What is Binance Chain?

What is Binance Chain?

By MadMaxx | Psycho Crypto | 25 May 2020


Binance chain is the world's first multi currency blockchain that was built by, you guessed it, Binance.

This blockchain is a bit more special than the Ethereum and Bitcoin blockchains, and we'll see why in the next few lines.

In a more detailed definition, Binance chain is a cross currency blockchain network that allows for the creation of dApps, running of smart contracts and launching of new cryptocurrencies. It's a dream come true for most people.

Most of the time, the chain is paired with the DEX(I talked all about the DEX here), and the aim is to enable ultra fast and cheap cryptocurrency conversions. It says this on the website:

With Binance Chain and Binance DEX, our immediate goal is to quickly launch a platform that does one thing very well: exchange assets. “Binance Chain is a very simple chain in terms of application, but it can handle very large loads

One of the more fun aspects of Binance chain is that it allows you to launch your own tokens. It's a rather simple process, and one that I will go through in a post tomorrow. 

Binance chain's main proposition is to allow users to easily send and receive the native token of the platform, which is BNB, very fast and easily. You can also use the smart contracts like you would on the Ethereum blockchain, and see excellent results. DApps can also be developed on the chain, and with the aid of smart contracts made to run at specific times or settings. Since launch, over 45 dApps have been created on the chain, with more coming.

The main token of the platform is Binance Coin, or BNB, and it can be used for fee settlements such as gas payment and is also used as the fee when launching new cryptocurrency on the platform.

So with that out of the way, how is Binance chain different from the two main blockchains today?

 

HOW BINANCE CHAIN DIFFERS FROM THE BITCOIN BLOCKCHAIN

The Bitcoin blockchain has got to be the simplest blockchain implementation today, definitely because it was the first. It doesn't run smart contracts or enable dApp support, so the Binance chain is better than it in those areas. Also in scalability, the Binance chain is better than the Bitcoin blockchain. The Binance blockchain also uses proof of stake for verification, while the Bitcoin blockchain doesn't. Another up for Binance blockchain.

 

HOW BINANCE CHAIN DIFFERS FROM THE ETHEREUM BLOCKCHAIN

The Ethereum blockchain is the one blockchain that has had more features added to it over the past few years. It's now been upgraded to be scalable, and with Ethereum 2.0, it will also be upgraded to proof of stake verification, where master nodes can stake their ETH to verify transactions. The Binance chain is a sort of derivative from this Ethereum blockchain, one might even say it's a "hard fork" of some sorts.

 

That's it for my explanation on Binance chain! What do you think of it? Tell me down below.

Thanks for reading.

How do you rate this article?


8

1

MadMaxx
MadMaxx

In the eternal quest for crypto fulfilment. I'm an obese frog on the internet, what I say most definitely isn't financial advice.


Psycho Crypto
Psycho Crypto

Fun experiments with crypto!

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.