What is Binance Smart Chain Network? Why is it trending?
Binance Smart Chain Network is a new smart contract-enabled blockchain that works as a parallel chain to Binance Chain. Binance Smart Chain solutions are was built to be Ethereum Virtual Machine (EVM) compatible in order to provide developers with the ability to easily deploy DApps built for Ethereum on Binance’s new blockchain.
Binance Smart Chain solutions continue to play a central role in the sustained growth of DEXs. Since September 2020, the new platform users executed more than 5 million trades and spent $456K in gas fees. At the same time, Ethereum DEX users have executed 46 million trades since 2015, but have spent about $207 million in gas fees. By comparison, BSC users pay less than $0.10 per transaction, while Ethereum DEX users pay $4.5 per transaction — making BSC 49x cheaper. Binance Smart Chain solutions now host popular trading platforms including IDEX, Trust Swap, and Pancake Swap.
Binance smart chain development solutions will be an opportunity for blockchain users to come to a new decentralized machine with many valuable assets provided by the popular Binance Chain and Binance exchange.
We can mention some of the advantages of the Binance Smart Chain:
- A feature-rich and fast-growing digital asset ecosystem powered by Binance DEX, the leading decentralized exchange.
- Very Cheap transaction fees that reach as low as one cent.
- Superfast performance with a network capable of producing a block every 3 seconds
- Cross-chain decentralized finance mechanisms that increase DeFi interoperability
- A supportive Binance ecosystem that funds and bootstraps many DeFi projects
- A growing ecosystem of millions of users across Binance.com and Binance DEX
- A network of major crypto projects already collaborating with BSC
Potentials of Binance Smart Chain solutions
As reported in 2019, Ethereum, TRON, and EOS make up to 98% of the Dapps. Ethereum has always led in every category Among them including active decentralized apps, active users, and transaction volume. In addition, there are other serious projects, including Steem, NEO, Ontology, Waves, etc.
Binance Smart Chain, with its advantages, as well as an extensive network of partnerships, is focusing on developing in a very large market, with the expectation of beating many competitors and taking the market share for itself.
Even before the launch of the Binance Smart Chain main, the Binance Chain community has been working on various crypto projects to develop a powerful blockchain platform.
Some of the collaborators of Binance Smart Chain Network that can be mentioned are:
– Blockchain Infrastructure and Tools: ChainLink, Trust Wallet, Ankr, BSCScan, Bitquery.io, MathWallet, MyWish, Band Protocol, CertiK, Torus, etc
– DeFi: Swipe, Aave, 1inch.exchange, WazirX, DODO, dForce, Bounce.finance, Spartan Protocol, MCDEX, Cream, ForTube, DeBank.
– Cross-Chain Liquidity: RenVM, network, Thorchain, Ferrum.Network, Alpha Finance.
Binance Smart Chain is an innovative solution to bring programmability and interoperability to Binance Chain. Binance Smart Chain solutions rely on a system of 21 validators with Proof of Staked Authority (PoSA) consensus algorithm that can support short block time and much lower fees as few ascents. As a result, decentralized applications or commonly called dapps, built on Binance Smart Chain have already experienced substantial user uptake, with DeFi apps leading the foray.
Binance Smart Chain supports a reduced block time and much lower trade fees with a system of 21 validators with Proof of stake. The EVM compatibility allows most of the Ethereum tools and DApps at faster rates. In the trending platform, the most bonded validator candidates of staking in the platform will become validators and produce blocks. The double-sign detection and other slashing logic assure complete security, stability, and chain finality.
Additionally, BSC supports cross-chain transfers and allows for the creation of “pegged coins” (tokens pegged to the BSC chain), including BTC, ETH, TRX, and more. Pegged coins operate as BEP-20 tokens on Binance Smart Chain Network, similar to Ethereum’s ERC-20 tokens. Moreover, Binance Smart Chain’s BEP20 token standard enables developers to easily create and issue tokens that can represent a very large range of asset types.
The binance smart chain development also supports EVM-compatible smart contracts and protocols. Here due to native support of interoperability cross-chain transfer and other communication are possible. On both chains, Binance DEX remains a liquid venue of the exchange platform of assets. This dual-chain architecture of the Binance Smart Chain will be ideal for users to take advantage of the superfast trading on one side and build their robust decentralized apps on the other side.
To sum up
The Binance Smart Chain will be:
- A self-sovereign blockchain Provides security and safety with elected validators.
- EVM-compatible: Supports all the existing Ethereum tooling along with faster finality and cheaper transaction fees.
- Interoperable: Comes with efficient native dual chain communication; Optimized for scaling high-performance dApps that require fast and smooth user experience.
- Distributed with on-chain governance: Proof of Staked Authority brings in decentralization and community participants. As the native token of Binance, BNB will serve as both the gas of smart contract execution and tokens for staking.
Dapps development on the binance smart chain network
One of the trending dapps is the blick. Blink is a term representing the partnership of WINK and binance. The platform is one of the mining, gaming, and gambling trends in the market.
This is one of the popular topics in the market today. One of the brand new dapps built on the binance smart chain in Pyra. It generates BNB by holding tokens.
Venus is a robust decentralized application that facilitates lenders and borrowers to enjoy high liquidity with its money market algorithm and stablecoin protocol.
Jetfuel as a yield farming and aggregator platform hold the advanced and latest features of the most successful DeFi projects to enhance the working.
The Pancake Bunny is the latest and growing DeFi yield aggregator in the market which helps farmers to leverage their yield-seeking opportunities. It is used for PancakeSwap.
C.R.E.A.M. Finance is a blockchain agnostic, decentralized peer-to-peer lending platform based on a fork of Compound Finance that bridges liquidity.
PancakeSwap is also an Automated Market Maker where you can do token swaps for BEP-20 tokens, take part in the lottery, win NFTs, participate in token sales, etc.
Streetswap is an Automated Market Maker (AMM) contract built on Binance Smart Chain that creates an ideal environment for traders.
Binance smart chain development
Digital currency markets are recovering after a massive selloff that took place throughout the new year. Bitcoin has rebounded past the $50,000 mark, and the tokens that belong to two competing chains, Ethereum and BSC, have also improved their price performances.
The attraction towards Binance smart chain even leads the conversation around the Ethereum network to shift. The viability of the network, which is known as the original smart contract-enabled blockchain network, became uncertain. A growing number of reports emerged claiming that DeFi developers were looking beyond Ethereum and adopting binance smart chain development solutions that could support higher numbers of transactions without skyrocketing fees or vastly slowed transaction times.
As one of the pioneers in cryptocurrency development shamla tech provides robust Binance Smart Chain solutions to help you sustain the advancements in the market and be always with the trends. The developers here equipped with the skill to easily adapt to the latest trends in the digital world to help you attain your goal easily and trouble-free.