The layer-1 blockchain of cryptocurrency exchange Binance named BSC recently combined the Binance Chain and the Binance Smart Chain to create the BNB Chain. In order to enhance and further decentralize the protocol, the layer-1 or underlying blockchain for Binance is being relaunched as part of a strategy to connect it to the governance token, BNB.
What is the BNB Chain?
BNB Chain is made up of:
- BNB Chain Governance and BNB Beacon Chain (formerly known as Binance Chain) (Staking, Voting)
- BNB Smart Chain (BSC), previously known as Binance Smart Chain, is EVM-compatible, has consensus layers, and has hubs for many chains.
The lately published BNB Chain comprises of the BNB Beacon Chain for BNB Chain governance and the BNB Smart Chain, which is still compatible with the Ethereum Virtual Machine (EVM) (i.e., staking and voting).
The BNB Chain is a development in Binance’s recent MetaFi initiatives by enhancing interoperability and creating the foundational architecture of the “world’s parallel virtual environment.”
The BNB Chain is a community-driven, open-sourced, and decentralized ecosystem. The rebranded BNB Chain is made up of the BNB Beacon Chain and the BNB Smart Chain. For governance, utilize BNB Beacon Chain (formerly known as Binance Chain) (i.e., staking and voting). Consensus procedures are carried out on the BNB Smart Chain, which is still still compatible with the Ethereum Virtual Machine and is evolving into a multi-chain hub.
The acronym for BNB, formerly known as Binance Coin, is “Build and Build.” BNB not only powers transactions on the BNB Chain but also functions as a governance token (much like gas on Ethereum). By possessing BNB, which is necessary, you may participate in the decentralized on-chain governance of the BNB Chain. Additionally, the users, BSC projects, the BSC coin, and developers active in BNB activities will gain from this name change.
What is BSC?
Transactions take place on the blockchain platform BSC from the cryptocurrency exchange Binance. A high-performance infrastructure for dApp development, decentralized trading, blockchain interoperability, support for smart contracts, and other DeFi products is what BSC is designed to provide.
Unlike those on the BNB Beacon Chain, the native tokens on BSC adhere to the BEP-20 token standard. Without getting into great detail, BEP-20 is based on Ethereum ERC-20 and allows for compatibility with smart contracts.
Learn more about the suggested BSC token list.
BNB Chain Goal
BNB Chain has pledged to the community the following things as part of its mission to provide the groundwork for the global parallel virtual ecosystem:
- Openess
- Multi-chain
- For those who create and innovate
- Permissionless
- Permanently decentralized
- Greater than and distinct from Binance
BNB Chain Potential
DeFi
The DeFi BNB Chain was developed for DeFi. Tokens from other chains can be used in the developing DeFi ecosystem on the BNB Chain. BSC has always prioritized DeFi apps above other types of apps in an effort to compete with the Ethereum ecosystem while costing customers less.
NFT
Binance established a unique non-fungible token ecosystem that links creators, artists, and cryptocurrency enthusiasts. Binance NFT is the native platform that enables users to create and trade NFTs quickly and cheaply.
Play-to-Earn
The BNB chain has made significant investments in the gaming industry, resulting in one of the most active gaming ecosystems. Additionally, traders may rapidly and securely deal with a number of GameFi tokens on Binance, one of the top cryptocurrency exchanges. Additionally, Binance Labs, the company’s venture capital branch, continues to support the greatest gaming technologies.
Meta
In the context of BNB Chain, “meta” denotes “all-encompassing” or “a means to a goal,” not any specific reverence for the metaverse. They prefer the term MetaFi more.
In MetaFi, a meta ecology and finance are merged. The concept of combining the metaverse, DeFi, GameFi, SocialFi, Web3, and NFTs into a unified ecosystem is referred to as “MetaFi.”
Business owners, inventors, and developers have a rare opportunity to create for MetaFi with BNB here. The BNB Chain community will build the infrastructure required to sustain the global virtual environment.
Pros and cons of the BNB Chain
Even the BNB Chain is not an entirely faultless application. Some are concerned that the chain is centralized, has labor-intensive and resource-intensive node operation and validation processes, and that related innovations happen on Ethereum rather than its own environment despite the fact that it offers low transaction fees, quick adoption, a bridging feature, enough funding, and localization.
Future of the BNB Chain
The BNB Chain also disclosed a few further technological developments planned for the remainder of 2022, including the introduction of BSC Application Sidechains and new BSC partition chains, in addition to the increased focus on MetaFi.