Binance With a New Blockchain to Support Smart Contracts

Binance cryptocurrency exchange announced a new blockchain with BNB as a native token. A blockchain called Binance Smart Chain (BSC) will support the functionality of smart contracts.

“The first practical and widely-used Smart Contract platform is Ethereum. To take advantage of the relatively mature applications and community, BSC chooses to be compatible with the existing Ethereum mainnet,” Binance write in whitepaper.

The exchange already uses its own blockchain called Binance Chain (BC), which runs the decentralized Binance DEX exchange. But since it “doesn’t provide enough freedom and flexibility to the developers of decentralized apps (dApps),” Binance decided to launch another blockchain.

BSC will interact and work in parallel with BC. “The Binance DEX will remain a liquid exchange venue of assets on both chains. This dual-chain architecture will empower its users to build their decentralized apps and digital assets on one blockchain and take advantage of the fast trading to exchange on the other,” says Binance.

BNB owners will be able to use tokens for a stake in the Binance Smart Chain. The exchange noted that staking at BSC will be “an attractive opportunity for all BNB holders who want to support the development of the Binance Smart Chain and receive rewards.”

The exchange says BSC will support all existing Ethereum tools along with faster and cheaper transactions.

Author: Marko Vidrih

Featured image credit: Pixabay