Binance has two chains, Binance Chain and Binance Smart Chain, which are not one chain. When withdrawing coins on the Binance Exchange, the BEP-2 you see is the Binance Chain, and the BEP-20 is the Binance Smart Chain.
Binance Smart Chain is a parallel chain of Binance Chain, which can also be considered as a modified fork of Ethereum that supports EVM. So when you are on BSC, you can see that many projects on Ethereum are directly transplanted. Due to low fees and low barriers to entry, the number of users and transaction volume have continued to rise.
Basic Information
Basic Information
Binance Smart Chain, abbreviated as BSC. Highly restored Ethereum, it is convenient for similar projects to migrate to BSC. In half a year since the project was launched, the number of projects and transaction scale on the chain have reached a level that other public chains "envy", and it can be said to be the second largest public chain after Ethereum.
Platform token: BNB
With the gradual improvement and development of the Binance ecosystem, the price of BNB has also risen. This year, the unit price of BNB was as high as nearly 700 US dollars, and many holders have achieved passive wealth.
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Chart source: coin98
DeFi field
DeFi field
DEX field
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Chart source: coin98
some alternative items
DEX, pancake on bsc replaced uniswap on Ethereum.
Borrowing, XVS replaced well-known projects such as AAVE and compound.
Machine gun pool, autofarm and coinwind on bsc replaced yEarn on Ethereum.
In terms of data analysis, defistation replaced DeFi Pulse on Ethereum.
On bsc, you can find almost all alternatives to the projects you have played on the main network (Ethereum). The lower handling fee lowers the participation threshold, allowing more and more users to participate in the development of the blockchain in the world.
consensus mechanism
consensus mechanism
Proof of Stake Authority (PoSA)
POW workload proof, the real cases of Bitcoin and Ethereum have proved that this is an effective solution to achieve decentralization. Of course, it requires a large number of miners to maintain network security and consumes more energy.
POA proof of authority, reputation-based algorithm. POA relies on very few nodes and does not require a lot of computing power to verify blocks and complete transactions, so TPS will be larger. However, its verification nodes have great power and are considered to be too centralized, which will cause security and corruption problems.
Proof of POS rights and interests, through elections to generate the next verification block node. The selected node is also called a validator. To become a validator, you need to pledge a certain amount of tokens. For example, to become a validator in Ethereum 2.0, you need to pledge 32 Ethereum tokens. Becoming a selected validator (node) is related to many factors, one of which is the proportion of pledge. This also means that the power influence of each node is not consistent.
BSC combines POA and POS and introduces PoSA, which is the proof of authority of rights and interests. Blocks are generated by a limited number of verifiers; verifiers generate blocks in the form of POA; verifiers are selected and eliminated based on the on-chain governance of equity pledge.
validator node
The number of validator nodes is 21. At the time of creation, some trusted nodes were selected as the initial verifiers to run, and all candidates can participate in the election after the block is produced. Within 24 hours, the top 21 nodes with the most pledges will become the next batch of validators. Election and elimination every 24 hours.
wallet
wallet
For users entering the currency circle, learning to use wallets is an essential skill. Including: private key (mnemonic), withdrawal, transfer, establishment of multiple addresses, transfer of assets in different chains, use of dex, participation in airdrops, etc.
Binance launched the Trust wallet on the mobile terminal, which supports most mainstream currencies. Because the author has not used this wallet in depth, there are too many functions to introduce. An earlier feature of this wallet is the support for NFT tokens. Now mainstream wallets basically support this function.
future outlook
future outlook
At present, the development of BSC is still full of vitality. The Binance behind it is actively deploying in various fields of the blockchain, and wants to create a complete ecological closed loop. At the same time, they are not stingy about the support of BSC. Recently, another 1 billion US dollars has been invested to stimulate the development of projects on the chain.
Although many projects on BSC can be considered as replicas of Ethereum's leading projects, in comparison, the lower gas fee lowers the entry threshold for players and will continue to attract more and more people to enter. The improvement of the ecology also attracts new developers, and the project is deployed on BSC from the beginning to obtain more traffic.
Every public chain project regards Ethereum as a potential competitor. Of course, the ambition of BSC is not as simple as imitating Ethereum. Its fangs may have just bared.
Attached reference reading:
1. Official website: https://www.binance.org/en/smartChain
2. White paper: https://dex-bin.bnbstatic.com/static/Whitepaper_%20Binance%20Smart%20Chain.pdf
3. Browser: https://bscscan.com/
