Binance Smart Chain (BSC) is a blockchain platform developed by the cryptocurrency exchange Binance. It was launched in September 2020 as a parallel chain to the Binance Chain, with the aim of providing a platform for the creation of decentralized applications (dApps) and smart contracts.
BSC operates on a dual-chain architecture, which means it runs in conjunction with the Binance Chain. While the Binance Chain focuses on fast and efficient trading, BSC offers additional functionality by supporting the development and execution of smart contracts. BSC is compatible with the Ethereum Virtual Machine (EVM), allowing developers to easily migrate and deploy their Ethereum-based dApps on the BSC network.
BSC utilizes a proof-of-staked-authority (PoSA) consensus mechanism, combining elements of delegated proof-of-stake (DPoS) and proof-of-authority (PoA). Validators on the network are chosen based on their Binance Coin (BNB) holdings, and they take turns producing blocks and validating transactions.
One of the key features of BSC is its relatively low transaction fees compared to the Ethereum network, which has faced scalability challenges and higher gas fees during periods of high demand. This has made BSC an attractive platform for developers and users seeking a more cost-effective option for executing transactions and interacting with decentralized applications.
Binance Smart Chain has gained significant popularity and adoption, hosting various projects, decentralized finance (DeFi) protocols, and NFT platforms. However, it’s important to note that BSC is a centralized blockchain operated by Binance, which differs from the decentralized nature of other public blockchains like Ethereum.