Binance Smart Chain (BSC) is a blockchain network developed by Binance to support decentralized applications (dApps) and smart contracts. It was launched in September 2020 as a parallel chain to Binance Chain (BC) to provide faster and cheaper transactions compared to Ethereum.
Key Features of Binance Smart Chain (BSC):
1. Dual-Chain Architecture – BSC runs parallel to Binance Chain, allowing users to transfer assets between the two chains.
2. Fast & Low-Cost Transactions – BSC has a block time of ~3 seconds and much lower transaction fees compared to Ethereum.
3. Smart Contract Support – Uses Ethereum Virtual Machine (EVM), making it compatible with Ethereum-based dApps.
4. Proof-of-Staked-Authority (PoSA) Consensus – Uses a combination of Proof of Stake (PoS) and Delegated Proof of Authority (DPoA) for security and efficiency.
5. Wide dApp Ecosystem – Supports DeFi projects like PancakeSwap, Venus, and BakerySwap, as well as NFTs and gaming apps.
BSC vs. Ethereum
Faster transactions (3s vs. ~12s per block).
Lower fees (a few cents vs. a few dollars).
More centralized (BSC has only 21 validators, unlike Ethereum’s thousands).
Since its launch, BSC has become a major competitor to Ethereum, especially in DeFi (Decentralized Finance) and NFTs. However, it has been criticized for its centralization and security issues (e.g., multiple hacks on BSC-based projects).