Being a product of Binance Exchange, the Binance Smart Chain is blockchain using smart contract technology and makes it possible for anyone to make a cryptocurrency.
This is relatively a new program, having been launched in 2020. This guide discusses crucial details about Binance Smart Chain and the tokens on it.
Understanding Binance Smart Chain
With blockchain technology is innovating rapidly, Binance Chain has put measures in place to keep up. Binance Chain (which secures the Binance Coin) is the native blockchain of Binance Exchange.
Launched in 2020, the Binance Chain runs parallel to the native blockchain. It is important to note that there is a difference between these two platforms — the Binance Smart Chain (BSC) only supports smart contracts.
Even though BSC is almost similar to Ethereum, they are different. While BSC uses delegated stake proof, Ethereum uses proof-of-work consensus. For this reason, BCS can process more transactions per food second at cheaper prices. However, this can’t be done without its tradeoffs.
Furthermore, BSC is very centralized, with only 21 validator nodes controlling its network. This is advantageous because it speeds up transactions.
Tokens on Binance Smart Chain
There are several tokens on Binance Smart Chain; some of them include;
Binance Coin (BNB)
This is the native coin on Binance Smart Chain. It is important to note that the BNB token is also present on Binance Chain. These two blockchains run parallel to each other. This means that if you want to use the BNB coin on BSC, you have to convert it into the BEP-2 standard. The BNB coin is advantageous because it gives you massive discounts on subsequent trading fees. Furthermore, you can use it on other BSC applications without modifying it.
This is another token found on the Binance Smart Chain. For every BTCB minted on BSC, there is one bitcoin held as a reserve. This means that the price of Bitcoin and BTCB are the same. As a result, you can enjoy all the volatility of Bitcoin using various BSC applications.
This is one of the decentralized exchanges on BSC. This platform gives you access to all tokens available on BSC. Besides, you can stake the PancakeSwap token on the system to earn interest. While this token is not popular among users, it has significant value. You can also use it to transfer value on the BSC. It is also usable on the native blockchain platform. However, its price is not the same as that of BTCB.
Binance USD (BUSD)
This is a stable coin found on the BSC. However, it is pegged to the value of only $1. Even though its price isn’t designed to increase, it is an important coin for several reasons. For instance, you can use this coin to swap out and in of crypto investments rather than use your bank. Furthermore, you stand a chance to earn interest on your Binance USD coins through various low-risk crypto accounts.