Key Takeaways
- BNB Chain is a decentralized blockchain ecosystem focused on providing a robust infrastructure for the Web3 economy.
- BNB Chain offers a diverse range of services, promoting decentralized data management, layer-2 scaling, and innovative solutions for the world of decentralized finance (DeFi).
- This article explores BNB Chain’s transformative journey, from its origins in 2017 to the present, showcasing its ability to adapt and innovate.
A Brief History of BNB Chain
BNB Chain (formerly Binance Chain) was created in 2019. At that point, the BNB utility token (created in 2017) migrated from the Ethereum network to become the native token of the BNB Chain. That early version of the BNB Chain is what we now call the BNB Beacon Chain.
In 2020, the BNB Smart Chain (BSC) – formerly Binance Smart Chain – was created as a new blockchain to run in parallel to the BNB Beacon Chain. BSC brought new features and more flexibility through the use of EVM-compatible smart contracts, leading to an explosive growth of DApps and services.
BNB Beacon Chain vs. BNB Smart Chain
In 2022, the BNB Beacon Chain and the BNB Smart Chain (BSC) were put together under the BNB Chain ecosystem. Still, the two chains continued to operate separately, serving different purposes.
- BNB Beacon Chain: Governance layer, with staking and voting. It uses the BEP-2 token standard.
- BNB Smart Chain (BSC): EVM-compatible layer with DApps, DeFi services, consensus layers, multi-chain support, and other Web3 applications. BSC uses BEP-20 as its main token standard.
Since then, the BNB Chain ecosystem has expanded to include more products, such as BNB Greenfield and opBNB layer-2 solution – more on these later.
Binance Does Not Own or Control BNB Chain
Binance does not possess control over BNB Chain, a fact that may be confusing to some due to the chain’s emergence after Binance Chain and Binance Smart Chain. Some mistakenly perceive BNB Chain as another Binance product, but the distinction lies in BNB Chain’s decentralized nature.
Binance’s centralized structure is focused on serving the Web3 world. While Binance introduced the original idea and remains a supporter, its vision for BNB Chain was for the network to be decentralized and independent. BNB Chain operates with a community-driven approach, allowing anyone to become a network validator through BNB stakes.
The BNB Chain Fusion
In December 2023, the BNB Chain team announced its plan to discontinue the BNB Beacon Chain, transferring its functionalities to the BNB Smart Chain network.
“[…] there’s a strategic shift to migrate the Beacon Chain’s functionalities to BSC and retire the Beacon Chain. This move aims to streamline the network, improve efficiency, reduce security risks, and align BNB Chain’s architecture with the current technological demands and future growth.” – BNB Chain Blog.
The migration is expected to happen through multiple stages, starting in April 2024 and concluding in June of the same year. For more information, please refer to the BNB Chain Fusion roadmap.
By now, we hope you have a good understanding of how BNB Chain was created and where it’s headed. Next, we will explore how the BNB Chain works and some of its key products and features. Please note that the information provided is subject to change – especially after the upcoming BNB Chain Fusion.
BNB Chain Scaling Solution and Decentralized Storage
Since its inception, BNB Chain has expanded into a multi-chain framework that now includes a variety of services, such as opBNB (a layer-2 scaling solution) and BNB Greenfield (a decentralized storage chain).
opBNB
opBNB is a layer-2 scaling solution that leverages the Optimism OP Stack to enhance the BNB Smart Chain’s performance. It provides high throughput, low transaction fees, and efficient transaction processing, making it suitable for large-scale Web3 applications.
- Scalability: opBNB acts as a layer-2 scaling solution, offloading transaction processing and resource usage from the BNB Smart Chain. It provides scalability beyond layer-1 constraints, supporting over 4,000 transactions per second (TPS).
- Gas efficiency: With average gas fees as low as $0.001, opBNB enhances the user experience by delivering high throughput and cost-effective transactions.
BNB Greenfield
The BNB Greenfield ecosystem consists of BNB Greenfield (a storage-oriented blockchain) and a decentralized network of Storage Providers (SPs).
The BNB Greenfield is a blockchain network layer built with the Cosmos/Tendermint infrastructure. Utilizing the Tendermint consensus mechanism, the Greenfield Blockchain ensures network security with a Proof of Stake approach. Validators play a crucial role in achieving consensus and participating in network governance.
SPs are infrastructures provided by organizations or individuals responsible for responding to user requests to upload and download data. SPs act as gatekeepers for user rights and authentications.
Users submit their data storage requests on Greenfield and Storage Providers (SPs) are responsible for maintaining the data off-chain. To ensure the integrity of their stored data, users can perform a Proof-of-Challenge verification on BNB Greenfield.
Developers can build DApps on the BNB Greenfield platform, connecting with BNB Chain and facilitating a foundation for a new data economy in the Web3 era.
Closing Thoughts
The BNB Chain has undergone a remarkable evolution since its inception in 2017, transforming from the early BNB Chain to a huge DeFi ecosystem that now includes thousands of services, products, DApps, and decentralized organizations. The BNB Chain stands as a powerful force in the Web3 world, offering users, developers, and enterprises a robust platform for innovation and growth.
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