8 mins readBNB Chain is like a cool club, created by Binance. Binance, by the way, is a super popular place to trade digital currency, kinda like trading Pokémon cards but way more intense.
In this article, we are going to discuss deeper about it. Let’s roll!
What is BNB Chain?
The BNB Chain is sometimes called the Build N Build Chain. It consists of two blockchains, BNB Beacon Chain (their nickname is BC) and BNB Smart Chain (people call them BSC).
- BSC has a super ability—it can understand Ethereum, another famous blockchain language.
- BNB is like their special secret coin that people called validators. It makes sure things run smoothly. They "stake" it and use it to help govern the whole BNB Chain system.
Now, BNB Chain is very special. It's like a super highway for sending digital money quickly and safely. It's made especially for Binance Coin, which is like the official token for this blockchain highway.
What powers this super highway is something understood as the Proof-of-Stake. Unlike Bitcoin, it doesn't drink too much energy. It won't drain the planet, and here's a bonus point - it's super-fast!
Credit: Binance.com
Here's another cool thing about BNB Chain. It grows like a magical tree, popping out new tokens which we can use for different things. We could use them in cool gaming apps, in securing our money (something grown-ups call "Decentralized Finance"), and to own unique digital collectibles known as NFTs. Sounds impressive, right?
And that's not all! BNB Chain has brainy contracts (don't worry, it's just a fancy word for rules) built into it. This means people who write code, also known as developers, can create incredible apps on this network.
How It All Started?
Imagine it's 2017. Binance is founded by a guy named Changpeng Zhao. BNB token, their signature coin, is created at the same time.
At first, it used Ethereum to function, kind of like relying on a friend. But by 2019, it grew up and moved onto the Binance Chain.
Number of Users of Binance
In September 2020, we see BNB Smart Chain appear on stage. Fast forward to 2022, Binance unites BSC and BC into what we now call the BNB Chain. This supergroup chain has also got members like BNB Sidechain and ZkBNB, who really amp up the band's performance!
Finally, did you know the BNB Smart Chain can do some cool things like manage and sell NFTs?
Yup, and here's a bonus track - it can run parallel to another chain called the Beacon Chain, it can understand complex contract rules, and it's compatible with Ethereum's language!
It's an incredibly cool blockchain network that started from an ERC-20 token. Now, it evolved into something pretty amazing.
What is BNB Smart Chain (BSC)?
So, what's BSC? Well, BNB Smart Chain (BSC) is like a digital sandbox. It's a playground where you can create cool apps and digital contracts. BSC is extremely fast, smart and doesn't cost a lot. BSC has some standout features that make it special. Let's break them down.
Compatibility with Ethereum
BSC speaks the same language as Ethereum. This means that BSC understands how Ethereum works, allowing Ethereum's inventions to work with BNB.
Dual-chain architecture
Think of BSC as having a dual-engine. It's like two tracks running side by side. One is the BNB Beacon Chain, and the other is BSC. They work together, swapping and sharing stuff at high speeds.
Proof of Staked Authority (PoSA) consensus mechanism
BSC uses a system to elect its leaders, known as validators. These guys verify and create blocks (like digital building blocks). It's like voting, but the more BNB tokens you hold, the more votes you get.
Cross-chain compatibility
BSC can communicate with different blockchain networks. Imagine having friends on different playgrounds. That's what BSC does. It exchanges tokens—think of these as digital money—and shares data across its friend networks.
Decentralized finance (DeFi)
Lastly, BSC is the place to be for Decentralized Finance or DeFi projects. Imagine it as a popular spot for digital investors. Why? Because it gets along well with Ethereum users, it's cheap, the data transfer is swift, and it's really popular. This popularity has sparked a DeFi boom on BSC.
What is BNB Beacon Chain?
It is a special place where BNB tokens get staked and it calls the shots for the BNB ecosystem. Now, let's jump into the major cool stuff about BNB Beacon Chain!
Whoosh - It's Fast!
Big deal about BNB Beacon Chain? It's super fast! Like the Flash, it delivers quick transactions and low waiting times. It's perfect for any race-against-the-clock activity.
