Binance Introduces Smart Contract Powered Blockchain for BNB Tokens

Crypto exchange Binance is live on mainnet to revolutionize the DeFi sector, introduces Smart Contract Powered Blockchain for BNB tokens.

By · Sep 2, 2020 . 6min read

Binance BSc news

On Tuesday, cryptocurrency exchange Binance announced the launch of the mainnet of its smart contract-enabled blockchain and is introducing staking for its native Binance (BNB) token. The new blockchain will use a “Proof-of-Stake” Authority (PoSA) consensus mechanism. Binance insists it will provide the validators to receive rewards for their work on the chain without waiving transaction speed.

Five months since it unveiled in April 2020, the Binance Chain community has activated the Binance Smart Chain (BSC). The development involves running parallel to Binance Chain. BSC enables smart contracts for tokens on the Binance-branded blockchain. It also injects an all-new staking mechanism for BNB, one of the world’s top cryptocurrencies. 

Binance Smart Chain to Revolutionize DeFi Sector

The Binance Chain community launched BSC in time for the DeFi (decentralized finance) transformation, as the public shows raised interest in alternative financial solutions powered by blockchain. With BSC’s launch, DeFi projects and the more significant blockchain community can leverage the best that Binance Chain offers, enhanced by smart contract support, cross-chain interoperability, and more benefits that BSC brings. 

Binance Smart Chain comes with an Ethereum Virtual Machine-compatible environment. It enables Solidity developers to move into the new chain with almost no friction. The new blockchain will be interoperable with Binance Chain, which will remain live for the foreseeable future. The Binance DEX will likewise stay in its old home.

Binance ensures that the blockchain will have cheap transaction fees as low as 1 cent and a 3-second block. The more BNB is held, the more voting power each participant has. It would generally prefer Binance. The launch of Smart Chain aims at the opposite approach. Instead of leading BNB into DeFi, the company attempts to bring DeFi to BNB. 

Earlier, the world’s largest cryptocurrency exchange, Binance, joined hands with privacy-centric blockchain-powered cloud computing developers, Oasis Labs, to combat fraud in the crypto space. Additionally, Oasis Labs will operate with Binance and other members of the CryptoSafe Alliance to build a decentralized CryptoSafe Platform. It will enable members to share and access threat intelligence data across exchanges. 

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