# What are blockchains and how do they work on Binance?
A blockchain is a technology that allows for the decentralized and secure storage of data. It functions as a digital ledger, where transactions are grouped into blocks and linked together chronologically. Each block has a unique code, called a hash, that connects it to the previous block, creating an immutable and transparent chain. Blockchains are primarily used in cryptocurrencies, but they can also serve other purposes, such as smart contracts and secure data storage.
How blockchains work on Binance:
Binance is one of the largest cryptocurrency exchange platforms in the world and uses blockchain technology to facilitate cryptocurrency transactions securely and efficiently. On Binance, users can trade various cryptocurrencies that operate on different blockchains.
Some common examples of blockchains used on Binance are:
1. Binance Chain: This is Binance's native blockchain, which allows for asset exchange and token issuance on the platform.
2. Ethereum (ETH): Binance also supports cryptocurrency transactions based on Ethereum, such as ERC-20 tokens.
3. Binance Smart Chain (BSC): This is a blockchain compatible with smart contracts, designed to be fast and low-cost, widely used for decentralized applications (DApps) and BEP-20 tokens.
Objectives of blockchains on Binance:
1. Decentralization: The main goal of blockchains is to eliminate intermediaries, allowing for direct transactions between users.
2. Security: Transactions are immutable, meaning that once a transaction is recorded, it cannot be altered or deleted.
3. Efficiency: Binance leverages blockchains to offer fast and low-cost transactions compared to traditional systems.
4. Global access: Blockchains allow people from all over the world to conduct transactions without restrictions.
