Binance has launched a new Layer 2 network called opBNB to expand the BNB Chain ecosystem and increase transaction speed. This network utilizes Optimism's OP Stack technology to provide an Ethereum Virtual Machine (EVM) compatible scaling solution. In addition to the existing Layer 1 network, BNB Smart Chain, opBNB aims to offer advantages to users by providing fast transaction times and low costs. #Binance
opBNB: Increasing Transaction Speed and Reducing Fees:
opBNB is a scaling network built on top of Optimism's OP Stack, an Ethereum-based Optimism rollup technology. It aims to increase transaction speed and reduce fees. While BNB Smart Chain has a transaction speed of approximately 2,000 transactions per second and an average cost of $0.109 per transaction, opBNB will be able to support over 4,000 transactions per second and offer an average cost of less than $0.005 per transaction. #opBNB
BNB Chain Ecosystem and Layer 2 Solutions:
BNB Chain is a blockchain ecosystem supported by Binance, which includes the BNB Smart Chain along with various Layer 2 solutions. BNB Beacon Chain serves as the staking and governance layer of the BNB Chain, while BNB Greenfield is a decentralized data storage system, and zkBNB functions as a Layer 2 network. zkBNB is a solution based on zero-knowledge proofs or zk rollup technology and was launched as a testnet in September last year. #BSC
Significance of EVM-Compatible opBNB:
The BNB Chain ecosystem is expanding further through EVM compatibility. Arnaud Bauer, the lead solution architect of BNB Chain, mentioned that opBNB is EVM compatible and this will help the ecosystem grow. EVM compatibility means supporting applications that are compatible with the Ethereum execution environment, enhancing their interaction capabilities. This allows developers to easily port their existing Ethereum-based applications to other compatible platforms and expands the reach of decentralized applications. #EVM
Differences Between opBNB and Optimism:
Although opBNB is based on Optimism technology, it has different features compared to Optimism. opBNB provides a higher gas limit or block space compared to Optimism, enabling a greater capacity for computational operations. This means that more transactions can be processed on the opBNB network, enhancing scalability.
BNB Chain Ecosystem and Growth Objectives:
While the BNB Chain ecosystem is currently smaller compared to the Ethereum ecosystem, it is rapidly growing. Bauer stated that they are actively innovating to bring more user-friendly applications to the BNB Chain ecosystem and increase the Total Value Locked (TVL) metric. While Ethereum-based applications have a TVL exceeding $24 billion, the TVL of BNB Chain-based projects is over $3 billion. #ETH
Litigation Process and Project Focus:
The litigation process regarding the classification of BNB token as a security by the U.S. Securities and Exchange Commission (SEC) is still ongoing. Bauer declined to comment on the implications of the litigation results on the BNB Chain ecosystem. He mentioned that the project team's focus is to continue building on opBNB and other Layer 2 solutions.
In summary:
Binance's opBNB, a Layer 2 network added to the BNB Chain ecosystem, aims to increase transaction speed and reduce fees for users. EVM compatibility has the potential to expand the BNB Chain ecosystem and facilitate the migration of Ethereum-based applications to other compatible platforms. Despite being based on Optimism technology, opBNB offers higher gas limits, providing more transaction capacity and scalability. The BNB Chain ecosystem aims to grow rapidly through user-friendly applications and a higher TVL. The SEC litigation process regarding the BNB token is a matter of focus, but efforts to develop the ecosystem continue. $OP $ETH $BNB