What is Binance smart chain? More and more people are interested and want to participate in investing in the cryptocurrency market. In order to provide good quality to the investment community, the cryptocurrency market is constantly developing better features and technologies. In today’s article we will learn about binance smart chain!
1 – What is Binance smart chain?
Binance smart chain (BSC) is an improved version of the blockchain that is better upgraded than the previous version of the original Binance Chain. However, BSC is a platform that runs in parallel with the original Binance Chain, not a complete replacement for the original.
BSC offers smart contract and through EVM compatibility with Ethereum.
2 – Highlights of BSC
BSC is compatible with Ethereum via EVM which means Ethereum-based dApps can be swapped over BSC.
BSC and Binance Chain both use the same BNB coin to help create a lot of value for BNB holders in the Binance ecosystem.
3 – How does BSC work?
BSC works using the PoSA (Proof of staked authority) algorithm, which is a combination of Proof of stake and Proof of authority.
In the BSC system, the users who authenticate to the network are those who have staked a certain amount of BNB.
They then receive transaction fees after validating the confirmed blocks.
Thanks to the compatibility, dApp creators on other blockchains can transfer EVM to BSC easily.
4 – The main advantage of BSC
Short block generation time.
Low transaction fees, allowing new users to convert assets quickly with low transaction fees.
BSC is compatible with EVM and inter-chain communication improves work efficiency for programmers.
5 – Integrated projects of Binance smart chain
Some prominent projects integrating BSC include: oracle Chainlink project, oracle Band Protocol, Pancake Swap, DODO, MCDEX, Spartan protocol, hard protocol, venus protocol, alpha finance labs, kava, etc.