Binance’s parallel blockchain Binance Smart Chain (BSC) has finally been launched. It is compatible with the Ethereum mainnet, enabling the creation of smart contracts. Moreover, its staking-based governance is powered by Binance Coin (BNB).
Five months into development, the team decided to develop BSC in response to Binance Chain’s most requested feature of ‘programmable extendibility’, which simply means implementing smart contracts and virtual machine functions.
Utilizing a “Proof-of-Staked” Authority (PoSA) consensus mechanism — a combination of DpoS and PoA — Binance claims that validators will be unbiased and motivated to keep the network up-and-running without fail as they receive rewards in the form of BNB, without sacrificing any transaction speed.
This independent Ethereum-compatible smart contract blockchain will have a dedicated staking module on the Binance Chain itself. Staking from BNB holders will be accepted and calculated based on the highest staked node set. In line with this, to ensure security and finality, the Slashing logic is enforced to punish Byzantine validators for double signing or instability.
The Binance Chain community launched BSC in time for the DeFi (decentralized finance) revolution, as the public shows increased interest in alternative financial solutions powered by blockchain.
With BSC’s launch, Binance is ready to welcome DApp developers and projects. As it boosts DeFi adoption in India, this may open up better opportunities as users can leverage cross-chain interoperability and smart contract support, among others.
As per Coingecko’s data, BNB has recorded a 19.9% growth for the past 30 days. As more users decide to stake within the newly-released BSC, the asset’s price is anticipated to skyrocket in the upcoming weeks.
In preparation for the BSC launching, Binance Chain has undergone its Darwin upgrade, allowing BNB holders to stake and delegate BNB for electing validators for the new blockchain.