What is Binance Smart Chain Top 3

Rancakmedia.com – Binance Smart Chain (BSC) is a blockchain network developed to support smart contract-based applications, see the article below for details.

SC works in tandem with Binance's native Binance Chain (BC), enabling users to get the best of both worlds: BC's large transaction volume and BSC's smart contract features.

Additionally, Binance Smart Chain now incorporates an Ethereum Virtual Machine (EVM), which allows it to run Ethereum-based applications such as MetaMask.

The purpose of this platform is to enable developers to build decentralized applications (DApps) and help consumers manage their digital assets across the chain with low latency and large capacity.

The Binance Smart Chain has generated great traction in early 2021 so far in part due to Ethereum bottlenecks and gas fee difficulties, which have forced developers and investors to look for alternative options.

The BSC community is making the network more attractive to new users as a cost-effective and reliable alternative, by cutting its gas costs from 15 Gwei to 10 Gwei to counter the unreasonable rise in Binance Coin (BNB) price to over $300 in February.

You must know Binance Coin (BNB) by now, right? Indeed, the prestige of this one crypto asset rose 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.

Well, have you ever heard of BNB's "home" specifically the Binance Smart Chain (BSC)? This blockchain technology is from the Binance crypto exchange business, you should pay attention to its progress. Because, whatever happens in it will affect the demand for BNB and of course can change the price.

Get to know the Binance Smart Chain

Binance Smart Chain is a blockchain technology developed by Binance in collaboration with Binance Chain, another technology developed by Binance (BC). Consequently, why should the Binance network 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 top of the Binance Chain network.

Binance Chain is also home to BNB for the first time. However, this network has a significant drawback. One of them is the problem of flexibility.

Get to know the Binance Smart Chain

Binance Chain was designed with speed in mind. While other blockchains can be used to develop multiple applications on top of BC using smart contract technology, BC is rigid because of its exclusive emphasis.

If BC, on the other hand, decides to use smart contract technology, expect slower transaction rates. This will undoubtedly undermine Binance Chain's status as the fastest transaction network. Moreover, transaction scalability has always been the biggest problem in blockchain development.

So, therefore, Binance founded the 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 sustain each other when one of them actually dies.

The following are the characteristics of BSC

The Binance Smart Chain has generated great traction in early 2021 so far in part due to Ethereum bottlenecks and gas fee difficulties, which have forced developers and investors to look for alternative options.

The following are the characteristics of BSC

The BSC community is making the network more attractive to new users as a cost-effective and reliable alternative, by cutting its gas costs from 15 Gwei to 10 Gwei to counter the unreasonable rise in Binance Coin (BNB) price to over $300 in February.

Independent Blockchain

As a separate blockchain from BC, Binance Smart Chain works in tandem with it. If BC is closed, BSC will continue its technical and commercial operations.

Ethereum compatible

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.

Support Staking and Community Based 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. In addition, due to its proof-of-stake (PoS) methodology, it can process transactions much faster than networks that use a full 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 (since it is a separate blockchain, parallel to Binance Chain). This makes it easy 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, the BSC technology is compatible with the Ethereum Virtual Machine, which is a system that can convert smart contracts into computer-readable instructions.

What is the Function of Binance Smart Chain

In addition, Binance Smart Chain is also operational so that Binance users can manage cross-chain their digital assets with minimal latency and large capacity. The Binance ecosystem, which was known for its high transaction speed prior to the addition of the BSC, has now been further enhanced.

Binance Smart Chain Relationship and BNB Price

As pointed out earlier, BSC owns a native coin, which is called Binance Coin. Since the BSC blockchain uses a Proof of Stake consensus mechanism, this coin is important to ensure 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.

In addition, BNB is also used by developers to pay transaction fees (gas costs) for every action that occurs in this system. So, what is the relationship between BNB price and BSC blockchain technology?

Gadget enthusiasts may already know that the high demand for a product is a factor in its price growth. If demand grows, it is likely that the price of this commodity will also increase given that the supply has not changed.

The use of coins in BSC technology is one of the factors driving the demand for BNB. The demand for Binance Smart Chain (BNB) will only increase if a large number of developers join the platform. This will certainly boost 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 Use of BSC Technology to BNB Prices

Maybe you still remember, that from the first quarter to the second quarter of this year, BNB prices rose drastically. The price of BNB was recorded to reach a record high on May 10, 2021 with a value of 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 the competition Binance Smart Chain, the Ethereum blockchain.

In addition, in February, the BSC community lowered the price of gasoline from 15 Gwei to 10 Gwei to start the new year. This is certainly an attraction for developers who want to produce new dApps but in a more cost-effective manner.

In addition, crypto staking investors also like the Binance Smart Chain network because the transaction fees are also relatively cheap. All these events boosted the demand for BNB and as a result, the price of BNB finally rose earlier this year.

Proof of Use of BSC Technology to BNB Prices

The number of decentralized applications 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 are signing up for BSC. However, BSC managed to reach that number in less than two years, whereas Ethereum has been operating for over eight years.

In addition, the day-to-day transactional actions of the company reveal other aspects of the company. Last May, BSC managed to record 11 million daily transactions as shown in the following graph.

Well, this number is really much bigger than Ethereum, which never reached more than 1.8 million daily transactions, as shown in the attached chart.

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, enabling users to get the best of both worlds of BC's large transaction volume and BSC's smart contract features.

Binance founded the Binance Smart Chain which has smart contract technology built in. BSC can work with. Ethereum compatible smart contract. Can process transactions faster than a. network that uses a complete proof-of-work (PoW) system.

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