Binance Smart Chain went live on mainnet September 1 2020. On that day, the parallel blockchain to Binance Chain enabled creation of smart contracts and the staking mechanism for BNB, a native token. BSC went on to capture $1.2 billion in total transactions in the month after its launch.
The Binance Smart Chain was first announced in April 2020. BSC, as an Ethereum Virtual Machine-compatible blockchain, features a Proof of Staked Authority (PoSA) consensus mechanism, creating an ecosystem of validators, token holders, developers, and users.
The Binance Smart Chain was supported by the Binance decentralized exchange, Binance DEX, cheap transactions that reach as low as 1 cent, high performance with a network capable of producing a block every 3 seconds, and cross-chain DeFi mechanisms that increase DeFi interoperability.
BSC launched its first testnet in May 2020, unveiling in July 2020 collaborators such as Ankr and Chainlink. In August 2020, Binance sponsored the Stake Wars to showcase how BNC staking works. The Band Protocol began collaborating with BSC, as well, just ahead of the BSC launch.
Already ahead of the Binance Smart Chain launch, several crypto projects had joined the Binance Chain community, including blockchain infrastructure and tool providers ChainLink, Band Protocol, Trust Wallet, Ankr, BSCScan, Bitquery.io, MathWallet, MyWish, CertiK, and Torus; DeFi apps, such as Swipe, Aave, 1inch.exchange, WazirX, DODO, dForce, Bounce.finance, Spartan Protocol, MCDEX, Cream, ForTube, DeBank; cross-chain liquidity providers RenVM, pNetwork, Thorchain, Ferrum.Network, Alpha Finance, and more, such as Dapp.Review, Ontology, Travala.com, Republic.co, Clutch, BCA, and Ignite.
Quantstamp, which audited other layer 1 protocol like ETH2.0, Avalanche, and Cardano, also audited the Binance Smart Chain, including the new chain’s consensus mechanism, the relayers that manage cross-chain communication between Binance Chain and Binance Smart Chain, as well as the genesis contracts.
By October 2020, Binance Smart Chain neared 250,000 distinct addresses.
Today that number is closing in on seventy million unique addresses.
Binance CEO Changpeng Zhao gave a Binance Smart Chain (BSC) update on October 9, noting BSC had processed 21 percent of Ethereum transactions and for fewer transfer fees.
Yesterday, #BinanceSmartChain handled roughly 21% of transactions compared #ETH, while only charging 0.6% of the fees, making #BSC about 35x cheaper.
Maybe this is bad for #BNB price (and nodes, for now), lol. But it’s good for users & developers. pic.twitter.com/86hRKjuPpq
— CZ Binance (@cz_binance) October 9, 2020
While BSC enabled 213,900 transfers compared to 1,019,446 handled by Ethereum, it charged just $13,000 in fees compared to on the Ethereum node which cost $2.2 million. The transaction fee on BSC was $0.06 per transfer, whereas on Ethereum it cost almost $2.16 per tx. CZ claimed based on this data that Binance Smart Chain was 35x cheaper.
BTCB is a BEP2/BEP20 asset wrapped (pegged) on Binance Chain/Binance Smart Chain with a 1:1 peg to BTC locked on the Bitcoin blockchain. BTCB is based on a centralized and trust-based model. The 1:1 peg is based on the amount of wrapped BTCB being equal to the amount of BTC locked in a public address. Binance is the issuer of the wrapped BTCB.
On the Proof of Assets page, you can verify the current supply for all locked and issued assets on the public blockchain. BTCB allows users to hold BTC while using the BTCB ecosystem without having to sell their BTC.
After announcing BTCB functionality in November 2019, Binance Smart Chain then integrated the Chainlink decentralized oracle network on its mainnet and elevated the solution as its recommended oracle. Chainlink thereafter was available for use by any and all BSC smart contracts.
Upon integrating Chainlink, Binance Smart Chain could then support a robust ecosystem of DeFi applications, and more. Chainlink’s oracles were accessible on Binance Smart Chain without dependencies on Ethereum.
By February 2021, PancakeSwap, an automated market maker (AMM) clone of Uniswap on the Binance Smart Chain, had seen its liquidity grow 1,003% for the year to date. According to CoinGecko, volumes were up 2,800% from $37 million on January 1 to $1.1 billion by February 17.
CoinGecko also showed that PancakeSwap’s native CAKE token had increased approximately 6,000% since its release last fall and is now trading hands at $12.77.
DappRadar reported that Binance Smart Chain (BSC) had begun to match Ethereum on certain key network data. “In January BSC reached new heights in terms of transaction volumes and unique active wallets. If the trend continues in February, BSC might become the number one blockchain in terms of transaction volume,” the researchers summarized.