Welcome to DEX
BNB Beacon Chain is like a virtual marketplace. Specifically, it supports a decentralized exchange known as Binance DEX. Neat, right?
Keeping it Low on Fees
Still using expensive platforms? Consider BNB Beacon Chain, the costs for transactions are so reasonable, it makes other blockchains jealous.
The People Rule
Here's another cool feature! Everyone's voice matters in BNB Beacon Chain. It's steered by the community, where hard-working contributors get the chance to make the rules. But, how does this all come together?
How does BNB chain work?
The BNB Chain's ecosystem can be quite a spectacle. It's like a team, with each chain having a specific job.
- For instance, BNB Smart Chain (an L1 blockchain), is mainly used for lovable NFTs (digital collectibles).
- Then there's BNB Beacon Chain itself. It's the governor of it all, controlling the stakes and the votes using BNB tokens.
Looking to build an L2 blockchain? BNB's Sidechains are your how-to manuals, with the BNB SC as the L1 guiding star. And they're great for crafting interactive DApps.
Lastly, don't forget the speedy ZkBNB, boosting BSC’s services. BNB claims that a ZkBNB can process up to an unbelievable 10,000 transactions in one second!
What's BNB Smart Chain's PoSA?
BNB uses Proof-of-Staked Authority (PoSA). It's different from Bitcoin and Ethereum.
| Proof-of-Stake (PoS) | Proof-of-Authority (PoA) | Proof-of-Staked Authority (PoSA) | |
| Consensus Mechanism | Validators are chosen based on the number of coins they hold and are willing to 'stake' as collateral. | Validators are pre-selected by the network's organization, and they verify and validate new transactions. | A hybrid of PoS and PoA. Validators are chosen based on the number of tokens they hold and stake, as well as their reputation. |
| Transaction Verification Speed | Moderate - depends on the size of the stake. | Fast - since the validators are trusted entities. | Moderate to Fast - depends on the number of staked tokens and reputation. |
| Decentralization Level | High - anyone with enough coins can become a validator. | Low - only a few trusted entities are validators. | Moderate - requires both stake and reputation, which might be difficult for new participants to acquire. |
| Security | High - attacking the network would require acquiring a majority of the staked tokens, which is costly. | Moderate - depends on the integrity of the validators. | High - attacking the network would require a substantial stake and a reputable identity, which is both costly and difficult. |
| Energy Efficiency | High - staking requires less computational power than Proof-of-Work. | High - since only a few validators do the work. | High - requires less computational power like PoS, but with added security of PoA. |
| Examples of Use | Ethereum 2.0, Cardano, Polkadot. | VeChain, POA Network. | Cosmos, Terra. |
Curious about PoSA?
It's a mix of Proof-of-Stake and Proof-of-Authority.
Confused? Let me explain.
PoSA vs. Other Methods
With Proof-of-Stake, blocks depend on random validators. Proof-of-Authority? Just a few trusted validators. But PoSA? That's where the fun begins! The Magic of PoSA In PoSA, a group of voted-upon validators adds blocks to the blockchain. But only 21 can participate. No worries, though! There are 20 "Candidates" waiting, just in case. The active validators reset every day.
Cool Stuff with BNB Smart Chain
Now, let's check out some BNB Chain uses!
BNB Smart Chain DApps
Decentralized apps (DApps) are super fun! They're blockchain-integrated websites that work with your wallet. Examples? Games like X World Games and many more!
BNB Smart Chain DeFi
Decentralized Finance (DeFi) is financial services on blockchain tech. Think earning interest, borrowing, lending, trading! Examples on BNB Chain? ApeSwap and SushiSwap - they rock!
BNB Smart Chain NFTs
Last but not least, Non-Fungible Tokens (NFTs)! Unique digital items with blockchain ownership. We're talking digital art, collectibles, VR items, crypto domain names, and more. On BNB Chain, you'll find NFTs like Polychain Monsters. Cool, right? There you have it! BNB Smart Chain and its Proof-of-Staked Authority offer unique and exciting applications. Give it a try today!
