Binance wanted to improve the functionality of its blockchain, and it managed to do that in the BNB Chain, which has taken the positive features of the past platforms and added new ones.
The BNB chain is the network that powers the Binance Coin, or BNB for short, and is popular because of the low transaction costs and fast transaction processing time. BNB Chain was developed to increase interoperability and overcome the limitations of the Binance Smart Chain (BSC).
Binance Coin is a cryptocurrency that has increased significantly in recent years. If we look at the BNB crypto price prediction, we will see that this digital coin can grow even more in value in the following years. This article will explore the BNB Chain more, so keep reading to learn more.
What is the BNB Chain?
BNB Chain is a project founded by Binance, the name of which stands for “Build’ N Build,” and emphasizes that the platform wants ongoing development from the community. The BNB Chain is formed of five blockchains that all serve different purposes.
The chain also popularized BNB, an important cryptocurrency and a great way to pay fees on Binance. The BNB Chain is a mix between two main chains, the BNB Smart Chain and the BNB Beacon Chain.
The first is used for the staking and governance of the BNB tokens, while the second has added smart contract capabilities compatible with the Ethereum Virtual Machine.
The BNB Chain ecosystem also contains specialized networks, such as the opBNB and zkBNB, that use zero-knowledge rollups, aiming to facilitate the development of apps by providing lower transaction costs and high throughput.
The Evolution of BNB Chain
Both BNB, the digital coin, and Binance, one of the most important crypto exchanges, were launched in 2017, but their own blockchain was introduced later. The first one was the Binance Chain, but because it had some restrictions, Binance developed the Binance Smart Chain, which also introduced smart contract applications.
Over the years, Binance has grown more in popularity, and so has the BSC. Because it was launched at the same moment as the DeFi boom, blockchain has experienced steady growth.
This has also helped the BNB grow its value, and if we look at its evolution, we would see an increase in its price. Although the BNB coin was first created as an ERC-20 token on Ethereum, it soon moved to the Binance Chain.
What is the BNB Chain Used for?
BNB Chain wants to become one of the most popular blockchains worldwide and to represent a fast and low-cost alternative to Ethereum. Its native token, BNB, has become a very popular cryptocurrency and is in the top 10 in terms of the number of cryptocurrencies by market cap.
Besides being home to the Binance Coin, the BNB Chain also has a lot of apps developed for it. Decentralized applications have started to be used in plenty of industries, and even though they were utilized primarily for gaming purposes at first, they have now expanded to the finance world.
The BNB Chain can also support MetaFi development, a combination of meta that wants to be a huge ecosystem and fi used for DeFi. MetaFi contains all the innovations of GameFI, Metaverse, SocialFi, DeFi, and NFTs in the same space.
The BNB Chain wants to facilitate the development of MetaFi with the help of numerous robust and interoperable projects where all creators can join and create a magical world.
Let’s Look at the Pros and Cons of the BNB Chain
As it happens quite with everything, BNB has both advantages and disadvantages that should be considered. So, let’s take a look at them.
The Pros of the BNB Chain
One of the main advantages of the BNB Chain is that it offers cheaper transactions, as BNB is more affordable than other blockchains and cryptocurrencies.
Furthermore, the BNB Chain is very fast, producing a new block every 3 seconds, which is more rapid than Ethereum, which needs 13 seconds. It also supports smart contracts compatible with EVM so that everyone can migrate their dApps on this platform.
The Cons of the BNB Chain
The major cons of the BNB Chain are that it can be seen as a centralized platform because it is heavily supported by Binance. Additionally, some say that the BNB Chain has a slow development, as the innovations are mainly happening on Ethereum and not BNB, so Ethereum is still the number one option that people have in mind.
Conclusion
In the past, Binance created the BNB Chain, which represents the blockchain that supports BNB. BNB Chain is an open-source and decentralized ecosystem where users can store, create, and exchange data. BNB Chain supports smart contracts that execute the task if the set conditions are met.
BNB Chain is a merge of the two blockchains created before, the BNB Beacon Chain and the BNB Smart Chain. The BNB Beacon Chain handled the governance and staking on Binance, while the BNB Smart Chain enabled all the other innovations on the platform, including smart contracts and DeFi.
As Binance is the most popular crypto exchange, in the future, the BNB Chain will surely continue to increase as well, cementing its further position as one of the best blockchains where developers can create many applications.
The future also looks bright for the BNB Coin, which can increase even more in the future and maximize its market capitalization and user base. As you can see, Binance has gone through an upward trajectory from the moment it was created and has managed to make a name for itself and create an entire Binance ecosystem.
