What is Binance Smart Chain (BSC) and the projects it does

Binance Smart Chain (BSC) is one of the leading ecosystems today, attracting huge cash flows. However, not everyone knows what Binance Smart Chain is, how it works, and which projects are popular. To answer this problem, you can refer to the following article!

Learn about the Binance Smart Chain blockchain

What is Binance Smart Chain?

Contents

What is Binance Smart Chain?

A lot of people have the same question What is Binance Smart Chain?. It can be understood that this is a modern blockchain and compared to the original Binance Chain version, this is an improved version with many more advantages. This version is built on Ethereum’s EVM mechanism. However, BSC is not a replacement but a platform that works side-by-side with the old version.

BSC What is a Binance Smart Chain

Although there are still limitations on the infrastructure system, in return BSC is well compatible with EVM. Therefore, BSC can make it possible for projects built on Ethereum to migrate Binance Smart Chain easier.

Another plus of this blockchain is that it can provide smart contracts to users and has a native token of Binance Coin (BNB). Thanks to that, on Binance BNB token has more influence.

Some basic parameters of Binance Smart Chain:

TPS: 100Blocktime: 75s Total Tx: 359 million Tx fee: $0.5

How does Binance Smart Chain work?

BSC operations are performed based on the Proof of Staked Authority (PoSA) algorithm. This algorithm builds on the combination of Poof of Authority with Proof of Stake. People who have been authenticated to Binance Smart Chain network are all people who currently own a certain amount of BNB. After they successfully validate blocks on this network, they will receive transaction fees.

BSC works based on Proof of Staked Authority algorithm

Currently, BSC has been designed to synchronize with Binance Chain. Besides, both these blockchains can also be cross-chain compatible. In addition, the advantage of BSC is that it can move assets quickly and easily between blockchains. As a result, it was possible to successfully combine the ability to trade cryptocurrencies with smart contract functionality in the improved version.

Currently, two tokens, BEP-2 and BEP-8 of Binance Chain, can be exchanged with BEP-20 tokens on Smart Chain. On the other hand, thanks to good compatibility, dApp creators on other blockchains can quickly make EVM to Binance Smart Chain. Ethereum virtual currency is growing and becoming more and more popular. This has made BCS more attractive to Dapp operators.

4 Popular Projects Deployed on Binance Smart Chain

AMM

AMM is an acronym for Automated Market Maker. This trading method currently calculates the price of the token at the time of purchase based on its own algorithm. The role of the smart contract on AMM will be as an intermediary responsible for supporting purchase and sale transactions. Specifically, the seller will put his assets into the liquidity pool, while the buyer will use a smart contract to swap their assets with the assets in the pool.

AMM Illustration about: AMM

On BSC, there are currently the following outstanding AMM projects:

Bounce:

PancakeSwap:

DODO:

Has integrated BSC and is a DEX using AMM + Oracle to solve problems related to impermanent loss

Dapp

dApp or Decentralized Application is known as a decentralized application and is created by blockchain technology with smart contracts. Since BSC is now compatible with EVM, Dapps on Ethereum only need a few minor changes to be able to swap over BSC.

Illustration about: Decentralized Application

Due to the fact that every day new projects are launched, so there is still not an exact number of dApp projects on BSC. However, it is estimated that there are currently 450 based Dapp applications, including:

DeFi (DEX – Liquidity):

NFT:

Lending:

IDO Platform:

About 15 projects

Lending

This is known as a form of allowing users to use their own money or property to lend to others and this is a form of profitable lending. Borrowers can be individuals or can also be organizations (exchanges).

