Binance, the largest centralized crypto exchange (CEX) is also associated with the popular layer-1 blockchain network, Binance Smart Chain (BSC), compatible with the Ethereum Virtual Machine (EVM). While in February 2022, BSC was rebranded as a BNB Smart Chain to emphasize its independence and decentralized nature, it’s still known under both namings.
Due to the extensive infrastructure support and high optimization, its transactions are fast and very cheap. Let’s look closer at what is Binance Smart Chain and how it evolved into BNB Chain we know today.
What is Binance Chain?
Shortly after being founded in 2017, Binance started to develop its own blockchain ecosystem. The exchange issued its coin, BNB, based on Ethereum. It was used as the utility token for Binance users: for example, all Binance fees can be paid using the token. But what is smart chain, and how did it evolve to that?
Source: Binance
In 2019, Binance launched its Binance Chain, and therefore BNB token was migrated to it. It was used for governance, with staking and voting options, adopting the BEP-2 token standard. Later, in 2020, it launched the modern Binance Smart Chain, rebranded as BNB Smart Chain in 2022. It has a full-scale smart contracts and dApp support, and the old chain has been known as the BNB Beacon Chain since then. BSC supports the BEP-20 token standard, in many ways similar to Ethereum’s ERC-20.
Therefore, comparing two standards:
- BEP-2: supports transactions in BNB Chain, voting, and staking.
- BEP-20: supports smart contracts, enabling dApps and NFT creation.
Let’s see what is the BNB Smart Chain, how Binance developed and upgraded its blockchain network and token, and how it can be used today.
Difference between BNB and BSC
BNB is the utility token of Binance, issued in 2017, while BSC is the blockchain network with BNB as the native token, launched in 2020. Being the full-scale L1 network, BSC supports a lot of different tokens, coins, and NFTs, so there is a thriving ecosystem of dApps, NFT collections, and other assets on this chain. That’s what is BNB Smart Chain network.
Unlike it, BNB is the primary BSC token, which can be used for paying gas fees, staking, and different financial operations. Therefore, when one hears about BSC, it’s about Web3 development and blockchain tokens, while BNB is a specific token with a specific price.
What is the difference between BNB Smart Chain and BNB Beacon Chain
BNB Beacon Chain is essentially the first version of Binance Chain, launched in 2019 and used just for governance purposes. All primary differences with BSC are specified below.
| BNB Beacon Chain | BNB Smart Chain |
|---|---|
| Supports BEP-2 token format. | Supports BEP-20 token format. |
| Enables only transactions, staking, and voting. | Enables smart contracts and dApps programming. |
| Used for voting and governance. | Used for Web3 development. |
| Is an obsolete chain version | Is a currently operating chain version. |
In 2024, BNB Beacon Chain was discontinued, and all its features, including BEP-2 token support, were transferred to BSC, which, therefore, unites both functionalities nowadays.
What is BNB Smart Chain (BSC)?
BSC is the latest rebranded and innovated version of the Binance blockchain network, which is compatible with the Ethereum Virtual Machine and can be used for different purposes, including token creation, dApp development, staking, and fund transaction.
What network is the BNB Smart Chain?
BNB Smart Chain is a layer-1 blockchain (L1), compared to Arbitrum, Optimism, Polygon, and other EVM-compatible networks which are L2 and cannot work without connecting with the Ethereum mainnet. Unlike them, BSC works on its own, independently of anything happening on Ethereum. That’s what is a BNB Smart Chain: a robust blockchain network with extensive support for programming, dApp maintenance, and other crypto assets creation.
What coins are on the Binance Smart Chain?
With BNB as the native token, BSC has thousands of coins, tokens, and NFT collections on it, according to BSC Scan. Over 300 of them are currently publicly trading. It also has more than 5,000 dApps compatible with the chain, according to DappRadar.
New dApps, tokens, and NFT collections are issued nearly every week, but watch precisely to catch only the best ones, as many of them are worthless or even spam.
How to use BNB Smart Chain?
Due to its high transaction speed and low gas fees, BSC is a good choice for dApp users and developers, NFT creators, traders, and blockchain enthusiasts. Here is a short algorithm of how you can start, using GetBlock’s free shared BSC node.
- Create a BNB wallet address or import one if you already have one. The MetaMask app is a good option for that.
- Obtain an BSC RPC node to connect with the blockchain. You can register at GetBlock and get a free node endpoint in your dashboard.
- Add the BSC to MetaMask wallet using your endpoint URL, so you can proceed with smart contracts and transactions.
- Explore BSC dApps, NFTs, tokens, and other assets using apps like DefiLlama and DappRadar to understand what is happening on the chain now.
One can also see trending dApp examples below, to have an idea about how to use Binance Smart Chain. Look at BSC methods to explore and use the network’s capabilities programatically.
Source: BNB Chain
However, some have raised concerns about the network's centralization, pointing out its reliance on a limited number of validators. Therefore, BSC has two interconnected sides: it’s cheap and efficient due to its well-designed infrastructure, but it can also be seen as more centralized for the same reason.
Why is the Smart Chain unavailable?
Lastly, there were periods when the network show poor performance or even was unavailable, so users had problems with accessing their funds and assets. The best solution is using private BSC nodes, which are under steady maintenance and therefore can fix performance issues, ensuring stable communication between clients and the blockchain.
GetBlock is eager to support Web3 developers with its accessible BSC nodes, both shared and dedicated, depending on the scale of your blockchain project. For large enterprises, custom options are available, too. Sign up now, start with free nodes, and purchase new plans as you’re scaling up!
