Binance Releases Whitepaper For Its Smart Binance Chain
By Lorenzo - 2020-04-20
Binance has recently announced that hundreds of developers have already joined the Binance Chain Development Community (BCDC) after their announcement a year ago on April 18, 2019. The BCDC community has proposed a parallel blockchain called Binance Smart Chain which is supposed to have the same performance as the traditional Binance chain but with support for Smart Contracts. The official whitepaper states that “the execution of a Smart Contract may slow down the exchange function and add non-deterministic factors to trading.” In order to solve this issue, the developers are creating an independent smart contract blockchain compatible with Ethereum.‘Both Binance Chain and Binance Smart Chain will allow transfers and other communication thanks to the native support of interoperability. The Binance DEX will remain a liquid exchange venue of assets on both chains. This dual-chain architecture will empower its users to build their decentralized apps and digital assets on one blockchain and take advantage of the fast trading to exchange on the other.’
Benefits of The New ChainThere are plenty of benefits to the new Binance Smart Chain. For instance, it will be able to provide developers with a lot of security and will be EVM-compatible. Additionally, the chain is capable of supporting all existing Ethereum tools but with faster and cheaper transactions. The new chain will use a PoSA (Proof of Stake Authority) consensus algorithm which works with 21 validators. Staking is of course possible thanks to BNB. Additionally, the PoSA has a stake slashing mechanism that should protect against illegal activities. Unfortunately, Binance will always have the biggest stake in the network considering how BNB fees work.