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Binance Smart Chain launches on mainnet

Photo of: Janeth Diamond
by Janeth Diamond

The Binance Smart chain is now live on mainnet, a move that will activate a parallel blockchain to the Binance chain. This will enable the creation of smart contracts and will power users to stake Binance’s token BNB to become a validator of the new blockchain. 

About Binance Smart Chain

Smart Chain will have a dual architecture that will empower its users to build their DApps and their digital assets all on one blockchain. The users can benefit from the fast trading to exchange on another. The new Binance smart chain is EVM compatible, enables cross-chain transfers, and also has a block time of 5 seconds. The project was finally announced by Binance after it was unveiled 5 months ago. The Binance Chain community launched BSC for the first time because the public wanted alternative financial solutions that are being backed and powered by Blockchain. Now with the launch of the smart chain, DeFi projects as well the blockchain community as a whole can take advantage of all the best attributes that the chain has got to offer accentuated by smart contracts support and better interoperability. 

How does it work?

The new blockchain goes well with the Ethereum Virtual Machine which also could increase the usability of the token as well the Binance chain. BNB is Binance’s ERC-20 token that has a market cap of around $ 3 million. The network can produce one block in every 3 seconds as per the runs on the Proof of Stake Authority Consensus algorithm(PoSA). The organization has also claimed that PoSA will enable validators to get rewards on the chain without sacrificing transaction speed. The Binance smart Blockchain has also made provisions for the creation of Decentralized applications (dApps) in the Binance Chain ecosystem. The developers can now easily build DeFi services and products. The new Binance Smart Chain also claims that with this new blockchain, transaction fees also will lower and may go down to 1 cent. The digital asset architecture and ecosystem of the Binance’s DEX is major support in the entire scheme of things. 

How will the users benefit

Users will be able to benefit from a host of benefits provided by the chain and Binance.com. These benefits are:

  1. Users can avail benefits surrounding the presence of a powerful and growing digital asset ecosystem which is powered by Binance (considered to the biggest and the leading decentralized exchange)
  2. Users can also enjoy transaction fees as low as 1 cent
  3. Lower fees will not imply poor performance. The network is capable of producing one block every 3 seconds.
  4. Thanks to the cross-chain DeFi mechanisms the DeFi interoperability has vastly improved.
  5. The support of Binance ecosystems which will fund and bootstrap many DeFi projects
  6. Users will gain advantage because the ecosystem is ever-growing with millions of users across Binance.com and the DEX.
  7. Many new crypto projects in talks or already collaborating with the Binance Smart Chain.

Binance smart chain communities are also preparing to release many other tools this month to enable functions like token issuance, transfer, staking, dApp creation, and much more.