What is Binance Smart Chain (BNB Chain)

BNB Chain (also called Binance Smart Chain or BNB Smart Chain) is a blockchain platform that aims to bridge the gap between the traditional structure of digital asset trading and the emerging global blockchain economy.

As it's created by Binance (the world's largest crypto exchange) you can imagine. that there's a lot of focus on finance with BNB Chain

By introducing interoperability, collaborative trust, proof-of-stake consensus mechanism, automated smart contracts and decentralized governance, BNB Chain is leveraging future-proof technology.

For users, BNB Chain offers an Open Platform that they can use to imaginatively craft their own technology-based projects and create vast new opportunities for themselves or their businesses.

The platform is compatible with both public and private chains including Ethereum, EOS and more.

The creation of multi-chain programmable money lets creators access multiple blockchains simultaneously while giving developers unparalleled functionality with each one they use.

Thanks to zero gas fees and high throughputs, users can enjoy a secure and seamless experience when creating decentralized applications on BNB Chain's grid.

Best BNB Chain dApps

The best dApp is really whichever one meets and exceeds your needs. 

To find that, I recommend going through the above list to find the best fits and use the user reviews to find which one can best help you. 

However, to maybe save you some timer I've pulled some of the more popular dApps on BNB Smart chain into the below list for you. 

1.  TokenPocket

Great multi-chain wallet

TokenPocket is a cryptocurrency wallet with integrated functionality for both mobile and desktop users.

It supports multiple blockchains including Ethereum, EOS, TRON, Binance Chain, and IOST.

The wallet also has its own built in dApp browser which users can use to access decentralized applications directly from the platform. Its user interface offers a convenient way to manage a variety of different cryptocurrencies with ease.

The wallet is designed to provide maximum security and privacy for its users by providing advanced encryption technologies.

Private keys never leave the device so they remain secure at all times while funds are in transit over the network. 

TokenPocket also has an automatic backup feature which allows users to store recovery codes safely in case they need to restore their wallet in the future.

You're also able to take advantage of services such as staking and exchange features which allow users to quickly and easily swap coins or tokens into other currencies. 

2. P12

A development platform for metaverse games

P12 is a pretty unique Web3 gaming platform and game creation ecosystem.

By incorporating a developer-friendly game editor, it creates more balanced economies for both players and developers alike.

To introduce the world to this new way of gaming, BNB Chain partnered with P12 and Quest 3 to launch “P12 Arcana” at Dota's headline gaming event The International 2022 in October.

Already there have been over 24,000 participants that have joined the P12 Arcana as of now with more expected to join until the end of November. 

3. Pyth Network

Real-time feeds of financial info

The Pyth Network provides real-time data feeds of financial information on-chain in an immutable and decentralized way.

Developed by financial industry leaders, the technology allows users to access reliable, secure live market data for use within the crypto ecosystem in sub-second timeframes.

Recently, Binance Chain announced a strategic partnership with Pyth Network leveraged to deliver premium real-world data on their mainnet and sidechain.

With over 70 prominent financial market participants providing various asset classes as data publishers, investors can now trust in accurate, up-to-date prices and movements that allow them to make informed decisions within the everchanging crypto marketplace. 

4. xDAO

Multichain DAO Ecosystem

XDAO is a tool for creating decentralized autonomous organizations (DAOs) and managing crypto assets.

The XDAO platform makes it possible to build complex governance structures across multiple blockchains, enabling everyone in the network to be part of the decision-making process.

It also features multichain technology that makes it easier to use and more secure against any external attacks.

BNB and BSC

There's a lot of confusion over the various names of the Binance Smart Chain. 

Over the last few years there have been multiple naming conventions Binance has used for their various chains. We've had the Binance Chain, Binance Smart Chain, BNB Chain, BNB Smart chain.  

The name has changed, mainly, to better explain what each offer does and to distance the chain itself from Binance so it's been as its own entity. Here's the latest info on what you need to know.  

Here's the quick and dirty explanation. 

What is BNB

BNB is an acronym for Binance Coin, a digital asset released by the cryptocurrency exchange Binance.

It is used to pay for trading fees and other services on the exchange. In addition, it can also be used as a medium of exchange on the Binance Decentralized Exchange (DEX) and acts as collateral when using certain features.

BNB is one of the top ten largest cryptoassets in terms of market capitalization.

BNB Chain history

The history of BNB Chain begins in April 2019 when Binance launched Binance Chain.

This launch also saw the initial shift of the BNB utility token from the Ethereum network, where it started in 2017, to this new chain.

Further development came in September 2020, with the unveiling of Binance Smart Chain, introducing functions for smart contracts and DApp building.

These separate aspects were unified in February 2022 as part of the launch of BNB Chain, which includes both BNB Beacon Chain (formerly known as Binance Chain) and BNB Smart Chain (previously referred to as Binance Smart Chain).

