#Binance is one of the largest cryptocurrency exchanges in the world and has recently been gaining attention with its growth in the DeFi ecosystem. Binance Smart Chain (BSC) is a blockchain network developed by the Binance exchange. #BSC is a network that works similarly to #Ethereum and integrates with the Binance exchange. BSC offers Binance users access to #DeFi applications with faster speed and lower transaction fees. In this article, we will learn more about Binance Smart #Chain and the DeFi ecosystem.
What is Binance Smart Chain (BSC)?
Binance Smart Chain (BSC) is a blockchain network developed by the Binance exchange. BSC hosts smart contract based applications similar to Ethereum. BSC uses the Smart Contract Virtual Machine (SVM), which has a programming language similar to the Solidity programming language used on the Ethereum network. BSC's main goal is to provide lower transaction fees, faster transaction confirmations and higher transaction capacity.
BSC uses the Proof of Stake (PoS) consensus mechanism. BSC's consensus mechanism is powered by the Binance Coin (BNB) token. As BSC is integrated with Binance exchange, Binance users can redeem their BNB using BSC.
BSC has a network structure similar to the Ethereum network. Because BSC is compatible with the Ethereum Virtual Machine (EVM), you can easily migrate portable applications (dApps) from the Ethereum network to BSC.
What is DeFi?
DeFi is short for Decentralized Finance and stands for decentralized finance. DeFi enables financial transactions to be carried out without using central financial institutions (banks, insurance companies, etc.). DeFi applications use decentralized blockchain technology to automate transactions and offer investment opportunities.
DeFi applications cover many different areas. These include lending, borrowing, providing liquidity, bartering, derivatives, mutual funds, insurance, etc. is found. DeFi applications run on many blockchain networks such as Ethereum.
