How does Binance Smart Chain work?

3 answers

• Dec 17, 2021 · 3 years ago
  Binance Smart Chain (BSC) is a blockchain network developed by Binance, one of the largest cryptocurrency exchanges. It operates parallel to the Binance Chain and offers smart contract functionality, making it compatible with the Ethereum Virtual Machine (EVM). BSC uses a consensus mechanism called Proof of Staked Authority (PoSA), where validators are selected based on their stake in BNB, the native cryptocurrency of Binance. This allows for faster block times and lower transaction fees compared to the Ethereum network. Unlike other blockchain networks, BSC aims to provide a seamless user experience for decentralized applications (dApps) by offering high performance and low costs. It achieves this by utilizing a dual-chain architecture, where Binance Chain handles fast trading and BSC handles smart contracts and decentralized finance (DeFi) applications. This design allows BSC to benefit from the liquidity and user base of Binance while providing a scalable and efficient platform for developers and users alike.
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• Dec 17, 2021 · 3 years ago
  Binance Smart Chain (BSC) is a blockchain network that operates alongside Binance Chain, offering smart contract capabilities. It provides a more affordable and efficient alternative to the Ethereum network, which has been plagued by high fees and network congestion. BSC achieves this by utilizing a hybrid consensus mechanism that combines Proof of Stake (PoS) and Proof of Authority (PoA). This allows for faster block confirmations and lower transaction costs. One of the key features of BSC is its compatibility with the Ethereum Virtual Machine (EVM), which means that developers can easily port their existing Ethereum dApps to BSC with minimal modifications. This has led to a rapid growth of decentralized finance (DeFi) projects on BSC, offering users a wide range of financial services such as lending, borrowing, and yield farming. Overall, Binance Smart Chain provides a user-friendly and cost-effective platform for developers and users to build and interact with decentralized applications, making it a popular choice in the cryptocurrency space.
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• Dec 17, 2021 · 3 years ago
  Binance Smart Chain (BSC) is a blockchain network developed by Binance, one of the leading cryptocurrency exchanges. It was created to address the scalability and high transaction fees issues faced by the Ethereum network. BSC achieves this by using a dual-chain architecture, where Binance Chain handles fast trading and BSC handles smart contracts and decentralized applications (dApps). One of the unique aspects of BSC is its consensus mechanism called Proof of Staked Authority (PoSA). Validators on BSC are selected based on their stake in BNB, the native cryptocurrency of Binance. This ensures that the network remains secure and decentralized while allowing for faster block times and lower fees compared to Ethereum. Binance Smart Chain has gained popularity due to its compatibility with the Ethereum Virtual Machine (EVM), which allows developers to easily migrate their existing Ethereum dApps to BSC. This has led to a vibrant ecosystem of decentralized finance (DeFi) projects on BSC, offering users a wide range of financial services. Overall, Binance Smart Chain provides a scalable, low-cost, and developer-friendly platform for building decentralized applications and participating in the growing DeFi space.
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