BNB Chain Ecosystem

What is Binance Chain network

Build N Build Chain is one of the highly innovative platforms. It was created as an addition to Binance Chain, the main network of the platform designed for decentralized exchange of crypto-assets. And it is the decentralized format that is the main difference between it and Binance Smart Chain.

BNB Chain is actually two networks (BNB Beacon Chain x Binance Smart Chain) merged in 2022. At the same time, both systems operate separately, performing different functions.

Shortly after its launch, users began to notice that the Binance Chain, which is focused on fast trading, was often subject to congestion. Instead of raising transaction fees, as is done in Ethereum (gas fee estimate), the blockchain developers decided to create some kind of hybrid that would help solve the scalability problem. That’s how the BNB blockchain came to be. According to the developers themselves, it combines the high throughput of the Binance Chain with the rich functionality of smart contracts.

A little history about the creation Binance ecosystem

The idea to create Binance Coin cryptocurrency belongs to Changpeng Zhao, the founder of the eponymous crypto exchange Binance. Before that, Changpeng worked at such large IT companies as Blockchain.info, OKCoin and the Tokyo Stock Exchange.

In 2014, Changpeng Zhao sold his house and invested the proceeds of $600k in BTC. When the BTC rate collapsed 3 times, Zhao did not break down and decided to create his own crypto project. So in 2017, the idea of launching the Binance crypto exchange and issuing his own BNB tokens appeared.

Today Binance is the symbol of the cryptocurrency world as a whole.

Key products of Binance blockchain

There are many different products and services launched in the Binance Chain ecosystem from different areas. Here are a few of the key products that Binance offers today:

• Binance Labs;
• Launchpad;
• Crypto Exchange;
• Trust Wallet;
• Charity program;
• Academy and much more.

Key elements of BNB Chain

Let’s take a look at the key mechanisms used in BNB Chain to understand how the blockchain architecture is built.

The increased compatibility with ETH and EVM enables developers to deploy their own DApps from the Ethereum ecosystem to BNB Chain and migrate already completed solutions from one blockchain to another without hassle and delay.

BNB Chain is not an off-chain, it is a full-fledged network that runs in parallel.

Users can stake the BNB, thereby maintaining the stability and security of its operation, receiving a good reward for this.

This technology defines the key parameters and rules of coin creation. It also controls their functions and enables the creation of digital assets, including NFTs, stablecoins and utility tokens.

The BNB Chain ecosystem has thus expanded significantly. In addition, includes services such as:

• BNB Greenfield. It is a blockchain built on the Cosmos/Tendermint infrastructure that achieves high security controlled by Tendermint Proof-of-Stake algorithm.
• opBNB. An L2 solution based on the Optimism stack (OP Stack) that achieves scalability. It also improves performance, provides low transaction fees and efficient transaction processing.
• zkBNB in test network mode. Implemented to combine hundreds of transactions into a single package (Rollup Block) and generate a cryptographic proof in the form of a Zero-Knowledge Argument).
• BNB Chain Layer 2. It is a state-of-the-art Layer 2 solution that is EVM compatible to work with smart contracts and ERC-20 based networks.

Projects on BNB Chain

BNB Chain is a huge environment and advanced features that have made the Web 3 and DApps industry show rapid growth.

And many projects from various fields have been launched on the basis of BNB Chain.

Advantages of BNB Chain

• High speed of transaction processing;
• Low commissions;
• Flexible conditions for project development;
• Ability to launch smart contracts, creating decentralized applications and DeFi protocols;
• Crosschain capabilities. Binance Bridge technology allows to move tokens from most popular blockchains to BSC;
• EVM compatibility;
• Interoperability with other chains.

Token BNB

Binance Coin is a native token of the entire Binance ecosystem that was released in 2017. In a short time BNB took the leading position among all cryptocurrencies on the market in the capitalization ranking.

Note that the token was first launched on the ETH blockchain (ERC20), then migrated to the main Binance network.

BNB token is needed for:

• Fee payment for transactions;
• Binance Exchange payments;
• Pay with Binance card;
• Participate in token sales;
• Trading, staking and farming on DeFi.

The token BNB use can be seen even in traditional sectors, such as for booking hotels and airline tickets on Travala. Therefore, in fact, the BNB token has gone from being utilitarian to becoming a universal means of payment.

Conclusion

BNB Chain is a powerful and feature-rich blockchain platform that offers high performance, low fees and extensive opportunities for developers and users. With a strong team, an active community and significant potential for growth, BNB Chain continues to occupy an important place in the world of cryptocurrencies and decentralized technologies.