Binance launches the Smart Chain
Binance launches the Smart Chain
Blockchain

Binance launches the Smart Chain

By Marco Cavicchioli - 25 May 2020

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Binance has announced the launch of the testnet for its Smart Chain

As a result, Binance Smart Chain (BSC) accompanies the blockchain Binance Chain (BC), on which Binance Coin (BNB) and Binance DEX are currently running. 

BC is the basis of the decentralized exchange, i.e. the blockchain which allows the issuance of BEP2 tokens (Mini-BEP2), the so-called Peggy Coins (BTC, ETH, XRP), which are based on Proof of Stake and BFT and have a block time of less than one second. 

BSC introduces a dual chain architecture to allow users to develop decentralized apps and digital assets on one blockchain, and trade quickly on the other. 

BSC is compatible with the Ethereum Virtual Machine (EVM), has the BEP2E standard for tokens and is ERC20 compatible, is based on Proof of Staked Authority (PoSA), allows cross-chain transfers and has a block time of about 5 seconds

The two-chain architecture should ensure high performance, high capacity, low cost, simple tokenization without the need for smart contract writing and new token standards (BEP8). 

Binance has not yet revealed exactly what the specific use of the new Smart Chain will be within its ecosystem, but as BSC is still in the testing phase, it is to be expected that it will take some time before it reveals its real intentions. 

This appears to be a project that aims to implement the technical infrastructure in order to allow the creation of new tools, which at present can only be imagined. 

A month ago it was announced that a new solution to support more friendly smart contracts was being studied and that it would be based on a parallel blockchain. 

In this way, the Binance Chain, and the DEX, will continue to work independently, just as they are doing now, while the new blockchain will allow the simplified creation of smart contracts and tokens. 

In addition, the fact that it is compatible with EVM will allow it to support all the tools already existing on Ethereum, but with theoretically faster execution times and lower transaction fees.

The fact is that BC doesn’t give developers much freedom to create dApps, and so BSC will help to fill this gap. 

It remains to be seen how many will prefer BSC to Ethereum since the use of the latter is now so widespread that it’s hard to think that it can be realistically removed in a short time from its current dominant role in the crypto sector and in particular in decentralized finance.

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 11 thousand subscribers.

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