What is BSC? How does it work? What are its benefits over the other blockchains?
You’ve probably heard of the word Binance Chain, the home of the BNB currency. It’s specified for ultra-fast trading. So, it had to make certain trade-offs-one being, which was not as flexible as other blockchains. Therefore, Binance Smart Chain has been built to create a new blockchain with a full-fledged environment for developing high-performance decentralized applications.
When was BSC launched?
Binance Chain was launched by Binance in April 2019. Its primary focus is to facilitate fast and decentralized trading. Perhaps obviously, the biggest decentralized application (or DApp) on it is Binance DEX, which has a friendly decentralized environment among the exchanges out there. It can be utilized through a web interface at binance.org or via its native integration with Trust Wallet.
So far, how can BSC be described?
Binance Smart Chain (BSC) is described as a blockchain that runs equally to the Binance Chain. Unlike Binance Chain, BSC flaunts the functionality and compatibility of a smart contract with the Ethereum Virtual Machine (EVM). The design goal here was to leave the high throughput of Binance Chain intact while introducing smart contracts into its ecosystem.
Binance Smart Chain enormously extends the functionality of the original Binance Chain and joins a range of cutting-edge protocols designed to bridge the gap between various blockchains. Although, still in its infancy, the promise of BNB staking alongside EVM compatibility makes the platform an ideal engine for developers building powerful decentralized applications.
In addition, A considerable number of digital assets — such as BTC, LTC, ETH, EOS, or XRP already exist on Binance Chain as “Peggy coins.” These are tokens that are pegged to assets on their native chains. For instance, you might decide to lock up 20 BTC in case of receiving 20 BTCB on Binance Chain. Whenever you want to, you can trade your 20 BTCB for 20 BTC, which means that the price of BTCB should closely track that of native BTC. That affects porting these assets onto Binance Chain.
In conclusion, Binance Smart Chain was envisioned as an independent but complementary system to the existing Binance Chain. The dual-chain structure is used, with the idea being that users can seamlessly transfer assets from one blockchain to another. In this route, rapid trading can be enjoyed on Binance Chain, while powerful decentralized apps can be created on BSC. Thus, users are exposed to a vast ecosystem that can cater to an uncountable amount of use cases.