Binance Chain developers are launching the main Binance Smart Chain network with the ability to stake BNB and develop decentralized Finance (DeFi) applications.
The developers published the Binance Smart Chain White paper in April 2020. Binance Smart Chain is a Binance Chain sidechain for supporting smart contracts. Before deploying the main Binance Smart Chain network, developers launched a test network, checking the security of its interaction with various blockchains, as well as conducting stress tests using competitions.
With Binance Smart Chain, you can develop decentralized applications (dApps) in the Binance Chain ecosystem and create products for the DeFi industry. The infrastructure of this blockchain allows Binance Chain to work with the decentralized exchange Binance DEX and various crypto assets. In addition, the Binance Smart Chain blockchain is compatible with the Ethereum Virtual Machine (EVM), which implies the possibility of integrating Ethereum-based tools.
Another important feature of Binance Smart Chain is the staking of the BNB coin, which is one of the top ten by market capitalization. Thanks to the Proof of Staked Authority (PoSA) consensus mechanism, Binance Smart Chain validators will receive a reward in BNB for completing tasks. This will motivate the members of the network and ensure its continuous operation without reducing the speed of the transaction.
“Binance Smart Chain allows you to develop DeFi services and decentralized applications in the Binance Chain ecosystem. At the same time, Binance Smart Chain has the advantages of a new generation of blockchain: BNB staking, high performance, reduced fees, direct interaction with a decentralized exchange, and much more. There are plans to launch new products in the near future, ” said Binance CEO Changpeng Zhao.
Speaking about the advantages of Binance Smart Chain, the developers noted the following:
Reliability of the blockchain ecosystem. We are talking about a powerful database of developers who support various integrations, including Chainlink, Band Protocol, Swipe, Ontology, Trust Wallet, and about 25 other projects.
High speed of block creation and low transaction fees. In addition to compatibility with the main blockchains, Binance Smart Chain uses a unique PoSA consensus algorithm, which allows you to create a new block every 3 seconds. In addition, the Commission structure significantly reduces costs when using DeFi protocols and decentralized applications.
Access to assets in the Binance Chain network. Binance Chain interacts with the decentralized exchange Binance DEX, and also supports bitcoin, ether, and other well-known cryptocurrencies. The list of assets available in Binance Smart Chain for DeFi protocols will be expanded.
The launch of Binance Smart Chain comes amid the rapid development of the DeFi industry, which is changing the perception of Finance, attracting more attention to blockchain and cryptocurrencies. In July, Binance Smart Chain specialists connected Chainlink oracles to expand opportunities in the DeFi industry, and in August they integrated Band Protocol data oracles to protect users from possible risks.