Binance Smart Chain (BSC) is a blockchain platform that runs in parallel with the Binance Chain, the native blockchain of the Binance cryptocurrency exchange. BSC was launched in September 2020 and aims to provide a fast, low-cost and scalable infrastructure for decentralized applications (dApps), decentralized finance (DeFi) and interoperability with other blockchains.
BSC is compatible with the Ethereum Virtual Machine (EVM), which means that it can run smart contracts and dApps that are written in Solidity, the most popular programming language for Ethereum-based projects. This also means that BSC can support most of the existing Ethereum tools and protocols, such as MetaMask, Remix, Truffle, Web3.js, etc. Moreover, BSC can leverage the existing liquidity and user base of the Binance ecosystem, which includes the Binance Chain, the Binance DEX and the Binance Smart Chain Wallet.
BSC uses a consensus mechanism called Proof of Staked Authority (PoSA), which combines elements of Proof of Authority (PoA) and Proof of Stake (PoS). In PoSA, there are 21 validators who take turns to produce blocks and validate transactions. These validators are chosen by BNB holders, who can stake their tokens to vote for their preferred candidates.
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Validators receive rewards in the form of transaction fees and cross-chain transfer fees. BNB is the native token of both Binance Chain and Binance Smart Chain, and it is used for paying gas fees, staking, governance and other functions on both platforms.
BSC boasts a high performance and low cost compared to other blockchains. It can achieve a block time of about 3 seconds and a throughput of about 2000 transactions per second (TPS). The gas fee on BSC is also much lower than on Ethereum, ranging from $0.01 to $0.05 per transaction, depending on the network congestion. This makes BSC an attractive alternative for developers and users who are looking for a cheaper and faster way to deploy and interact with dApps and DeFi products.
BSC also supports cross-chain communication and transfers with other blockchains through the Binance Bridge and the Binance Smart Chain Wallet. The Binance Bridge is a service that allows users to swap their tokens from one blockchain to another, such as from Ethereum to BSC or vice versa.
The Binance Smart Chain Wallet is a browser extension that allows users to access their funds and dApps on both Binance Chain and Binance Smart Chain. Users can also use the wallet to connect to other platforms that support BSC, such as PancakeSwap, BakerySwap, Venus, etc.
BSC has seen a rapid growth in its ecosystem since its launch. According to Bsc Scan, there are over 2.5 million unique addresses and over 100 million transactions on BSC as of August 2021. There are also over 600 dApps and over 1000 tokens on BSC, covering various sectors such as DeFi, NFTs, gaming, etc. Some of the most popular projects on BSC include:
PancakeSwap: A decentralized exchange (DEX) that allows users to swap tokens, provide liquidity, farm yields and participate in lotteries and NFT sales.
BakerySwap: A DEX that also offers features such as NFT marketplace, gamification and launchpad.
Venus: A decentralized money market protocol that allows users to borrow and lend crypto assets, earn interest and mint stablecoins.
CryptoBlades: A role-playing game that allows users to earn tokens by defeating enemies, crafting weapons and trading items.
Axie Infinity: A game that allows users to collect, breed and battle digital pets called Axies.
BSC is constantly evolving and improving its features and functionalities to meet the needs and expectations of its users and developers. BSC has a governance mechanism that allows its community to propose and vote on changes and upgrades to the platform. BSC also supports innovation and experimentation through its testnet and innovation zone, where developers can test their DApps before launching them on the mainnet.
BSC is a blockchain platform that offers high performance, low fees, cross-chain compatibility, rich ecosystem and support, innovation and governance for developers who want to deploy their DApps on a scalable, secure and interoperable platform. BSC is one of the fastest growing and most popular blockchain platforms in the world, with over 2 million active wallets and over 100 billion dollars in total value locked (TVL) as of September 2023.