What Is Binance Smart Chain?
Before Binance Smart Chain, you have to know about Binance Chain. Binance Chain is a digital platform that allows you to do different cryptocurrency deals like buying, selling, exchanging, and more. But, it has some flaws in the back-end coding part. Binance Smart Chain is the solution to handle those issues.
It is another blockchain that works parallelly with the main Binance chain. Not to mention, it has more advanced features to build different DApps. You can use both platforms at the same time to get all the advantages.
Who Created Binance Smart Chain?
As you already know, Binance Smart Chain is the improved assistance of Binance Chain. Their founder is the same person. Changpeng Zhao is the founder and owner of the platform. He actively holds the current position of CEO. Binance Exchange is one of the largest Crypto exchanges by volume in the world. They also have a Binance US exchange specifically catered to US customers.
Binance Smart Chain Investors
Binance Chain has become one of the leading cryptocurrency platforms globally. Its functionality and features made it possible. Although, there are a lot of investors behind such success. According to CrunchBase, the platform currently has 14 investors. Vertex Ventures, Black Hole Capital, and Funcity Capital are the three leading investors of the platform.
When Was Binance Smart Chain Founded?
As for the established date, Binance Smart Chain was founded in April 2019. Binance Chain was founded way earlier. It was established in 2017. Besides, the platform was based in China but they have moved to Japan recently.
Is Binance Smart Chain A Blockchain?
Yes, of course. We are discussing a blockchain platform and another parallel blockchain system. Binance chain is the main blockchain platform and Binance Smart Chain is the parallel one. Here, all the Binance Smart Chain crypto dealing and services are preserved through a blockchain mechanism.
Is Binance Smart Chain A DeFi?
Yes, it is. As you should know that DeFi means Decentralized Finance. It is a virtual financial mechanism that operates all the transactions without any intermediaries. Regarding that, Binance Smart Chain’s services and transaction policies are run by decentralized policies. So, Binance Smart Chain projects are surely DeFi projects.
Is Binance Smart Chain Anonymous?
Anonymous means you don’t have to provide any personal information for the transaction. Binance Smart Chain is one of the best platforms for anonymous dealing. Although, it has some conditions. You can only go up to 2 BTC per day for anonymous transactions. More than that, you need verified personal information.
Does Binance Smart Chain replace Ethereum?
There are many platforms potential enough to replace Ethereum. Ethereum is a smart contract enabled programmable blockchain and it is popular and has been going on for a long time. As many new tokens are getting introduced with more applications, their high rise seems to challenge Ethereum.
As for Binance, their BNB token is getting more than 500% recent market rise. Its capability to run alongside other blockchain and high adaptability to DApps is amazing. This Binance Smart Chain price rise and features make it the perfect competitor to Ethereum.
What Is Binance Smart Chain Used For? Who uses Binance Smart Chain?
The basic usage of the Binance Smart Chain is a little bit different than the Binance Chain. While the Binance Chain is used for regular cryptocurrency dealing, Binance smart Chain is to improve those services. It also offers exclusive features to build different DApps. Not to mention it is much faster and more organized.
As for the user, anyone who is interested in parallel blockchain is acceptable. It is to get the most features out of both platforms. Moreover, any DApp developer would be interested as well. A perfectly optimized and efficient platform for the developers.
How Does Binance Smart Chain Make Money?
Binance Smart Chain is optimized for making different DApps. Not to mention, it has more speed and capability than the Binance Chain. But making money with DApps depends on several factors. Usually, it is a little bit hard with low volume. You need decent traffic to learn sufficiently. As for Binance Smart Chain, it has a high user volume.
Different types of DApps like games, airdrops, gambling, nifty and other things are a great source of earning for the platform. Not to mention, it gets a high share because of the supporting role from Binance Chain. The platform earns a huge chunk of money together. Its recent 200% market rise is the proof.
Is Binance Smart Chain A Good Investment?
Binance Smart Chain ecosystem is going through a huge market surge. As we have mentioned before, Binance token BNB is getting more than double market rise. Recently, it has gotten even higher than 500%. According to the Binance Smart Chain price prediction, the price may reach even higher.
Considering such impressive profit and also their trusted reputation, it is a good investment. You are getting all the cryptocurrency dealing facilities along with development features.
Not to mention the background security that is going on stable for a long time. All these potential profits and trusted mechanisms make the platform a suitable place for investment.
How Does Binance Smart Chain Work?
