BNB Smart Chain (BSC) - The blockchain that is changing the future of Web3

BNB Smart Chain, often referred to as BSC, is one of the most dynamic and efficient blockchain networks, supporting a large number of decentralized applications and Web3 services. This blockchain was created in 2020, just one year after the initial launch of BNB Chain, during a period of revolutionary changes in the blockchain world.

The Essence of BSC - Design and Purpose

BNB Smart Chain was developed with a specific goal — to address certain limitations of BNB Beacon Chain, which was unable to fully support smart contract functionality. Two blockchains started operating side by side, each with its own unique purpose, but within a single ecosystem.

BSC introduced new features and greater customization options, facilitating the proliferation of decentralized applications and Web3 services. Notably, in 2022, the two blockchains were offered as separate registration options, but their development continues independently.

Smart Contracts and Ethereum Compatibility

The most important feature of BNB Smart Chain is its compatibility with the Ethereum Virtual Machine (EVM). This means developers who are already experienced in Ethereum coding can easily port their projects to BSC.

Thanks to EVM compatibility, BSC has become an ideal platform for various types of applications:

• Blockchain games and NFT platforms
• Decentralized Finance (DeFi) protocols
• Governance and voting systems
• Multi-chain applications

For users, this means applications like MetaMask can be easily configured to work with BSC, making blockchain technology more accessible.

Consensus Mechanism - How BSC Ensures Network Security

BNB Smart Chain uses a modified version of the Proof of Staked Authority (PoSA) consensus mechanism, which is a variation of Proof of Stake (PoS). This allows anyone to stake BNB and become a validator, or network validator.

Key features of BSC:

• Block time — only 3 seconds, enabling fast transaction confirmation
• Transaction fees — validators earn fees from validated transactions
• BNB is non-inflationary — new BNB is not created through block subsidies; instead, only transaction gas fees are paid
• Regular token burns — the BNB team intentionally reduces the total supply of BNB through periodic coin burns

Token Standard - BEP-20 and Ecosystem

BNB Smart Chain uses the BEP-20 token standard, which functions similarly to Ethereum’s BRC-20. BEP-20 defines a set of technical specifications allowing developers to create:

• Utility tokens
• Stablecoins
• NFT standards
• Various digital assets

To perform transactions on BSC, users need to pay a small amount of BNB as gas fees, which incentivizes network security and operation.

Decentralized Finance (DeFi) on BSC

BNB Smart Chain has become a clear hub for DeFi applications. Users interacting with platforms like PancakeSwap or other DeFi services may notice digital assets from other blockchains, such as BTC, USDT, ETH, and many others.

These assets are presented on BSC as “wrapped tokens” or “Peggy coins.” Their essence:

• BTCB’s price is pegged to the original Bitcoin BTC
• All wrapped tokens are linked to their original assets on their native blockchains
• Smart contracts are designed to create new wrapped versions of each original asset

This allows users to:

• Transfer assets seamlessly from other blockchains
• Continue DeFi activities (swap, farming, yield farming)
• Participate in liquidity pools
• Earn rewards with secret tokens

Unified Future - BNB Chain Fusion

At the end of 2023, BNB Chain announced its plans. They intend to discontinue support for BNB Beacon Chain and migrate its core functions to the BNB Smart Chain network.

The migration will be carried out in phases:

• Start: April 2024
• Completion: June 2024

This unification will create a single BNB Smart Chain architecture that is more streamlined, modern, and efficient.

Summary - Why BSC Matters

BNB Smart Chain (BSC) has become a prominent blockchain offering:

• Fast transactions (3 seconds)
• Low gas fees
• EVM compatibility
• A rich DeFi ecosystem
• A diverse application ecosystem

Launched in 2020 to overcome the limitations of BNB Beacon Chain, today it stands as a key blockchain network in the Web3 space. With smart contract integration, BSC has played a leading role in enabling the deployment of decentralized applications and Web3 services.

Additional resources:

• More about BNB Chain
• Connecting MetaMask to BSC
• PancakeSwap on BSC

Disclaimer: This content is provided “as is” and is for informational purposes only.