Binance, a prominent centralized crypto exchange, is also linked to Binance Smart Chain (BSC), a popular layer-1 (L1) blockchain network compatible with the Ethereum Virtual Machine (EVM). In February 2022, BSC was rebranded as BNB Smart Chain to emphasize its independence and decentralized nature, though it is still commonly referred to by both names.
BSC is renowned for its fast and cost-effective transactions, thanks to its optimized infrastructure. This article explores its origins, evolution, and current applications.
The origins of Binance Chain
Binance was founded in 2017 and soon began developing its blockchain ecosystem. Initially, the BNB token was issued on Ethereum and served just as a utility token for Binance users, allowing them to pay fees on the platform.
In 2019, Binance launched its own blockchain, Binance Chain, and migrated the BNB token to it. This chain adopted the BEP-2 token standard and was used for governance, staking, and voting.
In 2020, Binance introduced the Binance Smart Chain, which was later rebranded as BNB Smart Chain in 2022. This new chain supports the BEP-20 token standard with full-scale smart contracts and decentralized applications (dApps) support, while the original chain became known as the BNB Beacon Chain.
BNB Smart Chain vs. BNB Beacon Chain
BNB Smart Chain (BSC) and BNB Beacon Chain have distinct roles within the BNB ecosystem. BSC, launched in 2020, is a full-scale layer-1 network that supports various tokens, coins, and NFTs. Its BEP-20 token standard, similar to Ethereum’s ERC-20, enables smart contracts and dApp development. BNB, the native token of BSC, is used for paying gas fees, staking, and other financial operations.
In contrast, the BNB Beacon Chain, the successor of the original Binance Chain launched in 2019, was created primarily for governance and supported the BEP-2 token format. It enabled transactions, staking, and voting but did not support smart contracts or dApps.
In 2024, BNB Beacon Chain was discontinued, and its features, including BEP-2 token support, were integrated into BSC, unifying both functionalities.
Features of BNB Smart Chain
BNB Smart Chain is a standalone layer-1 blockchain, unlike layer-2 solutions that rely on the Ethereum mainnet. It offers extensive support for programming, dApp maintenance, and the creation of other crypto assets. The most trending BSC dApps can be seen below, with data from its official website, BNB Chain.
BSC hosts thousands of tokens and NFTs, with over 300 publicly traded and more than 5,000 dApps compatible with the chain, according to DappRadar. New dApps, tokens, and NFT collections are frequently issued, contributing to a dynamic ecosystem.
Using BNB Smart Chain
BSC’s high transaction speed and low gas fees make it an attractive option for dApp users, developers, NFT creators, traders, and blockchain enthusiasts. To start using BSC, users can follow these steps:
- Create a BNB wallet or import an existing one. The MetaMask app is a popular choice for managing BNB wallets.
- Obtain a BSC RPC node, for example, by registering with GetBlock to obtain a free node endpoint, which is required to connect with the blockchain.
- Integrate with MetaMask using the endpoint URL and BSC network parameters from its official website to enable smart contracts and transactions.
- Explore BSC Ecosystem: dApps, NFTs, tokens, and other assets using platforms like DefiLlama and DappRadar to stay updated. Users can also try BSC methods to explore the network’s capabilities.
Challenges and solutions
While BSC is efficient and cost-effective due to its well-designed infrastructure, concerns have been raised about its centralization, as it relies on a limited number of validators. This centralization can be seen as a trade-off for its performance benefits.
Additionally, there have been instances of poor network performance or unavailability, causing users to face difficulties accessing their funds and assets. A potential solution is using private BSC nodes, which offer stable communication between clients and the blockchain, mitigating performance issues.
That’s where the Web3 infrastructure development can help. GetBlock supports Web3 developers by providing accessible BSC nodes, both shared and dedicated, depending on the scale of the blockchain project. They can start with the free option, having 40,000 requests per day, and purchase more as they’re scaling up.
Those who sign up in August 2024 and purchase a shared node, can have a 30–50% discount for the first month!
Conclusion: BSC and Web3 development
BNB Smart Chain, starting as a Binance ecosystem project, has evolved into an independent, robust blockchain network with extensive support for smart contracts, dApps, and various crypto assets. Despite concerns about centralization, BSC is a popular choice for developers and users due to its speed and low costs.
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