applications (dApps). Built for cross-chain compatibility with the original Binance Chain, users can benefit from both blockchains.
Among the many ways we could explain what the Binance Smart Chain is, the most appropriate description is that it’s a blockchain that runs parallel to the Binance Chain. Unlike the Binance Chain, the Binance Smart Chain enables smart contracts and boasts compatibility with Ethereum Virtual Machines (EVMs). The purpose of the Binance Smart Chain is to maintain high throughput and to introduce smart contracts to the ecosystem.
An important point is that these two blockchains operate in parallel. It is worth noting that the Binance Smart Chain is not a typical Layer 2 or off-chain scalability solution. It is an independent blockchain that works even when the Binance Chain is offline. Nevertheless, the design structures of the two chains are quite similar.
Binance Smart Chain Features
The Binance Smart Chain has three main features. The first is compatibility with EVM. The developers of the Binance Smart Chain aimed to create a chain that could compete against Ethereum. They wanted to implement a development environment that was very similar to Ethereum in order to attract developers who are already familiar with the Ethereum environment. BSC developers are able to easily port their existing projects to Ethereum, and Ethereum-based applications, such as Metamask, can be used on the Binance Smart Chain.
The second feature is the much lower cost of gas compared to Ethereum. A big reason many developers considered leaving Ethereum was the continually rising gas prices. The BSC is a staggering 92% cheaper than Ethereum which significantly reduces the financial burden for users.
Third and finally, the BSC is compatible with external assets using the Binance Bridge. Through the Binance Bridge service, assets created in the ERC-20 Ethereum-based and TRC-20 Tron networks can be wrapped, transferred to the Binance Smart Chain, and used. Also, there are no conversion fees. Assets created on the existing Binance Smart Chain can be moved freely without the need for wrapping. Due to this compatibility, the Binance Smart Chain has been selected as the most suitable chain for building a DeFi ecosystem, especially one that requires active asset movement.
We hope that has cleared up some of the confusion around the Binance Chain and the Binance Smart Chain. While both have their uses, it’s important to remember that they run separately but parallel to each other. Thanks for stopping by and see you next time!
