Binance has launched a new blockchain network called Binance Smart Chain (BSC) that runs side to side to the Binance. With this blockchain network, it will be possible for users to create smart contracts for tokens and stake Binance Coin (BNB). This chain could also be useful to attract DeFi users and money.
Binance Launches the Binance Smart Chain
The new BSC and the solutions that the network is offering will allow both the Binance Chain and the Binance Coin to increase their utility over time. The chain includes a Proof of Staked Authority (PoSA) consensus mechanism that is highly useful for developers, token holders and validators.
In recent months, the Decentralized Finance (DeFi) market has been growing and attracting a large number of developers and investors. There are several projects and protocols that are attracting funds due to the high yield they are offering to users.
Binance does not want to be left behind and wants to be part of the current revolution of the DeFi market. With the new BSC, developers and DeFi projects will have the possibility to use the main features of this network to launch and improve their DeFi solutions and attract new users.
Binance claims that the new blockchain network will help the crypto ecosystem grow by using the Binance Decentralized Exchange (DEX). At the same time, transaction fees are going to be as low as 1 cent. These fees, compared to other blockchain networks are certainly low and they will allow users to process transfers without having to be worried about the fees they pay.
In addition to it, its cross-chain DeFi mechanism will allow DeFi projects to have increased interoperability, which can help developers release new solutions and products. Furthermore, the Binance community is very large and this could help these DeFi projects have a larger number of users from all over the world.
It is worth taking into consideration that a large number of crypto companies and projects have been working on this project. Some of the DeFi protocols that have been helping Binance with the project include Swipe, Aave, WazirX, DODO, dForce, Bounce.finance, DeBank and many others.
Other companies that are also working with Binance include Dapp.Review, Ontology, Travala.com and Republic.co, among others. This shows Binance is trying to offer the necessary solutions for blockchain networks to expand and for virtual currencies to reach a large number of new users.