Binance crypto exchange is set to launch a new Ethereum-compatible blockchain, with BNB as a native token. The company has released a whitepaper for the upcoming Binance Smart Chain (BSC) that would have smart contracts functionality like Ethereum.

Binance already operates its native blockchain known as Binance Chain (BC), which is distributed but not very decentralized. This is the blockchain which powers the company’s decentralized exchange, Binance DEX. However, Binance noted that this blockchain doesn’t provide enough freedom and flexibility to the developers of decentralized apps. Hence, the need to develop a parallel blockchain to the current Binance chain.

According to the announcement, the BSC will retain the high performance of the native Binance Chain blockchain, while supporting an intuitive version of Smart Contract functionality. The announcement further noted that both Binance Chain and Binance Smart Chain will enable transfers and other communication through the native support of interoperability. It added that, the Binance DEX will however remain a liquid exchange venue of assets on both chains.

Binance noted in the announcement that the proposed Binance Smart Chain has several unique features which brings the best of the two technologies together. Some of which include its ability to provide security and safety to developers since it’s a sovereign blockchain. It also offers faster block times and cheaper transaction cost.

Its EVM-compatible programmability and native cross-chain communication enables it to support all of the existing Ethereum tooling. The BSC will run by 21 validators, with a Proof of Stake Authority consensus mechanism. This provides high level of decentralization and enables significant community involvement.

Notably, with BNB as BSC’s native token, holders of the token will be able to participate in staking and earn rewards. According to Binance, this is an attractive opportunity to all BNB holders who are interested in staking their tokens to support the new blockchain’s development and earn rewards.