Hello, this is @Md Habibur Rahman. After the launch of Binance Smart Chain (BSC), there seem to be a lot of people confusing Binance Chain and Binance Smart Chain. Although they operate in parallel and are compatible with each other, the two need to separate the concepts clearly into different blockchain networks. In this post, I will explain the difference between Binance Chain and Binance Smart Chain.
#0. Brief summary
- Binance Chain and Binance Smart Chain are different blockchains.
- Binance Chain: A "optimized for fast transactions" blockchain that runs in parallel with Binance Smart Chain. (Launched in 2019)
- Binance Smart Chain: As the name of smart was added, it is a blockchain platform for developing and distributing dApps that can use "Smart Contracts". (Released September 2020)
- Binance Smart Chain is also compatible with dApps originally coded for Ethereum. (The wallet can also use the existing Ethereum wallet address)
- Binance supports both Binance Chain (BC) and Binance Smart Chain (BSC) withdrawals. You need to check which network you want to withdraw money.
- The token standard of Binance Chain is denoted by BEP2, and the token standard of Binance Smart Chain is denoted by BEP20. The BEP2 wallet address refers to Binance Chain, and the BEP20 wallet address refers to Binance Smart Chain (BSC).
#1. Binance Chain
Binance Chain: https://docs.binance.org/
Binance Chain, launched in 2019, is a blockchain platform developed by Binance.com to support Binance DEX, a decentralized exchange that allows users to trade with each other directly.
Binance Chain launched relatively quickly and, instead of being optimized for fast trading, it lacks the extensive features needed to support a variety of dApps.
- In other words, the focus is only on issuing Ethereum (ERC20)-based tokens on Binance Chain (BEP2) and trading P2P directly through Binance DEX rather than a centralized exchange (Binance.com).
This led to the launch of Binance Smart Chain. It is a more advanced blockchain than Binance Chain, as you might expect from the addition of the name Smart, but the relationship between the two is not an alternative relationship and operates in parallel.
#2. Binance Smart Chain
Binance Smart Chain: https://www.binance.org/en/smartChain
Binance Smart Chain, launched in September 2020, is a blockchain service that allows developers to build their own dApps using smart contracts.
While the Binance Chain above is not built to use these features, Binance Smart Chain is designed to offer the same kind of fast transactions while greatly expanding the available features. One of the most important features is that it is also compatible with Ethereum Virtual Machine (EVM), so you can run dApps ported from Ethereum.
However, Binance Smart Chain is not a rebranded version of Binance Chain, nor is it a Layer 2 or sidechain platform to expand Binance Chain. Binance Smart Chain is a completely separate, standalone blockchain that can continue to operate even when Binance Chain goes offline. At the same time, both chains are designed to work in parallel.
#3. What's special about Binance Smart Chain
The special thing about Binance Smart Chain is its low fees and fast transaction speed, but the most special thing is its EVM compatibility. Due to the compatibility of the EVM, DApps developed on Ethereum can be ported (imported to Binance Smart Chain as it is), and Ethereum wallets such as Metamask can be used as they are.
It is also possible to use DApps or tools as it is, and to use the same wallet address as the wallet address used in Ethereum on Binance Smart Chain, so if you have used Ethereum before, install a separate wallet and open an account. The feature that you do not need to create and learn how to use it significantly lowers the barrier to entry.
And just like Ethereum uses ETH as its native currency, Binance Smart Chain uses Binance Coin (BNB) as its native currency, so transaction GAS fees are paid in BNB, notETH.
Thanks everyone ❤️