What is Binance Smart Chain And What Features Does It Have?

Like Ethereum Blockchain, Binance has a separate blockchain known as Binance Smart Chain (BSC) that is designed to implement applications that are based on smart contracts. The BSC and BC runs after one another that are offering users the best of both worlds i.e. smart contract functions of BSC and larger transactions capacity of BC. Not only that but BSC also implements Ethereum Virtual Machine (EVM) to run Ethereum-based applications like Metamask. The main goal of the platform is to allow developers to run decentrazlied applications known as dapps in order to help customers manage their digital assets in better way.

In 2021, during Ethereum's congestion and due to high gas fees charged by Ethereum blockchain for transactions, Binance Smart Chain (BSC) found gap to fulfill and it was the time it gained popularity in crypto world. The developers and investors found a new alternative that charges less fees and is secure to use. To counter the price of BNB over $300 in February, the community of BSC reduced the gas fees from 15 Gwei to 10 Gwei which made the network even more attractive to the developers and investors because it was cost-effective and stable alternative to Ethereum blockchain.

Binance Smart Chain is an independent blockchain that is working alongside BC. It means if the BC ceases to exist, the Binance Smart Chain (BSC) will still run it's business and technical functions.

BSC is compatible with ethereum because the smart contracts of BSC supports Ethereum. It helps the developers to create or move DApps and utilities to the BSC network.

No matter that BSC is not a 2 layer solution but still BC and BSC can communicate or link with each other. It helps users of both to transfer their cryptocurrencies in between BC and BSC easily.

In order to maintain security of the blockchain and to reach the network consensus, the BSC combines both PoS and Proof of Authority (PoA). The Proof of Authorty is used to counter Byzantine attacks and other 51% attacks on the network. In this model, a validator is selected who has staked BNB. The validator has to confirm the transactions on the network and to produce blocks in a PoA manner that helps them to maintain their reputation in the community. The staking of BNB helps to elect the validator. With this consensus model, the block time is made to approximately 3 seconds. If the block is added by the validator to the chain, he will get the transaction fees incurred in that block.

To make the BSC network secure and attack free, a validating quorum is required. Each day or 24 hours, the participants of BNB elect 21 validators for the blockchain. Remember everyone can be a validator but for this you need to be in the top 21 nodes that have the highest stake of BNB on the network. The BSC platform has epoch period where the validators can update BSC network. Each epoch has 240 blocks that lasts around 20 minutes. Moreover, BSC also uses slashing to remove the incorrect transactions. The slashing helps to expose the attacker.

The Binance Smart Chain (BSC) is known as the fastest and cheap DApp platform that allows investors and developers to use it as Ethereum blockchain alternative. As per report of February 2021, the users of daily active wallets were increased to 50,000 that have total transaction volume of $15 billion. As of now in 2023, the daily active wallets are more than 800k that is huge number of users. Due to the high gas fees and slow transaction rates, we will surely see the low cost, fast, and secure blockchains like BSC, Cardano, and Polkadot to be used the most in 2023.