What is Binance Smart Chain (BSC)? Is the opportunity to make money from BSC high?
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Binance Smart Chain and Binance Coin (BNB) created a new “craze” in the crypto investment market between the end of 2020 and the beginning of 2021. This has attracted the attention and attention of the community crypto investment.
So what is Binance Smart Chain? How is the trend developing? Is there a high chance of making money from BSC? Let’s refer to the information in the article below to better understand this emerging Blockchain.
What is Binance Smart Chain (BSC)?
Binance Smart Chain (BSC) is a smart Blockchain platform running on the Ethereum virtual machine (EVM), built and developed by the world’s largest cryptocurrency exchange Binance.
BSC runs side-by-side with Binance Chain, a blockchain platform from Binance launched in early 2019. BSC helps you create smart contracts, compatible with Ethereum’s EVM virtual machine while also supporting Cross-Chain with Binance Chain.
In fact, Binance Smart Chain is a blockchain clone of Ethereum that initializes the blockchain using the Proof of Staked Authority (PoSA) algorithm – a combination of the Proof of Stake (PoS) and Proof of Authority (PoA) algorithms. By design, BSC offers simultaneous cross-chain compatibility from all three networks BCS, BNB, and Ethereum.
Users of Binance Smart Chain
Binance Smart Chain was created for all programmers. Especially for dApps who wish to build applications with the Smart Contract feature for the purpose of protecting tradeable digital assets. In addition, BSC also allows the issuance of digital tokens and allows simultaneous transactions based on both chains.
From that, it can be understood that Binance Smart Chain offers many attractive opportunities for those who own BNB. Especially when those investors are interested in staking BNB to support the development of the BSC ecosystem and receive many rewards.
How does Binance Smart Chain work?
+ Consensus Algorithm: The Binance Smart Chain uses the Proof of Staked Authority (PoSA) consensus algorithm. With PoSA, participants can stake BNB to become validators. If they provide a valid block, they will receive transaction fees from the transactions in it.
+ Cross-chain compatibility: The Binance Smart Chain is an independent but complementary system to the Binance Chain. Dual-chain architecture is being used to make it possible for users to seamlessly transfer their assets from one Blockchain to another. With this feature, people can quickly transact on Binance and support decentralized applications built on top of BSC.
+ Decentralized Finance on Binance Smart Chain: Several cryptocurrencies such as BTC, LTC, ETH, EOS, or XRP currently exist on the Binance Chain as “Peggy coin”. These Peggy coins are tokens that are tied to assets on the original chain.
For example, you might decide to lock up 10 BTC to receive 10 BTCB on the Binance Chain. At any time, you can trade to change that 10 BTCB into 10 BTC. This means that the price of BTCB must also closely follow the price of the original BTC.
Relying on the flexibility of the Binance Smart Chain, other crypto-assets backed by blockchain can be used on the Decentralized Finance space. For example, apps like Pancake Swap allow users to exchange assets without trusting anyone (like Uni Swap), allow participation in Yield Farming, and vote for approval.
Outstanding advantages of Binance Smart Chain
The solution of Binance Smart Chain will combine the best of the two technologies together. Block generation time is shortened and low transaction costs will help new users convert assets faster with lower transaction costs. At the same time, EVM-compatible programmability and cross-chain communication will improve work efficiency for programmers.
Binance Smart Chain can be used based on the following outstanding advantages:
+Binance Smart Chain is an independent blockchain that provides security and safety to all users and developers.
+Binance Smart Chain is EVM-compatible and will support all existing Ethereum engines with faster and cheaper transactions.
+Smart Chain’s interoperability between two blockchains will enable cross-chain communication and scaling for high-performance dApps that expect a fast and smooth user experience.
+ Smart Chain’s on-chain governance through Proof-of-Stacked Authority consensus mechanism, which combines 21 transaction validators, will bring decentralization and significantly increase decision participation community decision.
Opportunity to make money from BSC
BSC is called an ecosystem because the projects and currencies in this ecosystem all interact and anchor each other’s prices.
Tokens are pegged to BNB so when BNB has an inflow of money and increases in price, other coins in BSC will also receive a part of this flow. Like the way water flows from large rivers to small tributaries, canals.
With our ambition, surely Binance and CZ will contribute to bringing the whole BSC ecosystem to a new level and we will also make a lot of profit when swimming with this “rich” flow.
So, if you are really interested in DeFi, follow CZ or Binance on Twitter, find out the projects they are interested in, and especially read more to hunt for good projects early. So that when the cash flow is really big, we can get the biggest profit.
You may have missed the world’s tech party when the Internet was born, but don’t miss the next one. We are just in the dawn of DeFi, a time when very little is known about it.
In general, according to experts, Binance Smart Chain is an optimal solution because of its high compatibility with EVM allowing users to perform transactions quickly with low transaction fees. BSC also enhances community participation and integrates many smart features.
As a result, BSC’s BNB coin also has a more sustainable future. BNB is a bright coin in the current period for investors to pay attention, learn and consider options.
Read more: Binance