Rancakmedia.com – Binance Smart Chain (BSC) is a blockchain network developed to support smart contract-based applications, for details, see the article below.
SC works in tandem with Binance's native Binance Chain (BC), allowing users to get the best of both worlds: BC's large transaction volumes and BSC's smart contract features.
Additionally, Binance Smart Chain now incorporates the Ethereum Virtual Machine (EVM), allowing it to run Ethereum-based applications such as MetaMask.
The goal of the platform is to enable developers to build decentralized applications (DApps) and help consumers manage their digital assets across chains with low latency and large capacity.
Binance Smart Chain has generated huge traction in early 2021 so far in part due to Ethereum congestion and gas fee woes, which have forced developers and investors to look for alternative options.
The BSC community made the network more attractive to new users as a cost-effective and reliable alternative, by cutting its gas fees from 15 Gwei to 10 Gwei to counter the absurd rise in the price of Binance Coin (BNB) to over $300 in February.
You must be familiar with Binance Coin (BNB) by now, right? Indeed, the popularity of this crypto asset has risen rapidly throughout 2021. Now, the market value of BNB has reached US$49,63 billion and holds the position of the fourth most popular cryptocurrency in the world.
So, have you ever heard of the “house” of BNB specifically Binance Smart Chain (BSC)? This blockchain technology is from the exchange business crypto Binance, you should pay attention to the progress. Because, whatever happens in it will affect the demand for BNB and of course can change the price.
Get to know Binance Smart Chain
Binance SmartChain is a blockchain technology developed by Binance in collaboration with Binance Chain, another technology developed by Binance (BC). Consequently, why does the Binance network have to have two blockchain chains?
Initially, Binance developed Binance Chain in April 2019 with a focus on promoting fast and decentralized cryptocurrency trading. Binance DEX, a well-known decentralized crypto trading platform, is one of the applications (dApps) built on the Binance Chain network.
Binance Chain is also home to BNB for the first time. However, this network has significant drawbacks. One of them is the problem of flexibility.
Binance Chain was designed with speed in mind. While other blockchains can be used to develop some applications on top of BC using smart contract technology, BC is rigid due to its proprietary emphasis.
If BC, on the other hand, decides to use smart contract technology, expect slower transaction rates. This will undoubtedly damage Binance Chain's status as the fastest transaction network. In addition, transaction scalability has always been the biggest problem in blockchain development.
So, therefore, Binance established Binance Smart Chain which has smart contract technology in it. As a result, Binance users can take advantage of BC's transaction speed and BSC's smart contract technology.
Binance Smart Chain is not a stepping stone for Binance Chain, and vice versa, as the two blockchains are interconnected. Both are separate blockchains that can support each other when one of them goes down completely.
The following are the characteristics of BSC
Binance Smart Chain has generated huge traction in early 2021 so far in part due to Ethereum congestion and gas fee woes, which have forced developers and investors to look for alternative options.
The BSC community made the network more attractive to new users as a cost-effective and reliable alternative, by cutting its gas fees from 15 Gwei to 10 Gwei to counter the absurd rise in the price of Binance Coin (BNB) to over $300 in February.
Independent Blockchain
As a separate blockchain from BC, Binance Smart Chain works in tandem with it. If BC closes, BSC will continue its technical and commercial operations.
Compatible with Ethereum
BSC can work with Ethereum compatible smart contracts. Through this functionality, developers can create or deploy DApps, utilities, and other ecosystem components on the BSC network without much friction.
Supports Community-Based Staking and Governance
Proof-of-stake-authority, a consensus mechanism based on proof-of-stake, strengthens the platform. You can choose a community governance protocol using Binance Coin (BNB), the native currency of BSC. Additionally, due to its proof-of-stake (PoS) methodology, it can process transactions faster than networks that use a complete proof-of-work (PoW) system.
Native Interoperability
BC and BSC can easily interact with each other without friction, even if BSC is not a layer 2 solution (as it is a separate blockchain, parallel to Binance Chain). This makes it easier for users to switch their bitcoins between BC and BSC.
What is the Function of Binance Smart Chain
Developers can use BSC to create decentralized applications, as is the case with other blockchain-based smart contract technologies. In fact, BSC technology is compatible with the Ethereum Virtual Machine, which is a system that can convert smart contracts into computer-readable instructions.
Additionally, Binance Smart Chain also operates so that Binance users can cross-chain manage their digital assets with minimal latency and large capacity. The Binance ecosystem, which was already known for its high transaction speeds before the addition of BSC, has now been further enhanced.
Binance Smart Chain and BNB Price Relationship
As previously indicated, BSC has a native coin, called Binance Coin. Since the BSC blockchain uses a Proof of Stake consensus mechanism, these coins are important for ensuring the reliability and security of the system. In this process, users must have BNB coins to verify each transaction to be entered into the BSC blockchain ledger.
Apart from that, BNB is also used by developers to pay transaction fees (gas costs) for every action that occurs on this system. So, what is the relationship between BNB price and BSC blockchain technology?
Gadget fans probably already know that high demand for a product is a factor in its price growth. If demand grows, it is possible that the price of this commodity will also increase considering that the supply has not changed.
The use of coins in BSC technology is one of the factors driving BNB demand. The demand for Binance Smart Chain (BNB) will only increase if a large number of developers join the platform. This will of course increase the price of BNB in the future.
BNB price stability in the future will also be maintained with a coin burning mechanism. For gadget friends who don't understand the mechanism, please refer to this post.
Proof of Using BSC Technology to Price BNB
Maybe Gadget friends still remember that from the first quarter to the second quarter of this year, the price of BNB rose drastically. The price of BNB was recorded at a record high on May 10 2021 at US$690,93 per chip, even though the price at the beginning of the year was only US$37 per chip. Alias, in five months, the value of BNB jumped 1.767,38 percent!
One explanation for the price increase is the growth of developers flocking to the BSC blockchain. The reason is gas pricing and long transaction times on Binance Smart Chain's competition, Ethereum's blockchain.
Additionally, in February, the BSC community reduced petrol prices from 15 Gwei to 10 Gwei to kick off the new year. This is certainly an attraction for developers who want to produce new dApps but more cost effectively.
Additionally, crypto staking investors also like the Binance Smart Chain network because its transaction fees are also relatively cheap. All these events drove the demand for BNB and hence, the price of BNB finally rose at the beginning of this year.
The number of decentralized applications being built shows that the BNB network is preferred by many developers. Ethereum has 2.800 dApps, while BSC only has 810 as of June 2021. It is true that not many people have signed up for BSC. However, BSC managed to reach that figure in less than two years, whereas Ethereum has been operating for more than eight years.
Additionally, a company's day-to-day transactional actions reveal other aspects of the company. Last May, BSC managed to record 11 million daily transactions as can be seen from the following graph.
Well, this number is actually much larger than Ethereum, which has never reached more than 1,8 million daily transactions, as shown in the attached graph.
Conclusion
Binance Smart Chain (BSC) is a blockchain network developed to support smart contract-based applications. BSC works in tandem with Binance's native Binance Chain, allowing users to get the best of both worlds of BC's large transaction volumes and BSC's smart contract features.
Binance founded the Binance Smart Chain which has smart contract technology built into it. BSC can work with. Smart contracts compatible with Ethereum. Can process transactions faster than a. a network that uses a complete proof-of-work (PoW) system.
