What is Binance Smart Chain?

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Those who use, hear, and read Binance know that it is the largest cryptocurrency exchange by transaction volume. This platform’s distinctive feature is that it combines innovative features with its user-friendly design and its functionality. Binance Smart Chain, on the other hand, is a blockchain with smart contract functionality developed by Binance as a parallel chain to Binance Chain. Maybe we can call it Binance Chain 2.0.

Binance Smart Chain (BSC) main net was launched on September 1, 2020. BSC aims to increase the functionality and interoperability of the Binance Chain. According to the BSC white paper, the working architecture is based on a system of 21 validators with the Proof of Staked Authority (PoSA) consensus algorithm (Consensus).

BSC; a better solution than Binance Chain in terms of functionality, speed, and versatility. It has interoperability features with new generation solutions such as passive income in the DeFi world; it also stands out with the high transaction fees, intensive use of Ethereum, and the slow operation of the ETH 2.0 process.

BSC offers high-speed transactions and lower fees with a 5 second block generation time. The easiest way to connect to this new generation chain is to download the Binance Chain Wallet, a browser extension similar to MetaMask, and log into the wallet after a concise setup process.

How does it work?

Binance Smart Chain works with a 3-second block processing time using the consensus mechanism called Proof of Staked Authority (PoSA), in which participants stake BNB to be verifier. While cross-chain and oracle module is at the forefront in Binance Chain, we see that EVM compatibility and smart contracts are at the forefront in BSC. Binance Chain tokens were originally based on the ERC-20 standard. With subsequent updates, BEP-2 has been made compatible with BEP-8 and BEP-20 Smart Chain. In this way, the BNB token can be used easily between two chains bridged to each other when desired.

Gas fee

The Binance Chain wallet uses a standard gas fee of 20 Gwei for BSC. Any transaction is recorded in just a few seconds.

Some current estimates for gas fees in DeFi transactions included in the common Binance Smart Chain with 15 Gwei ges fees:

Token swap transaction (PancakeSwap): $ 0.226
Adding liquidity (BurgerSwap): $ 3,466
Liquidity removal (BurgerSwap): $ 0.519
Deposit (Venus Protocol): $ 0.230
Borrowing (Venus Protocol): $ 0.568
Withdraw collateral (Venus Protocol): $ 0.279

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