What is Binance Smart Chain?
Last September, Binance launched its own chain, Binance Smart Chain (BSC), compatible with EVM’s virtual machine Ethereum. Thanks to that, BSC is also compatible with Ethereum-based tools such as Metamask, Trust Wallet, etc.
Advantages and disadvantages
Thanks to BSC’s Ethereum-compatible feature, Ethereum users do not need to use new wallets, or other supporting tools, to still use this Chain. While other Blockchain like Tronx, users have to download a new toolkit (TronLink Wallet, Tronscan, …)
Binance Smart Chain currently works with 21 validators, and the special thing is that these 21 validators are all selected by Binance, which makes Binance Smart Chain “centralized”, controlled by one entity instead of non-binary. centralized like other Chains.
Since then, some people have assumed that BSC is a Chain that is being manipulated by Binance, they can do anything like take users’ funds, cause double spending, etc. However with what Binance and CEO CZ possessing their vision will reach much further.
Why Binance Creates Binance Smart Chain (BSC)
Not only Binance but other exchanges in Asia such as India, China, and Japan are considered by many to be “Fake Volume”.
However, a convincing proof is that while decentralized exchanges like Uniswap or SushiSwap are becoming more and more popular, Binance is still the largest user of the Ethereum network. This is clearly not a “Fake Volume”, Binance actually had to pay 3% gas fees on the Ethereum network, which is not a small number to be able to “Fake”.
And while some argue that BSC is trying to beat the competition and force people to use BSC’s support tools, according to the author, based on the data, that Binance just doesn’t want its users to pay 3% gas fees for withdrawals, that’s not counting the fees that users use to transfer money to Binance.
Investors can find out more information about transactions, fees, etc. through: bscscan.com
In addition, Binance Smart Chain is EVM-compatible, making it possible for Ethereum-based dApps to convert to Binance Smart Chain with only minor changes. For BC and BSC both use the same Native Token as BNB, which helps create a lot of value for the Binance Chain and BNB Holder ecosystem.
Strengths of Binance Smart Chain
BSC can be seen as a “centralized” Folk version of Ethereum, but it is fully compatible with Ethereum, which means developers on Ethereum can develop on BSC easily, Dapps on Ethereum can also work on the BSC platform with just a little modification.
And especially, 30% of the transaction fees used by users will be returned to the developer, which creates more impetus for development, creating more useful applications on BSC.
At the same time, the cost to deploy a contract on BSC is x200 times cheaper than on Ethereum, which makes for a great testing environment for developers, which BSC has provided developers with full conditions include:
- Large number of users.
- The cost of building smart contracts is cheap.
- Get rewarded if the smart contract is really used a lot.
Binance Smart Chain and Binance Exchange
The combination of Binance Smart Chain and Binance makes it easier and less expensive to swap and store tokens of other chains, which is not easy and expensive to do on the network. Ethereum.
While this is not a decentralized and “trustless” ethos, what BSC offers is convenience, with the end-users assured.
At the same time, BSC will also allow developers of Lending Pools, AMM, etc. to support a new “cross-chain” asset class, such as DOTB (Binance Wrapped Dot) or ETHB.
Although it has only been launched for 8 months, the milestones achieved by Binance Smart Chain are very respectable, the number of transactions on BSC is now close to the number of transactions on Ethereum. Binance Smart Chain is gradually gaining its position in the hearts of investors and the Crypto community. In the not too distant future, perhaps Binance will stand at the top of the Crypto ecosystem.
If this article brings useful information, please share it with everyone you know.