Specifically, the former focuses on staking and voting while the latter provides infrastructure for widespread decentralized applications. Notably, this nascent ecosystem is open-source and community-driven, allowing a high degree of decentralization.

OK, so... got it? 

In short, BNB Beacon chain is used for governance.

BNB Smart Chain, hosts the ecosystem and the dApps that use BEP-20 tokens.   

The two chains are independent of one another and Binance has no control or authority over the BNB Smart Chain. It is its own thing.  

How does BNB Chain work? 

The BNB Smart Chain uses a Proof-of-Stake consensus algorithm to achieve incredibly fast ~3 second block times.

This is done through utilizing something called Proof of Staked Authority (or PoSA), where participants stake their BNB tokens in order to become validators.

When they propose and create valid blocks, they will receive transaction fees from the included transactions.

One significant point is that new BNB tokens are not issued in this process, as the coin itself is deflationary.

Instead, the supply of BNB decreases over time since the Binance team regularly carries out coin burns.

This system allows for faster processing of transactions than competing protocols and creates an incentive for users to join the network and take part in creating blocks by staking their coins.

With these financial incentives and ever-decreasing supply, more people are tempted to become involved with keeping the network secure and driving its growth, further improving its speed and reliability.

BNB Cross-chain capabilities

BNB Smart Chain supports cross-chain capabilities. It's comprised of a dual-chain architecture that allows users to easily exchange tokens from one blockchain to another.

This provides the user with greater flexibility and access, while simultaneously offering increased security and scalability.

Making use of the interoperability built within BNB Smart Chain, users can exchange any BEP-2 or BEP 8 tokens present in BNB Beacon Chain for newer standardised tokens known as BEP 20.

These new tokens offer improved speed when making transactions and more secure features overall due to the introduction of higher data standards.

By making use of ERC-20 Token specifications alongside other innovative technologies, developers can easily create their own projects and powerful decentralised applications.

The efficiency offered by cross-chain compatibility is therefore nothing short of remarkable and its simplicity unlocks great potentials for those that are looking to tap into an ever-growing crypto ecosystem.

Why build on BNB Chain? 

The BNB Smart Chain (BSC) is a powerful and scalable layer 1 that allows developers to quickly deploy their applications onto the blockchain.

BSC supports the most popular programming languages and comes with comprehensive canonical documentation, making it much easier for developers to get started quickly.

With its EVM-compatible tooling, developers can create projects up to 35 times more efficiently than similar platforms.

The impressive framework of BSC also boasts capabilities such as handling a large number of active users each day with economical fees and providing some of the highest peak EVM transactions across the industry.

These features are complemented by first-rate security and reliability standards to ensure that your projects will always remain safe.

BNB Chain pros

1. Easy to use: BNB Smart Chain is compatible with existing Ethereum-based protocols and technologies and is simple for developers who are familiar with Ethereum to work on.
2. Gas cost-efficiency: Gas fees on the BNB Smart Chain are very inexpensive as compared to fees on the Etheruem network, allowing more efficient transactions costs, resulting in cost savings for users.
3. Security features: The BNB Smart Chain employs a host of security features such as two way validations, multi-factor Authentication, auto reverts of suspicious or high-risk transactions, and real time monitoring of similar activity across the system which helps maintain high levels of security for users. 

BNB Chain cons

1. Limited Platforms: BNB Smart Chain is only supported by a handful of nodes and platforms, so there is less room for experimentation.
2. Inflexible Protocols: It’s difficult to modify existing protocols or create new ones since the existing ones are not highly customizable or extensible, and the number of available protocols is limited.
3. Low Scalability: Since the BNB Smart Chain network consists of only a small number of nodes, it can suffer from low throughput, leading to slow transaction times and high latency issues when compared to faster blockchains.
4. Security Concerns: Security concerns have arisen due to its relatively centralized architecture where there is a small number of validators that are responsible for most decisions within the network.

BNB Chain features

1. Low cost and fast transactions: BNB Smart Chain enables users to perform efficient and reliable transactions with low fees.
2. Cost-effective scalability: The platform allows for high scalability thanks to its sharding infrastructure, making sure it is able to satisfy continuous user growth, even when operating in a scalable way.
3. High security: BNB Smart Chain boasts a secure network that supports industry standard cryptographic algorithms including SHA256 and ECDSA on the active nodes that are secured through BFT consensus technology.
4. Multi-signature feature: Multi-signature authentication will offer users the possibility of creating secure digital wallets via native support in the client software that includes an offline version as well as an online version which facilitates seamless setup of digital wallets regardless of their device’s operating system or hardware configuration.
5. Smart Contracts functionality: BNB Smart Chain provides users the ability to execute smart contracts, allowing developers to create advanced applications without worrying about needing additional infrastructure. It also integrates gas fees into its protocol layer, eliminating any dealing with ETH’s gas fees from day one.
6. Interoperability: The platform ensures interoperability among compatible blockchain networks such as Ethereum, NEO, EOS and other public chains as well as data layer technologies such as IPFS/Swarm protocols.