Binance Chain vs Binance Smart Chain
A blockchain called Binance Chain is the first one created by Binance. However, it had some limitations in terms of programability. Because of these limitations, Binance Smart Chain (BSC) was built. Platform users will be able to run Ethereum-based applications and smart contracts thanks to the use of BSC.
Changpeng Zhao, a software developer, founded Binance in the Cayman Islands in 2017. The high-frequency trading software that Changpeng Zhao had previously created is still in use today. Binance was born as a result of his efforts, which included assembling a group of like-minded programmers. Binance has become the largest cryptocurrency exchange in the world in terms of daily volume traded. However, we sometimes confuse Binance Chain and Binance Smart Chain.
What if we told you these two are not the same but not a substitute for another? It’s true. Binance Chain and Binance Smart Chain are two different entities although both built by Binance. Let us break it down for you.
The Binance Chain is a cryptocurrency.
Binance launched an ERC-20 token in 2017 and named it Binance Coin after its meteoric rise to prominence. For trading fees, Binance Coin was used and a portion of it was burned each quarter. The ERC-20 token was replaced in 2019 by Binance Coin, the company's own token (BNB). Binary launched the Binance chain, a public blockchain. Coins can be traded on the Binance chain, which is a marketplace. Binance DEX, a decentralised exchange, was also built by the group. Decentralized applications can be built on top of Binance Chain. It's a decentralised, open, and cost-effective blockchain. Store your crypto funds safely with Binance Chain and set up trading pairs with other cryptocurrencies using Binance Chain.
Blockchain-enabled Binance Token Exchange
Binance will launch its own blockchain in September 2020, calling it the Binance Smart Chain. It is not a replacement for the original Binance Chain. Additionally, it's connected to the Binance Chain. Because Binance Chain did not support Ethereum-based applications, the developers made the decision to change their strategy. Using Ethereum Virtual Machine (EVM) compatibility, they built the Binance Smart Chain.
Consequently, this means that Ethereum-based applications can run on the blockchain. In addition, smart contracts can be implemented with it. In terms of lower transaction and trading fees, these contracts have made it easier for users. With these chains in hand, let's see what you can do with them.
Consensus is used in both chains in this regard. Proof of Staked Authority (PoS) is used by Binance Smart Chain, while Delegated Proof of Stake is used by Binance Chain (PoSA). When participating in the PoSA network, users take a personal risk with their names and reputations, respectively. When users stake some collateral in exchange for confirming network data, the PoS algorithm encourages them to do so. DPoS algorithms enhance PoS by including a voting and delegation mechanism. Any user can become a validator by submitting a valid block. So let's see what you can do with both chains.
Is there anything you can do with the Chain?
BNB can be exchanged for and received (Binance Coin). What does BNB stand for?
Digitalize assets by issuing brand-new tokens.
In order to exchange your assets, use Binance Chain as the underlying exchange network.
Tokens can be exchanged, received, burned/minted, and frozen/unfrozen.
Different tokens can be used to create trading pairs
What can Binance Smart Chain be used for?
Send and receive BEP2 tokens, including BNB (Binance Coin is a BEP2 token)
Using bscscan and the API, you can access transaction history and blocks.
Earn BNB rewards by placing a bet.
Tokenize assets by creating new tokens for the purpose.
Sign up to be a BSC Validator.
The two chains operate in unison. There are many advantages to using decentralised exchange, smart contracts and decentralised applications in conjunction with each other.
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