
Originally Posted by
TrustWallet
Binance Smart Chain (BSC) is a blockchain protocol from Binance that runs in parallel with Binance Chain. Unlike Binance Chain, however, Binance Smart Chain powers smart contract functionality and boasts compatibility with Ethereum Virtual Machine (EVM).
What’s more, BSC has one of the fastest blockchain transaction times and lowest fee structures, which makes building DeFi apps on the protocol so appealing for developers.
Binance Smart Chain uses a consensus algorithm known as Proof of Staked Authority (PoSA) where 21 validators stake BNB, the native token for the Binance ecosystem, to secure the network.
Unlike many other blockchains, however, Binance Smart Chain does not offer block subsidies or allows minting of fresh BNB in the form of a block reward. Instead, validators receive transaction fees as a reward for securing the network.
Binance Smart Chain’s BEP-20 token uses essentially the same format as the Ethereum protocol’s popular ERC-20 tokens.
Currently, there are already 60+ DApps operating on Binance Smart Chain, with the majority focusing on decentralized finance solutions.
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