Lending Illustration: Lending

Above Binance Smart Chain currently about 25 Lending projects. However, the most prominent can be mentioned:

Fortube:

Hard Protocol:

Is a Lending dApp developed by Kava Labs

Defi Ecosystem

In the Defi Ecosystem project, there are many different small products. However, there are 3 most prominent projects in Defi are:

Venus ProtocolAlpha Finance LabKava

DeFi on Binance Smart Chain

Roadmap, partners and investors

Roadmap

Roadmap – the development roadmap of Binance Smart Chain not long but also has many outstanding marks:

Roadmap Binance Smart Chain

Period 04/2020 – 09/2020

During this period four important events took place. The first is the publication of the whitepaper for the BSC. the second is to make BSC improvements. The third is the successful launch of Testnet and cooperation with Band Protocol, Ankr, ChainLink, etc. And finally the official BNB token application is launched.

Period 09/2020 – 03/2021

During this period, DeFi cash flows are still stored in the Ethereum system and in Binance Smart Chain DeFi is still left blank. However, in order to attract developers from the BSC system, many smart strategies have been implemented with a total of extremely valuable prizes, up to millions of dollars, such as the Build Reward Program. or Most Valuable Builder.

In February 2021, Ethereum charged quite high transaction fees. Besides, the DeFi Stack on the BSC ecosystem has clearly formed, so the cash flow here is huge. Specifically, the TVL growth in BSC Defi has reached $40 billion.

Period 03/2021 – 06/2021

The beginning of this phase is when DeFi develops most strongly on the BSC system. Among them, the most prominent is PancakeSwap. At this stage, PancakeSwap has become the liquidity center for the entire BSC system, and it has even been expanded to many other areas.

However, in June 2021, DeFi began to saturate. Instead, it was the strong rise of the NFT trend. At the same time, according to Binance’s announcement, at the end of June 2021 NFT Marketplace will be officially launched. And this is also one of the reasons that the cash flow has not been withdrawn from the BSC system.

Period 06/2021 – 09/2021

Until the end of July 2021, the BSC ecosystem was still very calm. However, at this time, the trend of GameFi or Play on Earn – a great combination of the NFT trend with DeFi was born and started with Axie Infinity in the Ethereum ecosystem. And very quickly, it didn’t even take a week for the BSC ecosystem to successfully capture the market with GameFi. But only after nearly 2 exciting weeks, it continues to be forgotten.

PancakeSwap thrives during this period

By the end of August 2021, the Metaverse trend appeared. At this time, the projects under GameFi were assigned a new label, Metaverse. Growth Fund also invested in BSC’s Galaxy project $1 billion to authorize credentials on web 3.0 chains. In addition, through the investment of Growth Fund, it can help projects on BSC take advantage of the resources of the ecosystem and increase interaction with users around the world.

Partner

Currently, BSC is cooperating with many partners (excluding dApps built on BSC) such as security partners, Oracle and storage wallets. For that reason, BSC’s information security is very good. At the same time, this blockchain also has many types of electronic wallets. Each Binance Smart Chain metamask will have its own characteristics, depending on the partner. Specifically:

Security partner:

Oracle Partners:

Partner Binance Smart Chain wallet:

Coin98 Wallet, Math Wallet, Trust Wallet,…

In particular, November 2021, Binance Labs invested up to $8 million in DoraHacks to build a more open source blockchain world.

Coin98 Wallet becomes one of BSC’s partners

Investors

The biggest investor of BSC today is the Binance exchange. At the same time, this is also one of the most experienced investment funds, owning the largest community in the crypto market today.

Closing and Disclaimer

Above are the shares about blockchain Binance Smart Chain – BSC. It can be seen that this is a blockchain that has many advantages with many outstanding projects and reliable partners and investors. However, these are just basic information about BSC. If you want to participate in this blockchain, you still need to learn more information to get an overview.

Disclaimer: The information we share in this article is for reference purposes only and is not a recommendation or investment advice. Investing in cryptocurrencies involves certain risks. Therefore, you need to consider, learn carefully and at the same time prepare to lose money.

Note, the above content is the knowledge and experience of the author himself in the long time participating in the Crypto market, not investment advice for readers. If you feel that the knowledge shared by the author is reasonable and accurate, you can apply it to yourself. And of course, participating in the game, there must be winners and losers, so I wish you all a successful investment!

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