Binance cryptocurrency exchange launches a new blockchain in which BNB will act as a “native” token.
Called Binance Smart Chain, the new blockchain will provide users with the functionality of smart contracts, like Ethereum.
On Friday, representatives of the exchange published a white chain of a new chain:
The first practical and widely used smart contract platform is Ethereum. To take advantage of relatively developed applications and community features, BSC will be compatible with the existing Ethereum network.
Previously, the Binance team has already launched its own blockchain, called the Binance Chain, which, in particular, ensures the functioning of the decentralized exchange Binance DEX. But since it "does not provide sufficient freedom and flexibility to developers of decentralized applications (dApps)", Binance launches another blockchain of its own.
Binance Smart Chain will work in parallel with Binance Chain, they will interact:
Binance DEX will remain a liquid asset exchange platform in both blockchains. This dual architecture will allow users to create their decentralized applications and digital assets on one blockchain and take advantage of the fast trading of another.
It is noteworthy that BNB will be the native Binance Smart Chain token, which will allow token holders to participate in stake and receive rewards.
BNB will become the Binance Smart Chain steak token. This is an attractive opportunity for all interested in staking BNB holders to support the development of the Binance Smart Chain and receive rewards.
All Binance Smart Chain validators will be rewarded with commission fees in BNB coins. Since BNB is not an inflation token, there will be no rewards for mining, like Bitcoin and Ethereum, and gas commission will become the main reward for validators.
According to representatives of the exchange, Binance Smart Chain will support all developed Ethereum tools and provide faster and cheaper transactions.
Apparently, this event makes Binance a direct competitor to the second largest Ethereum public blockchain.