iMe & BSC

Binance Smart Chain (BSC) is integrated into iMe.

BNB and BUSD coins are available to all iMe users for storage, transfers and purchases with a bank card via Simplex. LIME token will be deployed to BSC in the nearest future also!

Binance Academy

Introduction

You’ve probably heard of Binance Chain, the home of the BNB currency. It’s optimized for ultra-fast trading. To achieve this, it had to make certain trade-offs – one being that Binance Chain wasn’t as flexible from a programmability standpoint as other blockchains.

Well, Binance Smart Chain is here to change that, a new blockchain with a full-fledged environment for developing high-performance decentralized applications. It was built for cross-chain compatibility with Binance Chain to ensure that users get the best of both worlds.

Binance Chain was launched by Binance in April 2019. Its primary focus is to facilitate fast, decentralized (or non-custodial) trading.

Due to limitations inherent to blockchain systems, however, the chain doesn’t have much flexibility – smart contracts in a system optimized for fast trading could significantly congest the network. Remember CryptoKitties? At the height of its popularity, it brought the Ethereum blockchain to a standstill.

Scalability remains one of the most challenging hurdles to blockchain development. And that’s where Binance Smart Chain comes in.

What is Binance Smart Chain?

Binance Smart Chain (BSC) is best described as a blockchain that runs in parallel to the Binance Chain. Unlike Binance Chain, BSC boasts smart contract functionality and compatibility with the Ethereum Virtual Machine (EVM). The design goal here was to leave the high throughput of Binance Chain intact while introducing smart contracts into its ecosystem.

In essence, both blockchains operate side-by-side. It’s worth noting that BSC isn’t a so-called layer two or off-chain scalability solution. It’s an independent blockchain that could run even if Binance Chain went offline. That said, both chains bear a strong resemblance from a design standpoint.

Because BSC is EVM-compatible, it launched with support for the rich universe of Ethereum tools and DApps.

How does Binance Smart Chain works?

Consensus

Binance Smart Chain achieves ~3 second block times with a Proof-of-Stake consensus algorithm. Specifically, it uses something called Proof of Staked Authority (or PoSA), where participants stake BNB to become validators. If they propose a valid block, they’ll receive transaction fees from the transactions included in it.

Note that, unlike many protocols, there is no block subsidy of freshly-minted BNB, as BNB is not inflationary. On the contrary, the supply of BNB decreases over time, as the Binance team regularly conducts coin burns.

Cross-chain compatibility

Binance Smart Chain was envisioned as an independent but complementary system to the existing Binance Chain. Dual-chainarchitecture is used, with the idea being that users can seamlessly transfer assets from one blockchain to another. In this way, rapid trading can be enjoyed on Binance Chain, while powerful decentralized apps can be built on BSC. With this interoperability, users are exposed to a vast ecosystem that can cater to a myriad of use cases.

BEP-2 and BEP-8 tokens from Binance Chain can be swapped for BEP-20 tokens, the new standard introduced for Binance Smart Chain.

Decentralized Finance (DeFi) on Binance Smart Chain

You may know that a number of digital assets – such as BTC, LTC, ETH, EOS, or XRP – already exist on Binance Chain as “Peggy coins.” These are tokens that are pegged to assets on their native chains. For instance, you might decide to lock up 10 BTC in order to receive 10 BTCB on Binance Chain. At any time, you can trade your 10 BTCB for 10 BTC, meaning that the price of BTCB should closely track that of native BTC. 

Because of the flexibility afforded by Binance Smart Chain, assets from a number of different chains can be used in the growing DeFispace. For instance, applications like PancakeSwap allow users to trustlessly exchange assets (much like Uniswap), engage in yield farming, and vote on proposals.

Closing thoughts

Binance Smart Chain greatly extends the functionality of the original Binance Chain and joins a range of cutting-edge protocols designed to bridge the gap between various blockchains. Though still in its infancy, the promise of BNB staking alongside EVM compatibility makes the platform an ideal engine for developers building powerful decentralized applications. 

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