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BNB Chain: Binance To Unleash Layer-2 Protocol opBNB

Egu John
Coinmonks
Published in
5 min readJul 4, 2023

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In February 2022, Binance announced the rebranding of Binance Chain and Binance Smart Chain to BNB Chain, which stands for “Build and Build.” The layer-1 or underlying blockchain for Binance was relaunched as part of a strategy to connect it to the protocol’s governance token, BNB, in order to strengthen and further decentralization. Binance is yet set to unleash a layer-2 solution OpBNB, designed based on the Optimism OP Stack, an open source codebase, with modifications to meet the needs of BSC.

What is BNB Chain?

BNB Chain is an Ethereum Virtual Machine (EVM) compatible blockchain, designed to support smart contracts in order to compete with the Ethereum blockchain, which is the leading blockchain for DeFi applications.The chain offers a lower transaction fee and higher transaction speed environment to DeFi users, while enabling developers to easily expand or migrate their decentralized applications (DApps) to the new chain.

Over the years, we have all noticed that as blockchain networks gain popularity, transaction fees tend to rise due to increased usage. This rise in fees is exponential with the rise in usage and the decrease in scalability.

Ethereum’s Layer 1 (L1) faced this challenge, leading to the emergence of alternative Layer 1 solutions such as Solana, BNB and FTM. Ethereum’s response was the implementation of Layer 2 (L2) solutions, which are chains built on top of the L1. These L2 solutions were made to handle computations off-chain and then post the data and proofs on the L1.

Facing this same issue or should we say preparing for such an eventuality, Binance had to introduce what we now know as OpBNB.

opBNB, A Layer-2 scalable Protocol Built On The BNB Chain

BNB Chain made an announcement in June 2023 to introduce their very own L2 solution, opBNB, in a move to further scale BSC. OpBNB is an optimistic roll-up, which is a type of L2 solution. It assumes the accuracy of the data posted by rollups until proven otherwise. Once verified, transactions are re-executed to ensure the correct state.

Given that BNB Chain is currently one of the most widely used chains, with Binance processing millions of transactions daily, the introduction of an L2 solution like opBNB makes strategic sense. It aims to enhance scalability, security and performance while remaining built on top of the existing BNB Chain.

OpBNB adopts the Optimistic rollup architecture, abstracting the execution layer into its own layer, while the remaining blockchain functions are handled by the L1, in this case, the BNB Smart Chain. The opBNB layer processes transactions off-chain and posts transaction data back onto the L1 as calldata, enabling higher transaction speed and lowered gas fees for users on the L2. Just like other rollups, opBNB uses the gas token of the L1 chain, which is the BNB token.

These optimizations enable opBNB to allegedly achieve 4,000 transactions per second on the chain and keep transaction fees on the chain to a mere USD 0.005. The chain’s high transaction processing ability and low transaction fees could make it the perfect chain for gaming, which is a key sector that opBNB seems to be targeting.
The opBNB testnet has been live since June 19, 2023, and is open for feedback from developers and testers.

Benefits Of opBNB To BNB Blockchain And Its Users

opBNB, A Layer 2 protocols built on the BNB Chain offer several benefits that address the limitations of the base layer (Layer 1) blockchain. Here are some key advantages:

1.Scalability: One of the primary benefits of opBNB is improved scalability. By moving transactions off the main blockchain or by batching them together, opBNB can significantly increase the number of transactions to 4,000 per second. This scalability enhancement allows blockchain networks to handle a larger volume of transactions, making them more practical for real-world applications with high transaction throughput requirements.

2.Reduced Fees: opBNB will lead to reduced transaction fees compared to executing transactions directly on the Layer 1 blockchain(BNB Chain). By offloading transactions or aggregating them into batches, opBNB can achieve cost savings in terms of gas fees or transaction fees. Lower fees make blockchain technology more accessible and affordable for users, encouraging broader adoption and usage.

3.Faster Transaction Confirmation: opBNB will enable faster transaction confirmation times compared to Layer 1 blockchain. By leveraging optimistic rollups, transactions can be processed and settled more quickly, as they are not subject to the same constraints and latency of the main blockchain. This speed improvement is crucial for applications that require near-instantaneous transactions, such as payments or decentralized exchanges.

4.Enhanced User Experience: opBNB protocols can significantly improve the user experience by reducing the time required for transaction confirmation and lowering fees. Faster and cheaper transactions make blockchain applications more user-friendly and practical for everyday use.

By offering scalability improvements, reduced fees, faster confirmations, enhanced user experience, and compatibility with existing blockchains, opBNB protocol contribute to the broader adoption and usability of Blockchain technology.

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Egu John
Coinmonks

Written by Egu John

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Blockchain Content Creator

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