A Simple Introduction to Binance Smart Chain

What is Binance Smart Chain (BNB)?

  • Binance is currently one of the largest crypto exchanges
  • Original intention was to use it to run the exchange, but has now expanded with smart contracts to explain it’s application
  • There are 2 binance chain: Binance Smart Chain (new with contracts) and Binance Chain (old)
  • Binance Smart Chain is essentially a fork of Ethereum (copy and paste of Ethereum Code) but made some changes of their own
  • Uses delegated Proof of Stake => Top 21 people staking the most BNB coins gets to be validators
  • This model is more centralized but provides cheaper fees and more transactions / second
  • Similar to ETH, BTC, SOL, ADA in the sense that these are all layer 1 protocols

Use Case of BNB

  • Lower trading fees
  • Special offers if you pay with BNB (e.g. Canva)
  • Notable projects today: Pancake Swap

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hi! I'm

Ricky Young

My belief is that financial freedom can only be achieved through a combination of smart investing and passive income. This is my journey to achieve financial freedom.

Disclaimer: The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. To learn more, read our Terms of Use.