What Is Binance Smart Chain?
Binance Smart Chain (BSC) is a blockchain network built for running smart contract-based applications. BSC runs in parallel with Binance’s native Binance Chain (BC), which allows users to get the best of both worlds: the high transaction capacity of BC and the smart contract functionality of BSC.
Furthermore, Binance Smart Chain also implements the Ethereum Virtual Machine (EVM), which allows it to run Ethereum-based applications like MetaMask.
The aim of the platform is to enable developers to build decentralized applications (DApps) and help users manage their digital assets cross-chain with low latency and large capacity.
What Is Binance Coin (BNB)?
Binance Coin (BNB) is the native token of the BC, and was launched in July 2017, initially as an ERC-20 token. Transactions on BC burns BNB tokens, according to a fee schedule roughly every three months. From the initial maximum supply of 200 million, burns will continue until supply reaches 100 million. BNB is a BEP-2 token, the native token stand of the BC.
As the native token, BNB serves as the gas fees for transactions on BC, issuance costs for new assets, minting and burning costs and more. BNB also powers the BSC, and is used for delegated staking on the authority validator. For Binance.com users, BNB can also be used to pay for trading fees on the exchange.
Here are some of the attributes of BSC:
Independent Blockchain
Ethereum-Compatible
Supports Staking and Community-Based Governance
Native Interoperability
Proof-of-Staked-Authority
BSC combines both delegated PoS and proof-of-authority (PoA) to achieve network consensus and maintain blockchain security. PoA is known for its capacity to thwart 51% attacks, as well as its tolerance for Byzantine attacks.