Binance is the world’s largest cryptocurrency exchange by trading volume. According to CoinMarketCap, as of August 2022, it had a $76 billion daily trading volume and 90 million customers worldwide.
BNB Smart Chain (BSC), previously Binance Smart Chain, is a Layer 1 blockchain network developed by Binance. It is designed to support smart contracts and decentralised applications (DApps) and offer an alternative to other blockchains such as Ethereum. BSC operates alongside Binance Chain, which is a separate blockchain developed by Binance for fast and efficient transactions.
Building on BSC offers many benefits for developers and projects. Here we take a look at some of the main ones.
Low Transaction Fees
BNB Smart Chain is known for its low transaction fees compared to other blockchain networks like Ethereum. This makes it more cost-effective for users to interact with DApps and smart contracts.
Fast Confirmation Times
BSC has a shorter block time and faster confirmation times compared to Ethereum. This means transactions and smart contract executions on BSC are generally quicker, providing a more seamless user experience.
BSC is compatible with the Ethereum Virtual Machine (EVM), which means developers can easily port their Ethereum-based projects to BSC without major modifications. This interoperability makes it convenient for projects to expand their user base across different blockchains.
Decentralised Finance (DeFi) Opportunities
BSC has a growing ecosystem of DeFi projects, including decentralised exchanges, lending platforms and yield farming protocols. Developers can tap into this DeFi ecosystem to build innovative financial applications.
Binance Ecosystem Integration
Projects on BSC can benefit from integration with the broader Binance ecosystem. This includes potential exposure to Binance users, collaboration opportunities and access to various tools and resources provided by Binance.
BNB Smart Chain has gained a significant user base and developer community. This community support can be valuable for projects, providing them with visibility, feedback and potential user adoption.
Dual Chain Strategies
Some projects adopt a dual-chain strategy, deploying on both BSC and Ethereum. This allows them to cater to users on different blockchains, providing flexibility and enabling a broader audience reach.
Token Standard Compatibility
BSC supports the same token standards as Ethereum, such as ERC-20 and ERC-721. This compatibility simplifies the process of token issuance and facilitates interoperability between the two blockchains.
Potential Centralised Finance (CeFi) Integration
Given Binance’s roots as a centralised exchange, projects on BSC may find it easier to integrate with centralised financial services and platforms, potentially providing additional liquidity options.
There are plenty of reasons that projects choose to build on BSC. For very fast and cheap bridging to Binance Smart Chain go to: https://bridge.umbria.network/bridge/ethereum-bsc/eth