The very basic work style of the Binance Smart Chain is to provide a parallel blockchain mechanism. Because of that, Binance Smart Chain crypto exchange and development become easier. You can develop in it and directly apply them into the Binance Chain.
Binance Smart Chain’s token is also known as the BEP-20 token that is potential enough to replace the Ethereum ERC 20 token. Because of the cross-chain policies, BEP 20 token is exchangeable with BEP 2 and BEP 8 token.
Besides, we have told you that Binance Smart Chain is a DeFi protocol. It allows you to complete transactions with other coins like BTC, ETH, LTC, and more. As for staking, it has a PoSA algorithm. This mechanism allows you to invest and earn possible profit from the platform.
Overall, it co-operates with the Binance Chain to give a user access to it along with extra exchanging and staking facilities as a secondary and supportive blockchain. As a reminder, if you are thinking about where to buy Binance Smart Chain coin, then follow our previously mentioned wallet protocols.
Binance Smart Chain Integration
Integration means connection. As for the crypto world, integration means apps that connect a platform with others. It is like a bridge among multiple protocols. Binance Smart Chain has multiple integrations like that. First of all, Binance Access. It is the integration for a B2B connection. It builds the connection between the platform and partners or merchants.
The next one is the Binance Widget. It connects the website or any access point with the market. You can buy, sell, trade, exchange, invest, or anything else with it. There is a broker program to connect the platform to a special exchanging facility. The next one is the Binance cloud that offers complete exchanging features.
Many other integrations directly connect another platform with the Binance Smart Chain. Kira and Dusk Network are two of the popular integrated platforms. Ledger, Metamask, and many other platforms are also on the integrated list.
Does Coinbase Accept Binance Smart Chain?
According to the official statement, Coinbase does not support any of the Binance Smart Chain or Binance Chain Coin. Although, it is expected to get recognition pretty soon.
Does Kraken Support Binance Smart Chain?
No, Kraken doesn’t support Binance Smart chain. According to Binance Smart Chain review 2021, Kraken does not support Binance’s Smart Chain coins nor Binance Chain. Formally, they do not support BEP 20 or BEP 2 tokens.
Does ledger support Binance Smart Chain?
Yes, Ledger supports Binance Smart Chain. According to the official statement, Ledger support Binance Smart Chain. The usage procedure is pretty easy as well. Get the ledger app and connect it with the ledger device. Then, search for the Binance menu and from the app catalog. Install it and you are ready to go. Follow the official instruction for any kind of transaction or verification.
Does MetaMask support Binance Smart Chain?
Yes, Metamask supports Binance. With the recent update, you have to go through a custom network configuration for Binance Smart Chain but there is official instruction to do so.
As you already know Metamask is one of the largest and popular digital wallets. Getting access through it makes the platform usage even easier. Check our Metamask Review to learn more about it. As for the procedure, follow our instructions given below.
- Go to the metamask wallet official webpage.
- Create an account and verify it with the required information.
- Make sure to make a strong password for basic and backup protection.
- Complete the backup phrase.
- Go to the setting option and add a network.
- You can set it up from testnet or mainnet.
- For Testnet: RPC URLs, ChainID: 0x61, 97(deci), Symbol: BNB, Block Explorer: https://testnet.bscscan.com
- For Mainnet: RPC URLs, ChainID: 0x38, 56(deci), Symbol: BNB, Block Explorer: https://bscscan.com
- Go to the faucet page and paste the address to claim BNB.
Does Bittrex Support Binance Smart Chain?
There is no official notification about Bittrex to support the Binance Smart Chain. Neither BEP 20 nor BEP 2 is listed on their available token market. Not even the BEP 8 is available there. So, Bittrex does not support it for now.
Binance Smart Chain Governance
Do you know what a governance token is? As for the information, most tokens are governance tokens. Governance is a virtual authority that allows users to put their opinion about the token or platform. The opinion can be anything. It can be a suggestion for improvement or criticism for downgrade.
As the crypto world is virtual and based on simply coding materials. Every platform and service is getting updated regularly to adapt to the demand and market situation. So, a governance token helps the developer to get feedback. Improvement is mandatory to hold the ground in the crypto world.
As for Binance Smart Chain, their token BEP 20 is a governance token and every user has to provide their feedback to use it.
