Binance Smart Chain (BSC) functions as a replica of the Ethereum blockchain with some distinctions. Although many aspects are similar in practice, BSC operates as a distinct blockchain with its native cryptocurrency token called Binance Token (BNB) and a dedicated ecosystem.
The rise in popularity of BSC can be attributed to the increasing usage and congestion on the Ethereum blockchain, leading to soaring transaction fees.
BSC stands out for its capability to process transactions at a significantly lower cost, primarily due to a fixed number of privileged validator nodes overseeing the blockchain. This design, while making the network more centralized and less secure, contributes to faster transaction processing.
Key considerations when engaging with the BSC ecosystem include:
- It operates as a standalone blockchain with a semi-centralized architecture.
- It has its own native cryptocurrency token (BNB) and a dedicated ecosystem.
- Transaction fees on BSC are paid in BNB tokens.
- BSC enables quick and cost-effective transactions.
- BSC has swiftly attracted numerous projects, establishing itself as one of the few blockchains with a flourishing ecosystem of decentralized services.