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


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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.

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