The development team of Binance Chain (BCDC) has proposed the idea of a parallel blockchain to the current one to support a Smart Contract “friendly” function.
This is the so-called Binance Smart Chain, which will complement the one currently used for the DEX, in order to preserve the high performance of the blockchain.
BCDC has also released a whitepaper detailing this proposal, revealing that Binance Smart Chain will bring the programmability and interoperability of the Ethereum Virtual Machine (EVM) onto Binance Chain.
Binance Smart Chain will thus be an autonomous blockchain, based on Proof of Staked Authority, and compatible with EVM so as to support all the tools existing on Ethereum. This way all protocols and smart contacts compatible with EVM will be supported on this new blockchain.
It also promises faster execution times and lower transaction fees.
It will be based on a system of 21 validators using PoSA as a consensus algorithm, offering faster block confirmation times and lower transaction fees.
The native BNB token will act as gas for the execution of smart contracts as well as a token for staking.
The development community of Binance Chain said:
“At the heart of Binance Chain is a highly performant matching engine built on a distributed consensus that aims to replicate the < 1-second trading efficiency of current centralized exchanges. Unfortunately, the Binance Chain has not given developers a lot of freedom to build decentralized applications (dApps) on top of it without a Turing-complete(ish) virtual machine in the application layer.
Today, the Binance Chain development team proposes the idea of a parallel blockchain of the current Binance Chain to retain the high performance of the native DEX blockchain and to support a friendly Smart Contract function at the same time
This dual-chain architecture will be ideal for users to take advantage of the fast trading on one side (Binance Chain) and build their decentralized apps with smart contracts on the other side (Binance Smart Chain). BNB holders who are interested in staking BNB can also support the development of Binance Smart Chain and earn rewards. In the long term, we hope to continue working closely with the blockchain community to strengthen our infrastructure for digital assets and provide the community with the best platforms for digital asset creation, circulation, and exchange”.