“Binance Smart Chain makes it possible for developers around the world to build DeFi services and many more dApps within the Binance Chain ecosystem, while delivering various benefits such as an all-new method for staking BNB, high performance, lower fees, direct connection with fast DEX and more,” said Binance CEO Changpeng Zhao.
Binance Smart Chain runs alongside the Binance Chain blockchain. The key difference is that it has smart contracts (like Ethereum) that allow users to run applications on the blockchain.
While Binance Smart Chain is self-custodial, the blockchain is only partially decentralized. There are centralized elements to it, helping the blockchain run at fast speeds, with a high capacity. The platform touts fast block production rates—once every three seconds—and low transaction fees for DeFi and dApp protocols.
“Designed to run in parallel with Binance Chain, Binance Smart Chain retains the former’s fast execution times and low transaction fees while adding Smart Contracts functionality to support compatible dApps,” said the announcement.
One of the platform’s key features is the ability for users to stake Binance Coin (BNB), the native token of both Binance Chain and Binance Smart Chain, on the blockchain. Using the proof-of-staked-authority consensus mechanism, validators will be able to earn BNB rewards for helping to maintain the network.
Binance Smart Chain is compatible with the Ethereum Virtual Machine (meaning it supports applications that currently work on Ethereum) and features cross-chain infrastructures, where blockchains are interconnected, bringing together various Binance Chain assets.
Additionally, Binance Smart Chain also “features a powerhouse of blockchain collaborators” such as Chainlink, Band Protocol, Swipe, Ontology, Trust Wallet and more.
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