Binance Smart Chain, NFTs and How to earn passive income with Crypto
In the world of crypto you have to be constantly learning. New terms will always emerge, and it is up to you to keep up with the trends, else you are bound to lose out on opportunities. Yes!
And especially if you are based in Africa, chances are most of these “happenings” are unlikely to appear in your Social media timeline.
Although Crypto in Africa, is taking on, you still want to dive all in into “DYOR”. You want to know about Fan tokens, Metaverse projects and anything “hot” in this space. It could literally change your life.
Too much?
How about the basics?
Let’s talk Binance Smart Chain.
Binance Smart Chain for dummies
To fully understand all about Binance Smart Chain, we have to “go down the memory lane”, back to 2018.
It was April 2018. Binance decides to launch their own blockchain, “Binance Chain”.
And why not; Binance was already making headlines among crypto exchanges despite being in existence for just about 10 months.
The key idea behind Binance Chain was to create a high-speed blockchain able to support large transactions.
They did this using the “Tendermint Consensus Model” providing instant finality, and only focused on its primary app “Binance Dex”.
On the other end, Defi on Ethereum was thriving while Binance Dex barely received any recognition.
However, Binance Chain team quickly noticed that the missing factor in Binance Chain was the inability to run Smart contracts, and allowing users/teams to deploy their applications.
Smart contracts are computer programs/protocols for automated transactions, stored on a blockchain that run in response to meeting certain conditions. It’s what experts define as “Code is law”.
Essentially, Binance decided to launch another blockchain called “Binance Smart Chain” in Sept 2020 rather than add the “smart-contract” feature on Binance Chain.
Binance Smart Chain in its form was programmable and supported smart contracts.
Nevertheless, it is of the essence to understand that building a completely new smart contract from scratch takes lots of time and research.
Consequently, Binance decided to leverage users’ and developers’ knowledge and familiarity with Ethereum and fork (split into two) Ethereum’s “GETH”.
However, Binance was keen to optimize its own chain with low fees and higher transactions, hence giving it an advantage over the Ethereum blockchain.
Binance achieved this by foregoing decentralization and censorship resistance properties of the network through replacing Ethereum’s Proof of Work Consensus Model with Proof of Stake Authority Model.
And that’s how Binance Smart Chain came to be.
NFTs and its Benefits
To most people, NFTs seem like a big joke.
I mean, who would take a bunch of “apes jpegs” seriously? And they’re justified, but not in the long run. Why? Because the true essence of NFTs lies in the technology behind it.
And this “technology” is the core functionality to Web 3.0 adoption.
What technology?
The technology that traces the ownership and transaction history of each NFT entity, with a code and unique ID that cannot be duplicated.
NFTs bring forth the importance of ownership, authenticity, and originality in blockchain technology.
https://twitter.com/cryptolord254/status/1549710048112287747
Benefits of NFTs
- Ownership- Proof of Ownership is one of the key essentials in a blockchain. And the fact that NFTs are indivisible, it is practically impossible to share an NFT among different owners. Additionally, real owners feel safe and secure from the concerns of fake duplicates.
This especially comes in handy in the world of art. Just because someone can download some “illusions” of the Mona Lisa, doesn’t necessarily give them ownership.
2. Authenticity- Being that NFTs are created on a blockchain, they come with unique traits, hence providing a “value” aspect. It is this feature that ensures scarcity of particular NFTs with “highly unique” features and hence increasing value.
And with the immutable nature of the blockchain where NFTs are stored, you can be assured that your NFTs will not lose authenticity. It is impossible to modify, remove or replace.
3. Transferability- This factor comes at play in the Gaming Industry. Gamers are constantly purchasing in-game assets to leverage their gaming experience.
However, it was impossible to make use of these in-game assets outside the specific gaming environment.
With NFTs, Game designers and developers can issue these in-game items in form of NFTs, and players are able to hold them in their digital wallets.
Additionally, it is possible to use the assets outside of the gaming environment, or also sell them. And with the use of Smart contracts, ownership transfers are made easy.
4. Establishment of an economic opportunity- Content creators(mostly digital artists) often face the challenge of platforms taking their profit. With NFTs in place, it could help a create a completely new creator economy; where creators can avoid transferring ownership to platforms that they use to publicize content.
Earning Passive Income with Crypto
The good thing with Crypto is that you can earn some passive income while hoDLing. It definitely sounds like hitting two birds with one stone.
That’s cause it actually is.
While your bank might be trying to give you a small interest, it often comes out as a mockery.
What exactly are you supposed to do with a 4% Annual interest?
And one of the best places to earn guaranteed higher interests, is with Binance Earn products.
Binance Africa is not only a “Buy Bitcoin” platform, you can do so much with your crypto portfolio.
Binance Earn features crypto products that will earn you a decent APY usually ranging from 5% APY even up to 102% APY.
You are able to choose your desired product according to your risk appetite. (Products with a higher APY come with high risks).
However, most of Binance Earn products are risk free.
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Disclaimer: This article is meant for educational purposes only and should not be construed as an investment advice.
Affiliate Disclosure: This blog post may contain affiliate links.
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