âWhy Binance Smart Chain
Binance Smart Chain (BSC) is a Binance-developed blockchain system that works concurrently with Binance Chain. In comparison to Binance Chain, Binance Smart Chain enables smart contract capability and is compatible with the Ethereum Virtual Machine (EVM).
Additionally, BSC has one of the fastest blockchain transaction times and the lowest fee structures, which attracts developers to build DeFi apps using the protocol. Binance Smart Chain is secured by a consensus process called Proof of Staked Authority (PoSA), in which 21 validators stake BNB, the Binance ecosystem's native token. In contrast to many other blockchains, Binance Smart Chain does not offer block subsidies or allow for the minting of new BNB as a block reward. Rather than that, validators are compensated with transaction fees for safeguarding the network.
The BEP-20 token on Binance Smart Chain is virtually identical to the Ethereum protocol's popular ERC-20 tokens. There are currently over 60 DApps running on Binance Smart Chain, the majority of them focusing on decentralized finance solutions.
Overall, BSC's technical advantages are more obvious, reflected in the following aspects:
Smart Contract
EVM-compatible
Cross-chain functionality
Interoperability
Cheap Transactions
Transaction Speed
Smart Contract
BSC possesses the ability to create smart contracts. DApps with varying functions form the foundation of DeFi's ecology, while smart contracts define the underlying rules and working logic of DApps. Simultaneously, the programmable capability significantly expands the BSC and enables the diversity of DApp functions. As a result, the smart contract serves as the foundation for the Binance DeFi ecological "building."
EVM-compatible
BSC is compatible with the existing Ethereum Virtual Machine EVM (Ethereum Virtual Machine) and all apps and tools inside its ecosystem, significantly lowering the barrier to entry for developers developing DApps. Developers can quickly migrate and deploy Ethereum DApps, reducing development effort. The term "EVM compatibility" refers to the extent to which an EVM is compatible with the current most popular Ethereum environment, hence luring developers and overflow capital to Ethereum.
Cross-chain functionality
The purpose of cross-chain is to enrich the DeFi ecology's currency and to increase mobility. Mint's "Pass Canal" has thus far enabled the cross-chain exchange of ERC20 assets on BTC, Ethereum (ETH, LINK, USDT, DAI, etc. ), XRP, BCH, LTC, ADA, DOT, XTZ, BSC, ONT, and others. This also means that these assets can be transferred to the Binance Smart Chain, where they will serve as the liquidity for the DEFI operation.
As a result of the foregoing, we chose BSC as the base chain for $SPAL distribution, which leaves greater room for the underlying structure of $SPAL and cross-chain ecosystem compatibility.
Interoperability
Binance Smart Chain is built on a twin chain architecture, which enables users to transfer assets between blockchains with ease. The interoperability of the Binance Smart Chain enables customers to tap into a broad ecosystem with an infinite number of use cases. Interoperability is a critical element that DeFi proponents value highly, and Binance Smart Chain is at the forefront of making this feasible.
Cheap Transactions
Transaction fees, alternatively referred to as blockchain fees, are the charges that users incur when they make a transaction on a blockchain. This fee is paid by miners or validators who guarantee that only valid transactions are recorded and processed on the blockchain.
The majority of DeFi apps entail a large number of transactions, each of which incurs a cost. As such, blockchain fees are a critical issue to consider when selecting a blockchain protocol.
Ethereum recently recorded transaction costs of over $100, while Binance Smart Chain charges between $0.01 and $0.05 for the same services.
Transaction Speed
Before a blockchain transaction can be performed completely, it must have a certain amount of confirmations. The purpose of confirmations is to eliminate the possibility of double expenditure. The longer the confirmation time, the longer it takes to complete a transaction.
Scalability issues have harmed Ethereum, resulting in congestion and lengthier wait times for transactions to execute. Binance Smart Chain was constructed using a similar structure to the existing Binance Chain, which is a high-performance, low-latency blockchain, but was unable to handle smart contracts due to a design choice to increase speed.
Binance Smart Chain, which supports smart contracts for decentralized apps, is coupled to the high-throughput Binance Chain in order to achieve faster confirmation times and transaction processing speeds while remaining customizable.
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