What is Binance Smart Chain?
Binance Smart Chain (BSC) is a blockchain network built for running smart contract-based applications.
BSC is an independent blockchain that runs parallel to Binance's native 'Binance Chain' (BC) and offers compatibility with the 'Ethereum Virtual Machine' which means that it can run Ethereum based platforms. This is useful because the gas fee's and congestions on the Ethereum network make it difficult for developers to come out with new DApps.
The aim of the platform is to enable developers to build decentralized applications (DApps) and help users manage their digital assets across different blockchains.
- 1.Independent Blockchain - operates independently of Binance Chain
- 2.Ethereum Compatible - Smart contracts built on the Ethereum network are compatible on the BSC network
- 3.Supports Staking and Community-Based Governance - Proof of staked authority which is a combination of proof of stake and proof of authority. This is how BSC validates and ensures security
BSC combines both delegated PoS and proof-of-authority (PoA) to achieve network consensus and maintain blockchain security. PoA combats against security issues like 51% attacks.