Binance Chain Developers Launch Binance Smart Chain Mainnet with BNB Staking and Decentralized Finance (DeFi) Application Development.
The developers published the Binance Smart Chain White Paper in April 2020. The Binance Smart Chain is the Binance Chain sidechain to support smart contracts. Before deploying the main Binance Smart Chain, the developers launched a test network, checking the security of its interactions with various blockchains, as well as conducting stress tests using competitions.
With Binance Smart Chain, you can develop decentralized applications (dApps) on the Binance Chain ecosystem and build products for the DeFi industry. The infrastructure of this blockchain allows Binance Chain to work with the Binance DEX decentralized exchange and various cryptoassets. In addition, the Binance Smart Chain blockchain is compatible with the Ethereum Virtual Machine (EVM), which means the integration of Ethereum-based instruments.
Another important feature of the Binance Smart Chain is the staking of the BNB coin, one of the ten leaders by market capitalization. Thanks to the Proof of Staked Authority (PoSA) consensus mechanism, Binance Smart Chain validators will receive a BNB reward for completing tasks. This will motivate the participants in the network and ensure its smooth operation without reducing the speed of transactions.
“Binance Smart Chain enables the development of DeFi services and decentralized applications in the Binance Chain ecosystem. At the same time, Binance Smart Chain has the advantages of a new generation blockchain: BNB staking, high performance, reduced fees, direct interaction with a decentralized exchange, and much more. There are plans to launch new products in the near future, ”said Binance CEO Changpeng Zhao.
Talking about the benefits of Binance Smart Chain, the developers noted the following:
Reliability of the blockchain ecosystem. We are talking about a powerful developer base supporting various integrations, including Chainlink, Band Protocol, Swipe, Ontology, Trust Wallet and about 25 other projects.
High speed of block creation and low transaction fees. In addition to being compatible with major blockchains, Binance Smart Chain uses a unique PoSA consensus algorithm that allows a new block to be generated every 3 seconds. In addition, the fee structure significantly reduces costs when using DeFi protocols and decentralized applications.
Access to assets on the Binance Chain network. Binance Chain interacts with the Binance DEX decentralized exchange and also supports Bitcoin, Ether and other well-known cryptocurrencies. The list of assets available on the Binance Smart Chain for DeFi protocols will expand.
The launch of Binance Smart Chain comes amid the rapid development of the DeFi industry, which is changing the perception of finance, attracting more and more attention to blockchain and cryptocurrencies. In July, Binance Smart Chain specialists connected Chainlink oracles to empower the DeFi industry, and in August integrated Band Protocol data oracles to protect users from potential risks.
