Bitcasino World Cup Raffle Campaign - Win the VIP World Football Championship Experience
1.8 k

A Look at The Binance Smart Chain (BSC) – How Does It work?

The Binance Smart Chain (BSC) is the latest addition to Binance’s ecosystem. This fourth-generation has built blockchain to bring advanced features and DeFi capabilities into the network. The BSC was devised as an independent blockchain to the network’s original Binance Chain project.

The developer’s decision to pursue a dual-chain architecture has paid off. The new blockchain increased both the usability and functionality of the network’s utility token, BNB. The additional benefits gained from the new network have translated over into direct gains for BNB holders.

Benefits of The Binance Smart Chain

There are many benefits that users now enjoy, thanks to the BSC’s structure. Primarily, Binance users now have direct access to DeFi features such as staking and farming. It built the BSC from the ground up to encourage developers to create and run these applications within the Binance ecosystem.

Smart Contract Support

Unlike its predecessor, Binance Chain, BSC supports the creation and running of smart contracts. Users can build their decentralized apps and digital assets with ease utilizing the network’s interface. Additionally, the BSC was designed to be compatible with the Ethereum Virtual Machine (EVM). This approach allows developers to deploy Dapps that It originally built on the Ethereum blockchain to the BSC without altering the core coding.


One of the main benefits achieved by the BSC integration is cost-effectiveness. Currently, Ethereum’s network is congested and experiencing record high GAS fees. Ethereum applications utilize GAS to complete instances of the EVM. This congestion directly equates to higher costs for the average user. In contrast, BSC users can conduct complex transactions for pennies. It’s these cost savings that have helped to drive more interest in the BSC.


The BSC was designed to be highly responsive. The network offers high performance and can conduct multiple transactions when it takes Ethereum users to complete one. For example, Ethereum is structured to approve blocks approximately every 5-minutes. In comparison, BSC is capable of producing a block every 3-5 seconds. Faster block times equal a more responsive network with more scalability.


The BSC is far more flexible than the Binance Chain. The network is capable of cross-chain transactions such as atomic swaps. This functionality helps to improve the network’s decentralized exchange (DEX) capabilities. These transactions also play a vital role in helping to reduce congestion. The BSC was designed to offer access to all the latest DeFi features available to users. The network supports non-fungible tokens (NFTs), pegged coins, staking, farming, and P2P lending.

How Does The Binance Smart Chain Work

The BSC introduces a new token standard to the market, BEP-20. BEP-20 allows developers to create and issue tokens that can represent all types of assets, ranging from real-world options such as real estate all the way to decentralized blockchain tokens. Notably, BEP-20 can be considered BSC’s version of the popular ERC-20 standard first introduced by Ethereum in 2017.


One of the first benefits realized by BNB token holders was the ability to stake their tokens. The BSC supports staking directly from the network’s wallet. Staking is one of the most popular DeFi options available today. Users can earn rewards with very minimum effort when they stake their BNB.


Farming is another top feature that has become popular over the last few months. Farming is a bit more flexible than staking because it requires no lockup period or early withdrawal penalties.

NFT Creation and Support

The BSC has also enabled the network to enter the NFT market. NFTs are one of the fastest-growing sections of the blockchain industry. These tokens provide an extra layer of scarcity to digital assets. Notably, there are already NFTs selling for millions of dollars.

Pegged Coins

Pegged coins are another development that has seen a lot of attention this year. Pegged coins derive their value from other assets. These assets can be pegged to precious metals such as gold or fiat currencies. They can also receive their value from other cryptocurrencies or a basket of currencies. The BSC has simplified the creation and issuance of these tokens.


The Binance Launchpad directly leverages the BSC features to provide Initial Exchange Offering (IEO) capabilities to the network. IEOs are a crowdfunding strategy designed to remove some of the technical and financial barriers encountered by early ICOs. An IEO directly offers tokens to users via the exchange rather than hosting a crowdfunding event. The benefits are that companies gain instant access to Binance’s huge network of users.

Consensus Mechanism

The BSC gains much of its speed and efficiency from using a Proof-of-Authority (PoA) consensus mechanism. Unlike a Proof-of-Work network, like Ethereum, a PoA network uses only select nodes to conduct transaction approvals. This method is a bit more centralized than PoW networks like Bitcoin but offers more scalability and faster transaction times.


The BSC introduces some community governance systems to provide users with more say on how the network develops. BNB holders can submit proposals for adding trade pairs or other vital upgrades. These proposals are then put to the vote, with BNB users making the final approval decision. Community governance mechanisms serve an important role in keeping a project’s community involved and cohesive.

History of The Binance Smart Chain

The official BSC mainnet went public on September 1, 2020. This event was quickly followed by a campaign to drive Dapp developers to the network. Specifically, Binance hosted a $100 million developer seed fund to encourage more participation from the market. This fund paid off quickly as there are now over 50 Dapps live on the BSC.

According to Dappradar, BSC’s transaction volume hit a record high of $745 billion in February 2021. Impressively, the network surpassed Ethereum in terms of unique active wallets entering service that month. Specifically, It opened 108,000 new BSC wallets in February 2021 alone.