Binance Smart Chain Vs Ethereum
|Factors||Binance Smart Chain||Ethereum|
|Chain||Parallel Chain||Single Chain|
|Fee||Lowest Cost||Much Higher than Binance Smart Chain|
|Scaling and Transaction Speed||Higher||Moderate but not good enough|
|Volume||Pretty Small||One of the top platforms in the market|
|DApps||Specialized and Fast||Famous|
|Market Rise||Too high||Steady|
Does Binance Smart Chain have smart contracts?
Before going for that, you have to learn about smart contracts. Smart contracts are the latest technology to deal with financial conditions. The token user may put any of his/her conditions into the code and attach it with the token. A token that is connected to a smart contract can be used for the decentralized transaction.
It will automatically distribute the token and execute the conditions. Moreover, the token would be trackable. As a reminder, a smart contract transaction is irreversible. When the buyer agrees with the condition, a smart contract will complete its actions. Else, the token will be backed or change places automatically for a potential new buyer.
As for Binance Smart Chain projects, they are the DeFi project. Not to mention, its token BEP 20 can be utilized in different blockchains automatically through a smart contract. So, Binance Smart Chain is operated by smart contracts for the highest scaling and execution skill. This is one of the reasons for such high speed and low transaction cost of the platform.
Is Binance Smart Chain a security for SEC?
SEC denotes the Security and Exchange Commission in the US. It regulates anything that is deemed a security under Howey test. If you hold anything with an expectation of profits and appreciation, then mostly likely that asset is a security and comes within the purview of the SEC in the US.
An utility token is something that SEC can’t regulate at the moment because it is a gray area and Howey test fails to address this. Binance Smart Chain and its projects are utility projects and tokens.
BSC projects have smart contracts to track the tokens automatically and other security features to check them regularly. The development is potential enough to add more security features.
How Secure Is Binance Smart Chain?
As for Binance Smart Chain, its token services are developed and shared from the main Binance Chain protocol. It has many security features like address management that check potential address distortion during withdrawal. Moreover, it has a U2F authentication for even deeper security. It allows a user to use the account only from selected devices.
Besides, it also has the popular 2FA authentication that is also known as two-factor-authentication. Considering all these features, Binance Smart Chain is pretty strong in its security position.
Although, you have to maintain the major security part by yourself. Binance has a record of being hacked and lost more than $40million worth of bitcoin. In the end, the platform completely paid for its customers.
Top 5 Binance Smart Chain Ecosystem Projects
You already know that Binance Smart Chain is a special DApps building platform. So, there are many projects done by different developers in the BSC ecosystem. They also got a high market rise along with satisfactory feedback. Here, we are going to talk about 5 of them.
The first one to introduce is the PancakeSwap. This platform offers different crypto exchange and other dealing facilities. You can buy, sells, exchange, trade, invest, yield farm and even participate in their exclusive lottery event.
As the Binance Smart Chain is fast and charges pretty low, this project provides more efficient performance than many platforms. These make the project one of the top Binance Smart Chain projects.
Venus is one of the most successful and potential projects in the Binance Smart Chain ecosystem. It is like a market where people can invest or borrow crypto values. A user can borrow crypto assets with the collateral of up to 75% of the borrowed value.
On the other hand, users can invest in the platform to farm yield and earn interest accordingly. It allows both VAI stablecoin and XVS tokens. It has a record of reaching more than $96 million transaction values within 7 days.
Arguably, this is the most popular and promising project from the Binance Smart Chain ecosystem. It is like an all-in-one solution where users can trade and invest their assets. Moreover, this protocol allows Nifty trading. A user can create a custom nifty to trade or join in a liquidity pool to yield a farm and more.
It has a unique token named BAKE. On top of that, it allows ETH, BTC, BAKE, DOT, LINK, and many other coins in the pool. With all these features and high efficiency, the platform is competing with UniSwap as a major rival.
The spartan protocol is another successful project from the Binance Smart Chain ecosystem. It uses smart contracts and a DeFi mechanism to form a yield farming space. Along with buying, selling, and trading, users can invest in a liquidity pool and earn interest accordingly.
It may not be the best but it is one of the top-grade projects and has the potential to offer more.
Unlike other protocols, Bounce is a different one among Binance Smart Chain projects. It is an auction platform for non-fungible tokens known as NFT or Nifty. To learn more about the non-fungible token, check out our Nifty Gateway Review.
