• About Us
  • Careers
  • Contact
No Result
View All Result
Wednesday, October 8, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Market Analysis
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverse
    • Glossary
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result
Home Explore DeFi

An Introduction To Binance Smart Chain

4 August 2021
in DeFi, Explainers
Reading Time: 4 mins read
106 7
An Introduction To Binance Smart Chain | DeFi Planet

Contents

Toggle
  • What Is Binance Chain?
  • What Is Binance Smart Chain?
  • Key Features Of Binance Smart Chain 
    • Consensus Mechanism
    • Compatibility with Ethereum
    • Coin “burns”
    • Cross-chain compatibility
  • In Conclusion…

Last updated on September 3rd, 2025 at 04:29 am

Binance Chain and Binance Smart Chain are different blockchains belonging to the same ecosystem.

Binance Coin (BNB) is the native token of the Binance ecosystem.  Binance Chain was an earlier version that was fraught with issues that undermined the growth of the ecosystem. It sacrificed some crucial elements to achieve ultra-fast trading speed. For starters, it was not as easily programmable as what was obtainable in other blockchains.

Binance Smart Chain is altering this, as it plugs the issues found in Binance Chain without sacrificing ultra-high trading speed. It is also compatible with its previous version, Binance Chain, to ensure continuity in the Binance ecosystem. Before diving into Binance Smart Chain, it is useful to first provide a summary of the Binance Chain.

What Is Binance Chain?

The Binance Chain was designed to improve decentralized and high-speed trading functionalities. The largest DApp on the Binance chain is its decentralized exchange, which is arguably one of the most seamless exchanges in existence. Users do not have to possess advanced knowledge of cryptocurrency before they can utilize the features of the decentralized exchange. It is also integrated with its easy-to-use online wallet, known as Trust Wallet.

What Is Binance Smart Chain?

Binance Smart Chain (BSC) added functionalities that were not in the Binance Chain which includes compatibility with Ethereum Virtual Machine (EVM) and smart contracts. An underlying concept surrounding BSC was to make it highly scalable like Binance Chain while adding smart contracts to the ecosystem. It also seeks to address the common blockchain challenge of scalability. 

The two blockchains operate in parallel to each other, incorporating the perks of both worlds for users to enjoy. It is important to note that BSC was not created to act as a layer 2 that depended on the Binance Chain for survival. They both work independently of each other, meaning that if a time comes when Binance Chain is no longer operational, BSC will continue work without disruption. Though they may have some differences, they still have incredible similarities, especially when considered from a  design standpoint. 

BSC plays a role in the fast-growing Decentralized Finance (DeFi) sector, with Decentralized Exchanges (Dexs), such as PancakeSwap, being hosted on the BSC.

Key Features Of Binance Smart Chain 

Below are some key features of Binance Smart Chain:

Consensus Mechanism

BSC uses the Proof of Staked Authority mechanism, which is a combination of both Proof of Authority (PoA) and Delegated Proof of Stake (DPoS). At the moment, the average block time is about three seconds.  

Validators are rewarded with BNB once they produce blocks, and before a person can be eligible for election, they should have staked more than 10,000 BNB.

Another category of users in the BSC ecosystem is delegators. They are in charge of staking the BNB behind the elected candidate.

Out of the elected candidates, those in the top twenty-one rank will be allowed to take turns while processing the blocks. They are chosen based on how much BNB they stake. Both validators and delegators are rewarded for their time. 

Compatibility with Ethereum

Binance Smart Chain is compatible with the Ethereum Virtual Machine (EVM), which allows it to work seamlessly with tools and decentralized apps on the Ethereum blockchain. Adding this feature makes it easy for developers to easily move their DApps from Ethereum to BSC and vice versa.

Coin “burns”

Binance is famous for its quarterly BNB coin burns. Binance has a public commitment to burn (or destroy) 20% of the profits made by its exchange every quarter. Since BNB is its native utility token, the regular coin destructions help to ensure BNB is not inflationary which in turn supports its market price.  Most recently, in July 2021, Binance announced that it had conducted its “16th quarterly BNB token burn of 1,296,728 BNB” (approx. $400m worth of coins).

Cross-chain compatibility

Binance Chain and BSC are compatible with each other, making it easy for users to easily port their assets from one chain to the other. Doing this has made users enjoy high-speed trading features on Binance Chain while utilizing BSC for decentralized apps and the likes. This cross-chain capability has opened the ecosystem to numerous features and perks. 

Binance Chain is the home to BEP-2 and BEP-8 tokens, which can be exchanged for BSC’s BEP-20 tokens. BEP-20 bears similar characteristics with ERC-20.

For those that want to transfer their tokens from one chain to the other, using Binance Chain Wallet is an easy option.  

In Conclusion…

Though BSC may be the updated version of Binance Chain, its compatibility with Binance Chain has made it a force to reckon with when chains are concerned. Its features have continuously attracted both developers and users.  

If you enjoyed reading this, follow DeFi Planet on Twitter and LinkedIn.