The Binance Smart Chain – Another Key Maneuver by One of the Biggest Players in the Game

Bitcoin live price
price change

The decision to launch the BSC is one of Binance’s biggest moves. The network is now free from a reliance on Ethereum. Additionally, the timing was impeccable. Developers have been hungry for cheaper DeFi alternatives ever since Ethereum’s GAS prices peaked. As such, the BSC now offers a viable alternative to users and developers alike. You can expect to see significant growth on this network over the coming months as more Dapp developers shift to this more efficient alternative.

Stay up to date with our latest articles

More posts

AssetDash – Bring All Your Portfolio Trackers to One Place

AssetDash is an all-in-one portfolio tracker for cryptocurrencies, stocks, DeFi, and NFTs, aiming to make digital asset tracking quick and easy. The app is currently available in the iOS App Store, ranking 1st in the NFT portfolio tracker app section. This AssetDash review looks closer at the app’s features, potential, and the team’s plans for the future. Read on to discover how you can track your investments more efficiently. What is AssetDash? Crypto enthusiasts with large portfolios can have difficulty…

The Odyssey Metaverse – An Empowering Digital Playground from Miami-Based Musician Lyfe

The Odyssey Metaverse is a new project developed by Antonio Trincao, a.k.a. Lyfe, a Miami-based musician with solid experience in entrepreneurship and technology. The project aims to empower people to make their dreams come true. Moreover, it promises a new and unique Metaverse experience redefining crypto and NFTs. Read on to discover more about The Odyssey, its creator, Lyfe, and his vision behind the project! What is The Odyssey? The virtual world is in full swing, spurring new and interesting…

Solidity Finance – A Smart Contract Auditing Company with a Robust Methodology

As the adoption of blockchain technology gains popularity, it becomes increasingly important to ensure the space is secure. A wide range of industries has started to use smart contracts for various applications and financial services. Some of the great features of smart contracts are the immutability and transparency that they offer. However, there have been numerous instances in which weaknesses have been present in smart contracts. Solidity Finance is a distinguished team of auditors and has a robust methodology to…

$POODL Token – The Once-Abandoned Meme Coin Aiming for DeFi Glory

If you were familiar with the meme-coin craze, you have likely heard of POODL. It is one of the oldest meme coins in the market whose story is rather impressive. Like many other meme coins, a developer created POODL, then did a pump-and-dump scheme on the initial token holders. Attempted to run away with the profits but the community rescued the token. The community behind this project believed in its potential and took action to revive it. From forming an…

Binance NFT Marketplace – A Guide for Beginners

Many people are interested in buying NFTs for a variety of reasons. First and foremost, there's the collector aspect to it all. Non-fungible tokens, like stamps, trading cards, and vinyl records, appeal to collectors because of their rarity. The potential value of NFTs is also of interest to collectors. Rare NFTs managed to collect millions of dollars from some buyers. International speculators are taking note of these prices, hoping to profit from what may be the next great collectible. It…

A New Way to Earn Crypto Income on Your Shiba Inu Coin with Breezen

Investing in cryptocurrencies is increasingly popular. Many exchanges are now providing various investment options to help you boost your account balance.  However, market volatility may suddenly become a severe problem if prices fall. Shiba Inu (SHIB) is the perfect example of this argument. After peaking at $0.0008, SHIB fell well below the $0.0002 threshold. In the past, massive sales have often led to market crashes. Strong sell-offs regularly disrupted trading, resulting in losses for investors. In this particular context, Breezen…

Shazu NFT Collectibles – How to Earn Passive Income in Ninja Style

Shazu is rewarding its rapidly-growing community with a real chance at earning passive income. The project has already announced its intentions of helping people gain financial freedom. Its deflationary SHAZU token with reflection rewards is a clear proof of it. Now, it is providing staking opportunities through its unique collection of Ninja NFT and BSC Token.. Decentralized finance (DeFi) is ushering the world into a new era of economic understanding. Thanks to digital assets, anyone can attract an above-average monthly…

HighperDao – A Project Aiming to the Launch of a Next-Gen DAO

DAOs, or decentralized autonomous organizations, are becoming more and more popular on the crypto market. Each member has an equal voice in decision-making in these systems since everyone works for a common objective. The use of DAOs in the crypto world is a popular system for building decentralized blockchain projects. HighperDao wishes to change the way modern DAOs operate through its ecosystem and HighperToken. Our review will summarize the most important details of this new initiative. About HighperDao High-potential crypto…

AABB – How Asia Broadband Creates More Business Opportunities by Linking the Gold and Crypto Markets

Asia Broadband Inc. (OTC: AABB), a resource company in the precious and base metals business, is rolling out one crypto-related service after the other in a bid to connect the gold and crypto markets. So far, the company has released a gold-backed token (AABBG), a crypto exchange, and a crypto wallet. Currently, it is ready to launch a crypto payment gateway, PayAABB, expanding its ecosystem and bridging the gap between gold and crypto. In this AABB review, we look closely…

Z7DAO – A New Crypto Experience for All Esports Fans

Blockchain-based Z7DAO aims to provide a transparent, safe, and trustworthy environment for its users.  By creating a network of token holders, the initiative hopes to establish a sense of belonging for its users. With this idea, cryptocurrency fans may work together to become owners of Esports teams.  Z7DAO wishes to be the first decentralized competitive Esports organization, and our review will look closely into this project. About Z7DAO An Esports organization governed and owned by the community can become a…