Introducing BNB Chain

On February 15, 2022, Binance Chain and Binance Smart Chain converted to BNB Chain. BNB Chain is an open source and community-first ecosystem, built on a decentralized and permissionless environment.

The main mission of BNB Chain is to provide the core infrastructure necessary for future public adoption, while building a better ecosystem for MetaFi adoption.

See more: 5 minutes to learn about MetaFi

Components of BNB Chain

BNB Chain includes:

  • BNB Beacon (formerly Binance Chain): BNB Chain governance (staking, voting)

  • BNB Smart Chain (formerly Binance Smart Chain): EVM compatible, consensus layers, and hubs for multi-chain.

BNB Beacon

The purpose of Beacon Chain is to provide an efficient blockchain ecosystem that operates alongside a DEX to provide an alternative marketplace for issuing and exchanging digital assets in a decentralized manner.

For users:

  • Send and receive BNB

  • Issue new tokens to digitize assets and use Beacon Chain as the underlying exchange/transfer network for assets

  • Send, receive, burn/mint and freeze/unfreeze tokens

  • Compiled an on-chain governance proposal for BNB Smart Chain

For traders:

  • Proposal to create trading pairs between two different tokens

  • Send orders to buy or sell assets via trading pairs created on-chain with the SDK

  • Monitor the DEX market to confirm prices and market activity of certain assets

For developers:

  • Explore transaction history and on-chain blocks through the Binance Chain Explore, API and RPC interface.

  • Run a full node to listen and stream live updates on transactions, blocks, and consensus activity.

  • Extract other Binance Chain data via full node or APIs.

  • Develop tools and applications to help users use Binance Chain and Binance DEX.

BNB Smart Chain (BSC) 

BNB Smart Chain (BSC) is described as a blockchain that runs parallel to the Beacon Chain. Unlike Beacon Chain, BSC has smart contract functionality and compatibility with the Ethereum Virtual Machine (EVM). The BSC design goal is to preserve the Beacon Chain's high throughput while introducing smart contracts into its ecosystem.

BSC is EVM compatible so there will be support for Ethereum and DApp engines. In theory, this makes it easier for developers to port their projects from Ethereum. For users, that means applications like MetaMask can easily be configured to work with BSC.

For users:

  • Send/receive BNB and other BEP2 tokens cross-chain.

  • Explore transaction history and on-chain blocks, through the bscscan, API and RPC interface.

  • Stake BNB to earn some block rewards.

For developers:

  • Issue new tokens to digitize assets.

  • Migrate existing DApps.

  • Run a full node to listen and stream live updates on transactions, blocks, and consensus activity

  • Become a validator of BSC – testnet and mainnet.

  • Develop wallets and tools to help users use Dapps

New role of BNB token

BNB (formerly Binance Coin), now “Build and Build”. As well as fueling transactions on BNB Chain similar to gas on Ethereum, BNB also acts as a governance token.

Holding BNB gives holders the right to express their voice and is necessary to participate in the decentralized governance of the BNB Chain. This also brings many benefits to users, projects and developers connected to the BNB Chain Community.

Over the past year, the BNB Chain community has made many further technical upgrades to advance decentralization, including:

  • Initiate the Bruno hard fork to increase the BNB burn rate.

  • New, objective and verifiable BNB Auto-Burn protocol.

The goal of BNB Chain

MetaFi is an important part of helping BNB reach more than 1 billion users. BNB Chain's mission is to build the infrastructure that powers the virtual ecosystem in parallel and fulfill its commitments to the community:

  • Open

  • Multi-chain

  • For creators.

  • Decentralized forever

  • Future development

Future development

In 2017, Binance and BNB were born. Three years later, BSC launched in September 2020. As Binance grew, so did Binance Smart Chain. BSC arrives just in time for the DeFi revolution, as the community becomes increasingly interested in alternative financial solutions and use cases powered by blockchain. Today, both Binance and BSC are still connected by BNB.

BNB Chain will include large-scale applications, GameFi, SocialFi and Metaverse. In the future, BNB chain will aim to:

  • Scale from one chain to multiple chains

  • Increase throughput of BSC

  • Introducing on-chain governance mechanism

  • Improved scaling solutions and expanded BSC validators from 21 to 41 (with 20 validators functioning as candidate block producers).

summary

The birth of BNB Chain plays an important role in the development of BNB tokens, Binance Chain along with the Binance Smart Chain ecosystem. Hopefully the information in this article helps you better understand BNB Chain.