Binance Enters the DeFi Space With Mainnet Launch of Binance Smart Chain

Around 13:00 UTC on Tuesday (September 1), Binance announced that the successful mainnet launch of Binance Smart Chain, which is a high performance EVM-compatible blockchain that runs in parallel to the Binance Chain (launched in April 2019); this enables smart contracts and Binance Coin (BNB) staking.

Binance introduced Binance Smart Chain on April 17. The community of developers who are building on Binance Chain is called the Binance Chain Development Community (BCDC).

The idea of this “dual-chain architecture” is that users/developers will build their decentralized apps (DApps) and digital assets on Binance Smart Chain, while being able to use Binance DEX, which is powered by Binance Chain, for trading of assets on both chains.

According to Binance, these are main advantages of Binance Smart Chain:

  • by being EVM-compatible, it will support “all of the existing Ethereum tooling along with faster and cheaper transactions”;
  • its interoperability with Binance Chain means that it will support “cross-chain communication and scaling of high-performance dApps that require fast and smooth user experience”; and
  • its on-chain governance (Proof of Staked Authority) is based on 21 validators, which means that it is sufficiently decentralized.

In a press release shared with CryptoGlobe, Binance said that Binance Smart Chain “gives developers the ability to build decentralized applications (dApps) within the Binance Chain ecosystem, unlocking more opportunities to build decentralized finance (DeFi) products and solutions.”

It also talked more about BNB staking:

“Another key feature of the Binance Smart Chain is the introduction of staking for BNB, a top-10 digital asset in the world by market capitalization.

“With the introduction of the Proof of Staked Authority (PoSA) consensus mechanism, Binance Smart Chain validators will receive BNB rewards for executing tasks on the blockchain, ensuring stability and incentive without sacrificing transaction speed.”

Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) had this to say:

“Binance Smart Chain makes it possible for developers around the world to build DeFi services and many more dApps within the Binance Chain ecosystem, while delivering various benefits such as an all-new method for staking BNB, high performance, lower fees, direct connection with fast DEX and more.

“We are looking forward to what more will materialize in the near future with the great initiative developed by the Binance Chain community with the launch of Binance Smart Chain.”

Binance also mentioned that Binance Smart Chain “features a powerhouse of blockchain collaborators that support various integrations, including Chainlink, Band Protocol, Swipe, Ontology, Trust Wallet, and at least 25 more projects.”

(Photo: Tokeneo)

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