Binance smart chain how to#
Binance smart chain code#

Building a brand new blockchain from the ground up was seemingly not a good option for Binance, which was racing against time to take advantage of the decentralized finance (Defi) and the non-fungible token (NFT) craze.Įthereum is the de facto ‘ King of dApps,’ and the availability of its code in the open-source space may have made it easy for Binance to fork it.īinance forked the Go Ethereum (Geth) client to create Binance Smart Chain but made a few adjustments to differentiate it from Ethereum. The best option for Binance was to launch a parallel blockchain to host smart contracts with added compatibility with Ethereum, the leading dApp network. Smart contracts have a history of bogging down their host networks, as witnessed in the December 2017 CryptoKitties crisis on Ethereum and recently, the Solana network.

According to the exchange, introducing the smart functionality to the BC blockchain would have bogged down the network speed making it less efficient. It’s interesting to note that Binance opted to launch a second blockchain after Binance Chain instead of upgrading it, given that it was possible. It is a smart contract platform mimicking the functionality of Ethereum and other dApp platforms such as Tron and EOS. What is DeFi? Liquidity Mining Explainedīinance Smart Chain (BSC) launched in September 2020, about a year and a half after the launch of its older sibling BC.

Binance smart chain how to#

How to Stake Cryptocurrency? Step-by-Step.How to Mint & Sell NFTs? Beginner’s Guide.Must-read Crypto Wallets Guide for Beginners.Best Cryptocurrency Exchanges – Top 7 Picks.How to Invest in Crypto? Complete Beginner’s Guide.Note: To know about Proof of Stake consensus, be sure to read our comprehensive cryptocurrency staking guide. We will discuss in more detail the PoS system in the next section about BSC. Given that BC and Cosmos blockchains share a consensus mechanism, it also means that they share the Proof of Stake (PoS) model of governance and transaction validation used on Cosmos. An example is BNB which exists as a BEP-2 token on the BC blockchain.īinance Chain uses the Tendermint Byzantine fault tolerance (BFT) consensus mechanism, more popularly used on the Cosmos blockchain. Issuance of new tokens based on the BEP-2 standard.Controlling token issuance and supply through minting, burning, locking/unlocking, or freezing/unfreezing.Sending and receiving digital assets, including Binance native currency BNB.According to Binance, the BC blockchain serves the following functions: It also targeted a sub-one-second transaction confirmation time for trades on the platform.Īs a blockchain, BC is structurally limited, only allowing for decentralized trading. It intended to introduce the popular Binance Exchange’s winning formula of an intuitive UI and optimized UX onto the DEX. Most other DEX’es in the market are laden with poor user experiences and clanky interfaces, something Binance aimed to change with its new offering. It jointly launched the Binance Decentralized Exchange (DEX) with the blockchain, designed for high transaction throughput. What is Binance Chain (BC)?īinance launched the Binance Chain blockchain in April 2019 to support its vision for decentralized trading. The crypto community refers to them as decentralized applications (dApps), and they are most popular on the Ethereum blockchain.Īn important question to ask at this point is that if Binance, the leading cryptocurrency exchange in the world, already had a blockchain, why did it create another one? Why a parallel chain instead of collapsing both into a single blockchain? And most importantly, how does BSC compare against Ethereum, currently the leading smart contract platform?

Smart contracts are pieces of code that execute automatically once a preset condition is met. It was launched almost one and a half years after the latter with the explicit purpose of introducing smart contract programmability that was not supported in BC. Introductionīinance Smart Chain (BSC) is a blockchain that runs parallel to Binance’s premier blockchain Binance Chain (BC). It explains what BSC is, how it differs from BC and Ethereum, its technology, some of its uses, and its advantages and drawbacks. This is a detailed guide to Binance Smart Chain (BSC), the parallel blockchain to Binance Chain (BC) with smart contract capability and Ethereum Virtual Machine (EVM) compatibility.