Binance’s DeFi Breakthrough — The Binance Smart Chain
2020 is coming to an end. Although it has experienced a handful of market corrections, DeFi (decentralized finance) is still the hot spot that has received the most attention. From the dormancy, growth, and expansion on ETH, to the competition of various public chains, the flow of DeFi projects and their ability to attract cash flow cannot be underestimated. Under this environment, Binance will certainly join, and Binance Smart Chain (BSC) is the basis for the development of Binance in the direction of the DeFi business.
What is BSC?
Before talking about Binance Smart Chain, we must briefly introduce Binance Chain (hereinafter referred to as BC). BC was launched in April 2019 and is the first public chain in Binance’s dual public chain plan. In addition to the basic functions of token issuance, usage, and exchange, the high throughput and low latency that BC showed were comparable to centralized systems and granted the Binance DEX great transaction speed and performance and hence, a great user experience. On the basis of the professional Binance Centralized Exchange, Binance Dex uses the advantages and concepts of a decentralized exchange to solve a series of pain points such as virtual increment of currencies and opaque user assets of centralized exchanges so the control of assets is returned to the user.
BSC can be regarded as a blockchain parallel to Binance Chain. At present, it mainly serves the Binance DeFi ecosystem and also makes Binance’s dual public chain model more complete. BSC presents a novel consensus algorithm. It adopts the PoSA (Proof of Stake Authority) consensus algorithm, which combines the functions of the Delegated Proof of Stake (DPoS) and Proof of Authority (PoA) mechanism, which is built on a network of 21 verification nodes and processes blocks in a matter of seconds, establishing a high-speed infrastructure for the DeFi protocol. BSC supports smart contract writing functions and is compatible with the existing Ethereum Virtual Machine (EVM) and all applications and tools in its ecosystem. Developers can easily implement the migration and deployment of Ethereum DApps and save development effort. Finally, as a parallel chain that can interact with BC, BSC natively supports cross-chain communication and transactions.
Why BSC?
Binance is one of the leading exchanges in the crypto space. Despite being one of the most successful and big exchanges in the space, Binance has never let their guard down and are always prepared for danger in times of peace. The traditional business of centralized exchanges, that is, cryptocurrencies trading has been now challenged by Auto Market Making (AMM) with rookie swap-type DEX such as Uniswap, which has led the DeFi wave in 2020.
Binance had been preparing for the next trend by preparing its own dual public chain plan. Since the launch of BSC, Binance has completed the development and implementation of DEX and Smart contracts on its main chain. In order to overcome the pain points that Ethereum shows when “DeFing”, in Binance’s dual public chain mechanism, smart contracts and DEX transactions are placed in two parallel public chains, BSC and BC, respectively. Users can develop DApps on BSC and benefit from Binance Dex’s high-speed transactions to solve the problem of network congestion caused by high-frequency trading, with the following advantages:
1. Smart contracts
As mentioned in the previous paragraphs, BSC supports smart contract writing functions. DApps with different functionalities is the basic elements of the DeFi ecosystem, while smart contracts represent the underlying rules and operating logic of DApps. At the same time, the programmability has greatly increased the scalability of BSC and realized the diversification of DApp functions. Therefore, smart contracts are the cornerstone of the Binance DeFi ecosystem.
2. Compatible with EVM
BSC is compatible with the existing EVM (Ethereum Virtual Machine) and all applications and tools in its ecosystem, which greatly reduces the threshold for developers to develop DApps. Developers can conveniently migrate and deploy Ethereum DApps on BSC directly, saving costly development efforts. The significance of the compatibility with EVM is the compatibility with the currently hottest Ethereum ecosystem, attracting developers and overflow funds from Ethereum, this is critical for boosting the start of the new Binance DeFi ecosystem. Of course, there are many people who think that BSC is used as a starting point, and that BSC, like TRON, is only a copy of Ethereum to a certain extent. Different people have different opinions on this.
3. Cross-chain function
The significance of cross-chain is to enrich the currencies and tokens of the DeFi ecosystem and increase liquidity. Up to now, Binance has completed the development of the cross-chain interoperability for BTC, ERC20 on Ethereum (ETH, LINK, USDT, DAI, etc.), XRP, BCH, LTC, ADA, DOT, XTZ, EOS, ONT, and other assets. This also means that these assets can be migrated to the Binance Smart Chain and become liquidity for DeFi operations.
How to Explore BSC with TokenPokcet
- Open TP Wallet on mobile. Tap on [No account] — [Binance Smart Chain] — set up your password and finish mnemonics words backup. Please read the instruction carefully.
After successful mnemonics words backup, you will see a new BSC account created in your wallet. Tap on [Discover] to explore the BSC DApp world.
2. How to transfer BEP20 tokens with TokenPocket?
Select BNB or other BEP 20 tokens on BSC and tap on [Transfer]. There are three ways to transfer: normal transfer, transfer to a contact, and scan transfer. Please make sure that the recipient address and the amount are correct. Choose the Gas fee and tap on [Confirm] to complete the transaction.
3. Explore DeFi ecosystem on BSC
TP Wallet has listed a number of BSC DeFi products, including Swaps, lending protocols, and machine-gun protocols. You can explore by tapping on [Discover].
On the recommendation section, we have added Binance. In Binance section, you are able to find DeFi projects including Bounce, BSC Swap, AnySwap, YFII Vault, and Cream Finance, etc. Explore these Dapps with TokenPocket by one-click!
Apart from DeFi applications, users are allowed to access the BSC explorer and some gaming DApps.
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