Binance Chain, the blockchain platform initiated by Binance and a worldwide community of developers and contributors, has announced the mainnet launch of Binance Smart Chain. The parallel blockchain running alongside Binance Chain supports smart contract functionality and introduces a new staking mechanism for BNB, Binance Chain’s native token.
Binance Smart Chain gives developers the ability to build decentralized applications (dApps) within the Binance Chain ecosystem, unlocking more opportunities to build decentralized finance (DeFi) products and solutions. It features cross-chain infrastructures, which connects Binance Chain for fast DEX and other popular crypto assets, as well as compatibility with the Ethereum Virtual Machine, enabling support and integration of Ethereum-built tools and solutions.
Another key feature of the Binance Smart Chain is the introduction of staking for BNB, a top-10 digital asset in the world by market capitalization. With the introduction of the Proof of Staked Authority (PoSA) consensus mechanism, Binance Smart Chain validators will receive BNB rewards for executing tasks on the blockchain, ensuring stability and incentive without sacrificing transaction speed.
“Binance Smart Chain makes it possible for developers around the world to build DeFi services and many more dApps within the Binance Chain ecosystem, while delivering various benefits such as an all-new method for staking BNB, high performance, lower fees, direct connection with fast DEX and more. We are looking forward to what more will materialize in the near future with the great initiative developed by the Binance Chain community with the launch of Binance Smart Chain.”
– Binance CEO, Changpeng Zhao (CZ)
Some of the benefits and features of Binance Smart Chain include:
- Robust Blockchain Ecosystem – Binance Smart Chain features a powerhouse of blockchain collaborators that support various integrations, including Chainlink, Band Protocol, Swipe, Ontology, Trust Wallet, and at least 25 more projects.
- Fast Blocking and Lower Transaction Fees – In addition to compatibility with major blockchains, Binance Smart Chain uses the unique PoSA to block every 3 seconds and has a fee structure that can dramatically decrease overhead costs for DeFi and dApp protocols.
- Access to Binance Chain Assets – Binance Chain powers Binance DEX, a leading decentralized exchange, as well as pegged tokens for major cryptocurrencies such as Bitcoin, Ethereum, and more. This mechanism will be used to continue growing the list of assets available on the Binance Smart Chain for DeFi protocols.
The launch of Binance Smart Chain comes at a time when DeFi solutions are changing the way the industry views finance, bringing newfound interest in blockchain and cryptocurrencies.
The Binance Chain community introduced Binance Smart Chain in April 2020, through a whitepaper that proposes a parallel blockchain for smart contract support. The community has since launched testnet versions of Binance Smart Chain, secured connections with various blockchain projects, and executed tests through competitions.