What is Binance Smart Chain?

Binance is a popular cryptocurrency exchange with a strong focus on blockchain projects and token sales. Binance has also made several investments in other companies, funds, and token-based projects to support the booming crypto industry. In mid-September 2018 Binance announced the creation of its own chain called “Binance Chain” as well as its first smart contract token that runs on top of this new chain: Binance Coin (BNB). This article explains what a blockchain is, how it works, and why you should care about them. It then provides a high-level overview of different flavors of blockchains and details about one specific type called “smart contracts”. In this article, we will take an in-depth look at what exactly Binance Chain is and what makes it different from other blockchains out there.

What is a blockchain?

A blockchain is a decentralized database that can be used to store information. It is a type of database that is replicated across multiple computers/nodes to ensure that data is not corrupted or tampered with. Blockchains are used to keep track of digital assets like cryptocurrencies (e.g. Bitcoin, Ethereum, Litecoin, etc.), but can also be used to keep track of other things like contracts, supply chains, property rights, and other assets that have value. When information is entered into a blockchain, it gets replicated across all nodes in the network, and all of these nodes get updated simultaneously. This means that when information is modified, it’s done so across the entire blockchain, ensuring that all nodes have the same information. Because of this, blockchains are often considered to be extremely secure.

Why should you care about blockchains?

Blockchains and the decentralized technologies behind them make it possible for people to collaborate and transact directly with each other without a central authority. It is these characteristics that have made blockchain technology so revolutionary and disruptive. Blockchains are built on top of a decentralized architecture that leverages computers around the world. There are no central servers, and no single person (or company) controls the network.

What is Binance Chain?

The Binance Chain is the blockchain on which Binance Coin (BNB) will be running as a smart contract token. Binance Chain aims to provide a reliable and scalable infrastructure for the exchange, but also serve as a hub for the blockchain community. At the moment of writing, Binance does not accept new token listings, but it has been vocal about its plans to open up the Binance Chain for new projects to list their tokens, or “Initial Coin Offerings” (ICOs). Binance Coin (BNB) is the first token to be running on the Binance Chain. The BNB token is used as a utility token on the Binance platform. Users can pay their exchange fees using BNB, and traders may receive a discount on their fees when paying in BNB.

The BNB Token on the Binance Chain

The BNB token on the Binance Chain has the same function as the BNB token on the Ethereum blockchain. It is used to reduce the trading fees on the Binance exchange. Traders who hold a certain amount of BNB in their account receive a discount on their trading fees. The discount is 50% if you hold 10 BNB tokens or more, and decreases in 1% increments for every 1 BNB below that amount. The BNB tokens on the Ethereum blockchain are ERC-20 tokens, meaning that they are based on the Ethereum blockchain. On the Binance Chain, BNB tokens are ERC-223 tokens, a new standard for tokens that has been proposed in an effort to solve the problem of scalability with the Ethereum blockchain. The Binance Chain has been designed to be a high-performance blockchain that can handle many transactions per second. At the time of writing, Binance has not opened up Binance Chain for trading, so we cannot be certain of its performance just yet.

How to purchase BNB?

You can purchase BNB on exchanges, much like you would purchase any other cryptocurrency. The most popular exchanges to purchase BNB are Binance, Binance DEX, and Binance Coin FIAT pairs like Coinbase. To purchase BNB on Binance and Binance DEX, you need to first deposit Bitcoin or Ether into your exchange wallet. Once your funds are in your exchange wallet, you can exchange them for BNB tokens. To purchase BNB on Coinbase, you need to first purchase BTC or ETH with FIAT (US dollars) through the Coinbase website or mobile app. Once you have your BTC or ETH, you can transfer it to Binance to exchange it for BNB.

Conclusion

Binance is one of the world’s leading cryptocurrency exchanges and is also one of the top blockchain-focused companies. On September 12, 2018, Binance announced the creation of its own blockchain called “Binance Chain”. The Binance Chain is the world’s first decentralized blockchain that can host many different types of decentralized apps (dApps). Binance Chain uses a delegated proof-of-stake (DPoS) consensus mechanism, the same as its competitor Ethereum. Binance has stated that it plans to open up its blockchain for new projects to list their tokens, or “Initial Coin Offerings” (ICOs). The BNB token is the first token to run on Binance Chain.

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