Binance Smart Chain (BSC) is a blockchain network that was launched in 2020 by Binance, one of the largest cryptocurrency exchanges in the world. It was created as a parallel chain to the Binance Chain, with the goal of providing a faster and cheaper alternative for users to conduct transactions and run decentralized applications (dApps).
BSC is built on a modified version of the Ethereum Virtual Machine (EVM), which means that it is compatible with Ethereum-based dApps and smart contracts. However, BSC offers faster transaction processing times and lower transaction fees compared to the Ethereum network, due to its use of a unique consensus mechanism called Proof of Staked Authority (PoSA).
PoSA involves a group of validators who are selected based on the amount of Binance Coin (BNB) they hold and stake on the network. These validators are responsible for verifying transactions and maintaining the security and integrity of the network. In addition, Binance has implemented various measures to prevent centralization and promote decentralization on the network, such as limiting the number of validator slots available and implementing a rotation system for validator slots.
The native cryptocurrency of the Binance Smart Chain is Binance Coin (BNB), which is used for transaction fees, staking, and participating in the network’s governance system. In addition, Binance has developed a number of other tools and services to support the BSC ecosystem, such as the Binance DEX decentralized exchange and the Binance Launchpad platform for launching new blockchain projects.
Overall, the Binance Smart Chain represents a major development in the field of decentralized finance, offering users a fast, affordable, and developer-friendly platform for conducting transactions and building decentralized applications.