What is Binance Smart Chain (BSC)? How is it related to Binance Chain (BC)?
Introduction
Binance Smart Chain (BSC) is closely related to Binance Chain and has become a strong competitor to Ethereum with its high performance and low cost advantages. This article will introduce you to what Binance Smart Chain (BSC) is, its relationship with Binance Chain, and its applications in areas such as DeFi and GameFi.
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What is Binance Smart Chain (BSC)?
Binance Smart Chain (BSC) is an independent blockchain network designed to provide a high-performance, low-cost smart contract platform. It was launched in September 2020, using a Proof of Stake (PoS) consensus mechanism, supporting Ethereum Virtual Machine (EVM) compatible smart contracts, and enabling developers to easily migrate decentralized applications (DApps) on Ethereum to BSC.
BSC is designed to solve the problems of Ethereum network congestion and high gas fees. It is able to handle higher transaction throughput while keeping transaction fees low. According to network data, BSC can process more than 4 million transactions per day with an average block time of 3 seconds.
Binance Coin (BNB) is the native token of Binance Smart Chain (BSC). BNB was originally launched on the Ethereum network as an ERC-20 token in 2017 and later migrated to Binance Smart Chain. As of 11:00 on January 27, 2025, BNB is currently priced at $681.44, ranking sixth in market capitalization.
What is the difference and connection between Binance Smart Chain and Binance Chain?
Binance Smart Chain (BSC) and Binance Chain (BC) are two independent but complementary blockchain networks with a built-in cross-chain communication mechanism between them, allowing assets and data to flow freely between the two networks. The main differences and connections between the two are as follows:
| Binance Chain (BC) | Binance Smart Chain (BSC) | |
|---|---|---|
| Functional positioning | Mainly used for high-speed asset transfer | Focus on smart contracts and DApp development |
| Consensus mechanism | Delegated Proof of Stake (DPoS) mechanism | Use Proof of Stake Authority (PoSA) mechanism |
| Smart Contract | Support smart contracts and EVM compatibility | No support for smart contracts |
| Native Token | Binance Coin (BNB) | Binance Coin (BNB) |
What DApps are on Binance Smart Chain?
Binance Smart Chain (BSC) covers decentralized applications (DApps) in multiple fields. Here are some of the major applications and ecos on Binance Smart Chain (BSC):
Decentralized Exchanges (DEX): PancakeSwap is the largest DEX on BSC, which provides multiple services such as token swaps, liquidity mining, and lotteries.
Lending Platforms: Venus Protocol is the leading lending protocol on BSC, allowing users to deposit and earn interest or lend assets.
Yield Aggregators: Projects such as AutoFarm and Beefy Finance provide users with automated yield optimization strategies to help users maximize their DeFi returns.
Oracles: ChainLink and Band Protocol provide decentralized data feed services on BSC, providing reliable external data for smart contracts.
Cross-chain Bridges: Projects such as Binance Bridge and AnySwap enable asset transfers between BSC and other blockchains.
GameFi and NFTs: Game projects such as CryptoBlades and Mobox have attracted a large number of users on BSC. BSC also supports the minting and trading of NFTs, such as BakerySwap’s NFT market.
Gate.io provides convenient trading and asset management services for Binance Smart Chain (BSC) users. You can use the Web3 wallet to connect to Binance Smart Chain (BSC): https://www.gate.io/web3 . At the same time, Gate.io supports the trading of various BSC-related tokens and the deposit and withdrawal services of the Binance Smart Chain (BSC) network, providing an important entry point for users to participate in the BSC eco.
Conclusion
Binance Smart Chain is rapidly becoming an important force in the blockchain eco with its high performance, low cost and Ethereum compatibility. It solves the scalability problems faced by Ethereum and provides more options for developers and users. As blockchain technology continues to evolve, BSC, like other blockchain networks, is expected to play a key role in shaping the decentralized future and open up new avenues for innovation and economic growth.
Risk warning: Blockchain technology is developing rapidly, BSC may face competition from emerging platforms, and changes in regulatory policies may also affect its development trajectory.
