Leading crypto exchange Binance is going to launch a proprietary blockchain with support for smart contracts.
Announced on Friday, the new blockchain dubbed Binance Smart Chain will run parallel to the existing Binance Chain.
The exchange pointed out that the new blockchain is sovereign, providing security and safety to its users and developers; EVM-compatible and will support all the existing Ethereum tooling; and will allow cross-chain communication and scaling of high-performance dApps.
“This innovative solution brings the interoperability and programmability of the Ethereum Virtual Machine (EVM) to Binance Chain,” Binance stated.
#Binance Chain (@binance_dex) Community Releases Whitepaper for Enabling Smart Contracts
🔸 Smart Contracts
🔸 $BNB Staking
🔸 Open Source
🔸 EVM Compatible
🔸 Fast Block Times
🔸 Low Transaction Costs
— Binance (@binance) April 17, 2020
Can it challenge the dominance of Ethereum?
The blockchain will be based on proof of staked authority (PoSA) consensus and the transactions will be confirmed by 21 validators.
With this, Binance DEX, the decentralized crypto exchange, will run on two blockchains – Binance Chain and Binance Smart Chain – maintaining higher liquidity and Binance Coin (BNB) will serve as both the gas of smart contract execution and tokens for staking.
Notably, the blockchain will be maintained by the Binance Chain Development Community (BCDC), not the exchange alone.
“This dual-chain architecture will be ideal for users to take advantage of the fast trading on one side (Binance Chain) and build their decentralized apps with smart contracts on the other side (Binance Smart Chain),” BCDC stated.
“BNB holders who are interested in staking BNB can also support the development of Binance Smart Chain and earn rewards. In the long term, we hope to continue working closely with the blockchain community to strengthen our infrastructure for digital assets and provide the community with the best platforms for digital asset creation, circulation, and exchange.”