In an auction, users can bid on ERC721 and ERC1155 tokens. They can use ETH or BNB as payment. Along with smart contracts and DeFi facilities, it offers a pretty low cost. That makes it pretty popular and potential enough to compete against protocols like Nifty Gateway. Nifty Gateway did the largest ever NFT sale on Ethereum recently.
How To Trade Binance Smart Chain Projects?
Trading in the Binance Smart Chain projects is pretty easy. We have already discussed different projects of the platform. While trading, it is the same as trading in the main blockchain. Follow our guidelines below.
- First, you have to create a Binance Chain account.
- Get access to the Binance Smart Chain by creating or join in one.
- Verify necessary information.
- Join in a suitable Project and verify the required information.
- Connect your account with a digital wallet like Metamask.
- Complete the connection with the required network setup.
- Fund your account and exchange any token as per the project preference.
- Complete the transaction and get confirmation.
How To Stake Binance Smart Chain Projects?
In simple terms, staking means investing. While investing in the Binance Smart Chain projects, you have to know about the automated mechanism and interest rate. Although, most efficient protocols automatically change from one protocol to another for the highest profit. Look for the features before investing in one.
As we have mentioned about the trading process, staking is similar to it as well. Instead of direct buying or selling, you have to exchange the currency into a suitable token. Then you have to invest them into the available project. Follow the given instructions below.
- Create Binance’s Smart Chain account by the official Binance chain homepage.
- Choose a strong password and make sure to back up the account.
- Provide verified information.
- Connect the account with a suitable digital wallet like metamask.
- Connect your wallet with the BSC project and verify it.
- Add funds to your digital wallet from a fiat currency exchanging platform.
- Fund the BSC account from the digital wallet.
- Convert them into the project’s recommended token.
- Invest the values into the liquidity pool and start yield farming.
- For every complete transaction, you will earn a percentage of the fee.
- The reward will be proportional to your investment into the pool.
Binance Smart Chain Alternatives
While going for investment or trade, there are a lot of crypto platforms available in the business. Even though most of them have certain similarities but every one of them is unique from a different perspective.
Some of them have better background coding that makes them more efficient. Some of them charge less and some of them provide more intelligence features. With promising development, some of them come with the potential for future improvement. There are many other factors to judge them.
Considering these, Binance Smart Chain is not the only one suitable for such eye-catching facilities. Even though it is one of the most efficient and promising, there are many alternatives as well. Let’s have a look at some of them.
Binance Smart Chain Social Media Handles
The Binance Smart Chain community is pretty active on multiple social media platforms. There are 8 social media platforms where you can get regular Binance Smart Chain news and project updates. Binance Smart Chain Reddit, Twitter, Facebook, Instagram, and more are available. Let’s learn about them.
- Telegram: https://t.me/Binance_Info_English, https://t.me/binance_announcements, https://t.me/BinanceAcademyChat
- Facebook: https://www.facebook.com/binance
- Instagram: https://www.instagram.com/binance/
- Twitter: https://twitter.com/binance
- Reddit: https://www.reddit.com/r/binance/
- Weibo: https://weibo.com/u/7336825507
Takeaway – Binance Smart Chain Review
So, how do you like our review? Have you learned anything about the Binance’s Smart Chain? If you are still confused about the platform then let’s have a quick review of it.
Binance Smart Chain is a part of the Binance Chain protocol. There are some flaws in the Binance Chain. Instead of solving them within the protocol, they have introduced this amazing parallel blockchain. It shares the workload from the main platform and runs through a different mechanism that is much faster and accurate.
It has the smart contract and DeFi mechanism to combine with the custom projects. Because of such sharing and individual procedures, it costs much lower than other platforms. That makes it a potential competitor for many popular platforms.
Among the projects, it can be used for regular buying, selling, or other tradings. Moreover, it can be used for investment and borrowing. The platform also provides the liquidity pool for yield farming. Some projects also provide auction features to trade Nifties.
As for the security, rather than some unfortunate issues, Binance’s Smart Chain is pretty strong. As for the incidents, it paid fully to the users. So, you have very little to worry about.
With versatile usage and features, it is one of the most potential ones. Its absolute market rise is the proof. If you want to invest then don’t waste any more time. The market is so hot and BSC is staying on top of it. Get your deal today and follow our instructions for the best experience.
I am a data analyst by profession who loves to crunch numbers at daytime and come home wondering how my passive income numbers for the day look like. I believe in being rich rather than looking rich. Follow me for Cryptocurrency, FIRE, Personal Finance, Credit Cards and Digital Nomad updates