Binance chain vs binance smart chain

binance chain vs binance smart chain

Learn more about BNB Beacon Chain, BNB Smart Chain, and the Binance ecosystem

The Binance ecosystem uses the BNB Chain to support its smart contract tokens. Find out all you need to know about BNB and the BEP2 and BEP20 tokens you can find inside your Exodus wallet.

In this article:

  • What kind of blockchain is BNB Chain?
  • What kind of token is BNB?
  • What BEP2 tokens can you use in your wallet?
  • What BEP20 tokens can you use in your wallet?
  • Do I need BNB to send my BEP2 and BEP20 tokens from Exodus?

What kind of blockchain is BNB Chain?

The BNB Chain has a dual blockchain structure formed from the BNB Beacon Chain (BNB network) and the BNB Smart Chain (BSC network).

Binance chain vs binance smart chain

These are:

  • Standalone blockchain – Binance required the BSC to stand alone from the Binance Chain. Decoupling the two blockchains ensured no service interruptions if one of them failed. Separating the two networks also enabled Binance to incorporate new technologies that were either not utilized before or were used but had undesirable side effects.
  • Staking – BSC uses a staking model to ensure participation in governance and block creation from the BSC community.

    However, the biggest reason that Binance adopted staking instead of mining was that they prioritized network speed at the expense of decentralization and security.

Binance chain vs binance smart chain reddit

In the case of BSC and EOS, that number is 21 validators.

PoA, as it applies to Binance Smart Chain, represents a model in which validators are chosen or picked by a central party, in this case, Binance. The exchange vets all validators before they can be voted on by the delegators (token holders.) Think of it like a validator KYC where Binance approves who gets to participate in block creation.

Even though merging the PoA with the DPoS consensus models increases network centralization, it would seem that Binance was willing to make the trade-off to attain high network throughput. BSC can achieve a block generation time of 3 seconds compared to 13 for Ethereum and 10 minutes for Bitcoin.

Binance Smart Chain Ecosystem

The BSC ecosystem is an ever-growing space with new applications and innovations adopted from the Ethereum community every day.

Binance chain or binance smart chain

Ethereum DeFi dapps.

Binance Smart Chain, according to DappRadar, is currently growing at an amazing speed.

Ethereum vs Binance Smart Chain: Transaction Fees

As the Ethereum vs Binance Smart Chain race continues, it is important to consider the gas fees of both platforms. With the high growth rate of Ethereum, the network has become more congested, which translates to high fees. This issue is discouraging developers that had the intention of creating their dApps within the Ethereum network.
With the high gas fees, it may discourage users from utilizing an innovative dApp. Some developers are opting for Binance Smart Chain because of this reason.

Binance chain network vs binance smart chain

How do I add a custom token?

What kind of token is BNB?

BNB is the utility token that powers the BNB Chain ecosystem. It is generally used for paying network transaction fees (gas) and as a way of reducing trading fees on Binance. BNB used to be known as Binance Coin but is now BNB (BNB).

Originally, Binance released BNB as an ERC20 token running on the Ethereum (ETH) network.
However, after the Binance team created their own mainnet blockchain anyone with ERC20 BNB tokens could swap these on Binance for native BNB. Learn more about how to swap ERC20 BNB for native BNB.

In the Binance ecosystem, and in your Exodus wallet, BNB exists on the BNB (BEP2) network and on the BSC (BEP20) network.

What BEP2 tokens can you use in your wallet?

Within the BNB network, all tokens have to comply with the BEP2 standard which is a set of rules for token management.

Binance chain network or binance smart chain network

OS and Android platforms. Supported browsers are Google Chrome, Brave, Firefox, and Microsoft’s Edge.

Metamask enables its users to explore blockchain applications on both Ethereum and Binance Smart Chain as well as buying, selling, sending, and swapping tokens. For added safety and security of assets, Metamask supports hardware wallet integrations with companies such as Trezor and Ledger, among others.

Binance Bridge

The Binance Bridge is a project run by Binance that serves as an interoperability tool amongst BC, BSC, and other blockchains serving as a way to bring tokens minted and issued on other non-compatible blockchains to the Binance DEX and Smart Chain ecosystems.

