Binance Smart Chain (BSC) is one of the most popular blockchains today, designed to provide an efficient platform for decentralized applications (dApps) and decentralized finance (DeFi) projects. So how does BSC work and what benefits does it bring to users and developers?
1. What is Binance Smart Chain?
Binance Smart Chain (BSC) is a parallel blockchain to Binance Chain, developed by Binance. Launched in September 2020, BSC was created with the aim of optimizing performance and interoperability, while supporting smart contracts and compatibility with Ethereum Virtual Machine (EVM).
This allows developers to easily deploy applications from Ethereum to BSC without having to rewrite the entire source code.
2. How Binance Smart Chain works
Proof of Staked Authority (PoSA) algorithm: BSC uses the PoSA consensus mechanism, combining Proof of Stake and Proof of Authority, which helps speed up transaction processing and reduce transaction fees.
Compatibility with Ethereum: With EVM support, BSC allows developers to move or deploy dApps from Ethereum without needing to change much, maximizing the existing DeFi ecosystem.
Low transaction speed and fees: BSC can process thousands of transactions per second at a low cost, making it an attractive choice for both developers and users.
3. Advantages that Binance Smart Chain brings
Low transaction fees: One of the highlights of BSC is extremely low transaction fees, starting from just a few cents per transaction, compared to high fees on Ethereum during network congestion.
Fast transaction processing speed: Thanks to the PoSA mechanism, BSC ensures transactions are confirmed within a few seconds, suitable for high-performance applications such as decentralized exchanges (DEX).
Diverse ecosystem: BSC has become home to thousands of dApps, from DEXs like PancakeSwap (CAKE) to DeFi projects like Venus (XVS) or BakerySwap (BAKE).
Community support and development funding: Binance regularly organizes funding programs and hackathons to promote projects built on BSC, helping the ecosystem to grow.
4. Notable projects on Binance Smart Chain
PancakeSwap ($CAKE ): The largest decentralized exchange on BSC, providing services such as token swapping, farming, and staking.
Venus ($XVS ): A DeFi lending and borrowing platform based on the BSC blockchain, similar to Compound on Ethereum.
Axie Infinity ($AXS ): A famous blockchain game that leverages the speed and low cost of BSC to attract global players.
Conclusion
Binance Smart Chain is not only a powerful blockchain but also a launchpad for dApps and DeFi projects thanks to low fees, high speed, and strong community support. With the rapid development of the BSC ecosystem, investors and developers certainly cannot miss the opportunity to participate in this promising platform.
