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What is Binance Smart Chain | BSC Explained

What-is-Binance-Smart-Chain-BSC-Explained Crypto Projects

This Binance Smart Chain review article discusses most of the things about the BSC network and its features. However, this article should not be taken as financial advice. Instead, we urge the traders and investors to do their own research before getting involved in cryptocurrencies.

The Binance network is one of the famous names in the crypto world when it comes to crypto exchanges, digital assets, and blockchain systems. In fact, the Binance exchange keeps its position as one of the top crypto exchanges in CoinGecko. What’s more, the BNB crypto market cap amounts to over $75 billion. Hence, the BNB crypto ranks among the top 5 crypto in the market.

In terms of blockchain systems, the network’s Binance Smart Chain (BSC) is one of the most talked about topics in the crypto world. This system created by Binance in April 2019 seeks to facilitate a fast, and non-custodial trading. Furthermore, the developers of BSC designed its system to be compatible with the Ethereum Virtual Machine (EVM). As a result, start-up developers can easily patch their Ethereum projects to work with BSC.

On the other hand, the team of Binance Smart Chain launched its mainnet on September 21, 2020. This mainnet created by Binance easily became so popular in the crypto world due to its blockchain compatibility and solutions. Furthermore, the BSC mainnet continues to embrace more startups projects in the crypto space. Some of the projects in BSC mainnet include Cryptozoon, My DeFi Pet, and Cryptoblades to name a few.

This month of September 2021, the BSC celebrated its one year anniversary. The event was celebrated with the participation of different projects across the crypto ecosystem. In detail, the biggest names in the crypto space such as Chainlink, Animoca brands, and Certik have attended the event and shared some insights about DeFi blockchain.

What is Binance Smart Chain?

Binance Smart Chain is a smart contract blockchain designed to be compatible with the Ethereum Virtual Machine (EVM). It is also created to run in parallel with the Binance Chain. As a result, Binance Smart Chain retains the fast execution times and low transaction costs of the network. In addition, the BSC also enables smart contracts functionality to support alcompatible dApps in the network.

Going back, since BSC is EVM-compatible, developers can easily port their projects to the BSC network from Ethereum. For example, a platform like MetaMask, a crypto wallet created to interact with Ethereum blockchain can easily be configured to work with BSC. Yes, you read it right, the MetaMask wallet can easily operate with BSC, it’s just a matter of fixing some settings.

Best of all, the BSC runs separately from the Binance Chain’s mainnet. For this reason, the connection between BSC and EVM are exclusive and will not affect each other in case of any network disruption. Of course, all this is made possible with the help of the tech team. In short, the team designed each network to have a separate blockchain running its own network with its own system and protocol.

All these things that the BSC achieved brings joy to the crypto community and tech teams behind each crypto project. In other words, the tech team behind every Ethereum project can easily migrate to BSC in case of any network congestion. Hence, users can stay away from the high fees caused by the congested ecosystem of the ETH network.

Now that we already have some background about What is Binance Smart Chain, let us know the pros and cons of BSC.

Pros and Cons of Binance Smart Chain

Pros

Lower Gas Fees – If there is one thing that BSC is famous for, it is the low transaction cost or Gas Fee. The average gas fee of BSC amounts to less than 10 gwei, where each gwei is equal to 0.0000000001 BNB. Best of all, at the time of writing, the network is still far from its congestion capacity which means that BSC gas fees can still remain at this range.

High and Fast Transaction Speeds – the transaction speed of BSC has a block time of 3 seconds. Today, this kind of processing time is one of the fastest speeds in the crypto world. Also, this kind of speed that BSC possesses in confirming transactions enables BSC to outrank other networks in confirming transactions.

Established Reputation –  Binance is one of the famous crypto assets in the crypto world. In addition, the Binance exchange today is one of the largest and most trusted crypto exchanges in the crypto space. Through this, Binance was able to earn the trust of people when it comes to their tech systems and upgrades like BSC.

Support Different languages – the Binance Smart Chain websites contain different languages. As a result, all interested users of BSC can fully choose their native languages to fully experience and understand the BSC network. Also, this facilitates adoption in audiences that are not fluent in English.

Compatibility and Interoperability – The Binance Smart Chain system is fully designed to be compatible with EVM. Through this, tech teams from ETH projects can easily migrate from ETH to BSC. Best of all, BSC also has a good connection with the Binance Chain. Hence, users can work both in these blockchain seamlessly without issues.

Cons

Centralization – one of the things that the users of BSC must know is that BSC is a centralized platform. In detail, there are only 21 validators in the network. Also, centralized systems are more exposed to cyber attacks, government compliance, and system failures. Regardless, BSC continues to provide its users with low block time and low transaction costs.

How to Acquire Binance Smart Chain Crypto

In this part of the article, we will now discuss how to acquire BSC crypto. One of the first step in having a Binance Smart Chain is the user should have a BNB crypto. Then we just need to tweak some buttons to convert BNB to Binance Smart Chain. To know the procedure, let us check the details below.

  • Create an account in the Binance Exchange
  • Fund your Binance account and Buy BNB crypto
  • Then, go to your Binance account wallet and click withdraw
Binance-Smart-Chain-BNB
  • In the withdraw page, choose BNB crypto
Binance-Smart-Chain-BNB-Coin
  • After clicking the BNB crypto, you will arrive at the WITHDRAW BNB page. In this page, you will see the address box, network option and the amount box where you can put the number of BNB  you want to withdraw.
Binance-Smart-Chain-BEP2-Coin
  • Let us say that you have already put the correct address of the wallet where you want to transfer your BNB-BSC. The next thing you need to do is choose a network to convert your BNB crypto to BSC. Note, always make sure that the address you will put in the address box is a Binance Smart Chain (BSC) address.
  • To do this, click the “network” option then choose Binance Smart Chain (BEP20) as shown above. Afterwards, put the amount of BNB-BSC you want to withdraw and click confirm. Through this, the BNB that will be transferred to your wallet from the Binance exchange will instantly be BNB-BSC.

FAQ

What is Binance Smart Chain?

Binance Smart Chain is a technology that is developed by the Binance network. In particular, this system that Binance created provides a fast way to approve transactions with low gas fees.

Is Binance Smart Chain a scam?

The Binance Smart Chain is one of the projects of the famous Binance crypto network. Having said that, we can be sure that BSC is a real project with a system backed by Binance. However, it is still best that you do your research about crypto projects.

How to get Binance Smart Chain?

The BSC crypto can be acquired by converting the BNB token to BSC token. To know how, scroll up to the subtitle, How to acquire Binance Smart Chain crypto.

What wallet supports Binance Smart Chain?

The most common wallets that support BSC are the Trust and MetaMask wallets. However, there are still more crypto wallets out in the market that support BSC. It is wise that users do their own research to know more about crypto wallets.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

A dedicated market analyst focused on the highs and lows of the cryptocurrency market. With a background in Business Administration, he tries to unfold his financial perspective to global readers.