Using the Binance Bridge, anyone can create a new token pegged to the value of the original token on the third-party network. For instance, think of Eth coins on Ethereum.

Cronos chain vs binance smart chain

Cross-chain compatibility increases token liquidity, utility, and value.

  • EVM-compatibility – choosing to fork the Geth Ethereum client makes BSC more familiar to Solidity developers, which gives the Binance network easy access to an already vibrant community of developers and users. Additionally, since it’s cheaper to run dApps on BSC, it makes it easy to port applications over from Ethereum, which is faster and cheaper to execute.
  • Credible platform – Binance is one of the most popular exchanges, and its credibility is shared across all its platforms, including the BSC.
  • Binance smart chain vs binance smart chain mainnet

    With the coming of Binance Smart Chain, crypto enthusiasts have wondered how Ethereum vs Binance Smart Chain (BSC) will play out if put side to side. Is Binance Smart Chain better than its counterpart, is the opposite the case or are both swinging hand in hand?

    Binance Smart Chain Vs Ethereum: Smart Contracts

    When it comes to the Ethereum vs Binance Smart Chain discussion, Ethereum rocks the realm of the smart contract at the moment. This is one reason many dApps are attracted to Ethereum, and there has been an intense growth in the ecosystem.

    Tremendous growth has resulted in the rise of gas fees, which is scaring people into looking for alternatives. One of these alternatives is the Binance Smart Chain.

    Binance chain wallet vs binance smart chain wallet

    The wallet’s functionality may be limited, but it gets the most important job done, and Binance is constantly improving it.Trust Wallet

    The Trust Wallet is a standalone mobile wallet for iOS and Android owned and maintained by Binance. It supports several features related to the BSC, including interacting with BSC dApps, swapping BEP-2 with BEP-20 tokens, buying and selling thousands of digital assets, and staking tokens for rewards.

    Trust Wallet was the first wallet to support BSC. It also supports several other network protocols, including Ethereum, Tron, EOS, and Solana.

    Binance chain bep2 vs binance smart chain bep20

    Until Binance invests in local innovation on the BSC network, it will always exist under the shadow of Ethereum.

  • Deflationary tokens – BNB tokens are regularly undergoing a coin burn leading to fewer outstanding balances. It may seem like a positive thing to reduce the supply, which often leads to a growing token price, but some negative scenarios may arise. For instance, a growing demand with a shrinking supply could lead to a supply squeeze, leading to runaway prices, consequently leading to higher transaction costs.
  • These are just some of the bigger concerns facing BSC.
    However, they do not seem to deter its growth which could only be interpreted as a good thing.

    Closing thoughts

    BSC is a solid blockchain network even though it, arguably, brings less in the way of innovation compared to Ethereum.

    Furthermore, staking models are more environmentally friendly and support faster block generation.

  • Ethereum compatibility – Ethereum, the most popular smart contract platform, did the heavy work for Binance. It had a large user base, miners, and development community. The network has beaten the competition despite problems including high gas prices and security vulnerabilities.
    Binance decided not to reinvent the wheel and instead used what worked for Ethereum with a few modifications, notably the consensus mechanism. Copying Ethereum’s source code makes cross-chain interoperability simpler, enabling native Ethereum dApps to be easily transferred to BSC.
  • Native Cross-Chain Communication – even though Binance opted to create BSC as a parallel chain to BC, it made sure to design native cross-chain compatibility between the two blockchains.
  • Binance chain vs binance smart chaine

    It is a smart contract platform mimicking the functionality of Ethereum and other dApp platforms such as Tron and EOS.

    It’s interesting to note that Binance opted to launch a second blockchain after Binance Chain instead of upgrading it, given that it was possible. According to the exchange, introducing the smart functionality to the BC blockchain would have bogged down the network speed making it less efficient.

    Smart contracts have a history of bogging down their host networks, as witnessed in the December 2017 CryptoKitties crisis on Ethereum and recently, the Solana network.

    The best option for Binance was to launch a parallel blockchain to host smart contracts with added compatibility with Ethereum, the leading dApp network.

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