Have you noticed lately Binance Smart Chain (BSC) is starting to get attention? Again after Binance Coin (BNB) recorded an all-time high jump (ATH) of $ 342 on February 19th.
Let's get to know BSC, a network that is competing fiercely with Ethereum!
BSC is also known as a blockchain that operates in parallel with Binance Chain. Unlike Binance Chain, BSC features smart contract functionality and customization with Ethereum Virtual Machine (EVM).
Interestingly, it is a stand-alone blockchain and can still operate even when Binance Chain is offline. Again, since BSC is compatible with EVM, it is launched complete with Ethereum and DApps mechanisms. This means, it is easy for developers to pull out their projects from Ethereum.
BSC works in two ways:
Consensus - It uses the Proof of Staked Authority (PoSA) where participants risk BNB to become validators. If they propose a valid block, they will receive a transaction fee from the enclosed transaction once.
In contrast to other protocols, there is no block subsidy from the newly mined BNB as BNB is not inflationary. On the other hand, BNB's supply will decrease from time to time as Binance burns coins.
Cross-chain compatibility - This allows users to transfer assets from one blockchain to another. From ethereum to BSC, from EOS to BSC and so on. The BEP-2 and BEP-8 tokens from Binance Chain can be exchanged for BEP-20.
At Binance exchanger, you will definitely notice some crypto currencies such as BTC, ETH, LTC, EOS or XRP that exist as ‘peggy coins’. All tokens are based on assets in their native chains. For example, you choose to lock 10 BTC to receive 10 BTCB in Binance Chain. At any time you can trade 10 BTCB at 10 BTC.
Following the flexibility features borne by BSC, assets from various chains can be used in the developing DeFi sector. For example, applications like PancakeSwap that allow its users to trade assets, engage in yield farming and vote. So are BurgerSwap and BakerySwap.
If the concept is widely understood, then understand why most developers have switched from Ethereum to BSC. For example, 1inch recently announced that it has joined BSC due to rising gas costs on the Ethereum network.