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Tags: BlockchaintechnologyCryptocurrency
Share66Tweet41Share12
Rose Nnamdi

Rose Nnamdi

Related Posts

A Beginner’s Guide to Stop-Loss and Take-Profit Orders
Explainers

A Beginner’s Guide to Stop-Loss and Take-Profit Orders

7 September 2025
Are Stablecoin-Backed Corporate Cards the Future of Business Spending?
Explainers

Are Stablecoin-Backed Corporate Cards the Future of Business Spending?

7 September 2025
GENIUS Act Vs. Waters Bill: How Does the Battle for Stablecoin Oversight in the U.S. Look Like?
Articles

GENIUS Act Vs. Waters Bill: How Does the Battle for Stablecoin Oversight in the U.S. Look Like?

6 September 2025
Peer-to-Peer Lending Explained: A Beginner’s Guide to Earning Passive Income
Articles

Peer-to-Peer Lending Explained: A Beginner’s Guide to Earning Passive Income

6 September 2025

Editors Picks

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

Web3 in 2025: Where We Are, What’s Next, and What the Data Says

byOlayinka Sodiq
21 July 2025
0

What Is a Rebase Token and How Does It Work?

What Is a Rebase Token and How Does It Work?

byOlajumoke Oyaleke
28 June 2025
0

What Are DeFi Options Vaults, and How Do They Work?

What Are DeFi Options Vaults, and How Do They Work?

byOlajumoke Oyaleke
26 June 2025
0

What Are Teardrop Attacks in Crypto?

byOlajumoke Oyaleke
17 June 2025
0

What Are Fractional NFTs, and How Do They Work?

What Are Fractional NFTs, and How Do They Work?

byBlessing Lisafi
7 February 2024
0

Read More

Chain of Thoughts

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

Zero-Knowledge Everything: Trust, Privacy, and Verification in the Digital Age

byOlu Omoyele
30 August 2025
0

...

What Happens When AI Gets a Wallet?

What Happens When AI Gets a Wallet?

byOlu Omoyele
31 July 2025
0

...

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

The Game-changing Triumvirate: Blockchain, Data Science, and Artificial Intelligence

byOlu Omoyele
30 June 2025
0

...

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

Markets Update

Your Weekend Crypto Roundup | September 2025 (Week 1)

1 month ago

Coinbase’s Preferred AI Coding Tool Suffers Virus Attack, Threatening Developer Security

1 month ago

Which Countries Own The Most Bitcoin in 2025?- Top 10

1 month ago

Top 10 Best Performing Altcoins of H1 2025

1 month ago

Binance CEO to Visit South Korea Amid Regulatory Push

1 month ago

Ripple Expands RLUSD Stablecoin to Africa Through Key Partnerships

1 month ago
Read More

Events

  • No events
  • Spotlight

    All about Ethereum
    All about Algorand
    All about Bitcoin
    All about Gora

    Press Releases

    Rome Launches Its Genesis NFT Collection “Imperia” on Magic Eden Launchpad

    bychainwire
    8 October 2025
    0

    Meanwhile, Bitcoin Life Insurer, Secures $82M to Meet Soaring Demand for Inflation-Proof Savings

    bychainwire
    8 October 2025
    0

    Pepeto Presale Exceeds $6.93 Million; Staking and Exchange Demo Released

    Pepeto Presale Exceeds $6.93 Million; Staking and Exchange Demo Released

    bychainwire
    7 October 2025
    0

    Eightco Holdings Inc. ($ORBS) Digital Asset Treasury Launches “Chairman’s Message” Video Series

    Eightco Holdings Inc. ($ORBS) Digital Asset Treasury Launches “Chairman’s Message” Video Series

    bychainwire
    7 October 2025
    0

    Zeta Network Group Enters Strategic Partnership with SOLV Foundation to Advance Bitcoin-Centric Finance

    Zeta Network Group Enters Strategic Partnership with SOLV Foundation to Advance Bitcoin-Centric Finance

    bychainwire
    7 October 2025
    0

    Read More

    ADVERTISING

    ABOUT

    TEAM

    CAREERS

    CONTACT

    TERMS & CONDITIONS

    PRIVACY POLICY

    © Copyright 2025 DeFi Planet

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In

    Add New Playlist

    No Result
    View All Result
    • News
      • People
      • Business
      • Crime
      • Regulation
      • Crypto
      • CBDC
    • Market Analysis
      • Bitcoin
      • Ethereum
      • Stablecoins
      • Altcoins
      • Crypto ETFs
      • Memecoins
    • Policy
    • Articles
      • Press Releases
      • Opinion
      • Explainers
      • Guest Post
      • Sponsored
    • Directory
      • Companies
      • People
      • Products
      • Wallets
    • Multimedia
      • Videos
      • Podcasts
    • Learn
      • DeFi Basics
      • Tutorials
      • Reviews
      • Blockchain Fundamentals
    • Research
      • Case Studies
    • Explore
      • DeFi
      • Crypto Gaming
      • NFT
      • DAO
      • Metaverse
      • Glossary
    • Jobs
    • Markets Pro
      • DeFi Planet Pro
      • Spend Crypto
      • Swap Crypto
      • Coin Prices
      • Crypto Exchanges
      • Crypto Analyzer

    © Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

    -
    00:00
    00:00

    Queue

    Update Required Flash plugin
    -
    00:00
    00:00