Binance Smart Chain (BSC) is a blockchain platform developed by the cryptocurrency exchange Binance. It was launched in September 2020 as a parallel blockchain to the existing Binance Chain. BSC is designed to provide a decentralized platform for creating and executing smart contracts, similar to Ethereum.
Binance Smart Chain utilizes a dual-chain architecture, which means it operates with the Binance Chain. While Binance Chain focuses on providing fast and secure trading of cryptocurrencies, BSC enhances the ecosystem by enabling the creation of decentralized applications (dApps) and the execution of smart contracts.
One of the primary goals of Binance Smart Chain is to offer high performance and low transaction fees, making it an attractive option for developers and users. It achieves this by utilizing a consensus mechanism called Proof of Staked Authority (PoSA), where a set of validators is elected to validate transactions and produce new blocks.
BSC supports the Ethereum Virtual Machine (EVM), which is compatible with most Ethereum tools, dApps, and smart contracts. This compatibility allows developers to easily port their projects from Ethereum to BSC, leveraging its lower fees and faster transaction confirmation times.
The native cryptocurrency of Binance Smart Chain is called Binance Coin (BNB), which is used for various purposes within the ecosystem, including paying transaction fees, participating in token sales, and staking for yield farming.
Overall, Binance Smart Chain aims to provide a scalable and efficient blockchain platform that supports decentralized finance (DeFi) applications, decentralized exchanges (DEXs), and other innovative projects in the blockchain space.