In January 2020, the total transaction volume on BSC had amounted to $15 billion—- a considerable increase compared to previous months. However, according to DappRadar, Venus (XVS) was responsible for more than 90% of the total transaction volume with $24 billion of value transferred during the first third of February.
One of the dapps being built on EOS, Effect Network, a decentralized finance platform connecting companies to the global workforce which claims to be the “most-used and largest project” on EOS, left for BSC. Effect Network cited “unfulfilled promises to address the many issues that plague the EOS mainnet.” Effect Network boasts clients such as Kraft Heinz, Linus Tech Tips, and the United Nations.
Effect Network CEO Chris Dawe explained the move to BSC is due to his confidence in the long-term vision of the Binance ecosystem. “Look at what the Binance organization has accomplished in only the last three years,” said Effect Network CEO Chris Dawe. “It is a testament of dedication, hard work but above all its laser-focused vision. The amount of products and services our clients and workforce can tap into with the Binance ecosystem are amazing and will help accelerate the growth of the Effect Network like never before.”
The NFTs On Binance Smart Chain
BSC has had many other projects built on it in just a short time, including NFTs. BakerySwap, for instance, is a dApp marketplace with art NFTs, and Battle Pets is a gaming NFT akin to Pokemon. PancakeSwap features financial NFTs in the form of rabbits which have a redeemable value for CAKE, the project’s native token.
The Main BSC Use Cases
In January 2021, Binance outlined its vision and roadmap. By that time, it had reached numerous milestones. In mid-December 2020, Trust Wallet issued TWT on BSC, airdropping millions of dollars in tokens to Binance users. BSC daily transactions related to TWT reached as high as 470,000, according to data from BSCscan.com. Binance Launchpool in January 2021 launched BTCST, a BSC-based token anchored on Bitcoin computing power. BTCST corresponded to 0.1 Th/S of computing power and its income. A total of $1.255 billion in deposits, including 10.43 million BNB, 18,600 Bitcoin, and 186 million BUSD, was staked for BTCST.
BSC supported by January 2021 42 cryptocurrencies across the chain to BSC, the total value of cross-chain assets having reached $1.36 billion. The total market value of Binance BTokens reaching $556 million.
BSC supports the propagation of algorithmic digital assets:
Ditto – elastic supply token on BSC
bDollar – algorithmic stablecoin on BSC
Aggregation and Integration
BSC also features numerous solutions aggregating and integrating multiple yield and exchange sources:
beefy – yield optimizer
Bearn.fi – cross-chain auto-yield farming
OpenOcean – DEX aggregator)
Xend -DeFi for credit unions and cooperatives
Cross-chain and Multichain
BSC is dedicated to offering digital assets that are interoperable across multiple blockchain networks.
BTCST – A token anchored on Bitcoin computing power
Anyswap – a cross-chain exchange
NerveNetwork – cross-chain asset network
PolyNetwork – cross-chain network
renVM – multichain solution
The gaming industry is an early use case for blockchain networks like BSC.
Blink – gaming token
Rocketgame – decentralized gaming platform
Community and Social Tokens
BSC is also creating an environment for NFTs and specialized tokens for online communities and social networks.
Chilz – fan tokens
Realy – luxury NFT platform
BSC supports the creation of synthetic assets or assets that combined
Mettalex – derivatives exchange
BSC provides developers the proper tools to build advanced DeFi services such as liquidity mining:
Allianceblock – decentralized capital market
Infrastructure and Tools
Many solutions are popping up on BSC that help developers deploy smart contracts, monitor data, and more:
Bitquery – blockchain data
PARSIQ – cross-chain monitoring
Tenderly – smart contract monitoring
BSCscan – blockchain explorer
ChainIDE – smart contract deployment
Mywish – smart contract creation
Nownodes – blockchain infrastructure
April 2021 Network Interruption
Although the BSC chain did not go down in April 2021, the intermittent lack of service and scaling issues with things that connect to it might lead a user to think that. What we witnessed months after the release of BSC was an aggressive campaign to bring users to BSC through low fees and high performance. When the chain and supporting infrastructure run smoothly, the user experience is pretty good so the attraction is clear.
Increased throughput and blocks packed full of transactions and trades, propagating across the Binance Smart Chain network once every three seconds, puts a great deal of pressure on infrastructure providers, analytical tools, charting providers and even node operators, to keep their services operational.
Binance Smart Chain is for all intents and purposes Ethereum with more centralised consensus and no miners. Tools designed for Ethereum can be adapted to work on BSC with ease, but these tools are generally designed to fit the properties of the Ethereum blockchain, not the 150TPS that can be evidenced during peak demand on Binance Smart Chain.
Binance Smart Chain Charts
Binance Smart Chain (BSC) is quickly becoming one of the most recognized blockchain networks for running smart contract-based applications. The aim of the platform is to enable developers to build decentralized applications (dapps) so users can manage their digital assets cross-chain with low latency and large capacity.