There are thousands of blockchains worldwide. This article explores the various factors that make the BNB Chain stand out among its competitors.
There are over a thousand blockchains with at least four types of networks worldwide. For various reasons, developers and businesses deploy their Decentralized Finance (DeFi) protocols on different blockchains like Ethereum, Avalanche, Solana, BNB Chain, etc.
Developers optimize each blockchain to solve the biggest trilemma for a DeFi ecosystem – balancing between decentralization, scalability, and security. Most blockchains model after the “Grandfather of DeFi,” the Ethereum blockchain that pioneered smart contracts and Layer 2 scaling. Newer blockchains modeled after the Ethereum blockchain have tweaked their network to improve its speed, scalability, and costs.
In this article, we will explore how the BNB Chain utilizes the best aspects of other blockchains, including Ethereum, to render its network to be blazingly fast, scalable, safe, cheap, and easy to use. This should give our readers a better understanding of why developers and businesses want to deploy their DeFi protocols on the BNB chain compared to other popular blockchains like Avalanche, Solana, and Ethereum.
Introduction of BNB Chain
BNB Chain is the current umbrella network of Binance’s layer-1 blockchain, which came to be after several improvements, integrations, and mergers.
Creation of Binance Chain
Binance’s humble beginnings did not first start with a blockchain. They initially created the BNB token as an ERC-20 token launched on the Ethereum blockchain in 2017. Binance then created Binance Chain in 2019 as a decentralized exchange to facilitate the transfer of the ERC-20 BNB tokens over to Binance Chain as a BEP-2 token. Holders of the BEP-2 BNB tokens would use it as a governance token for staking, voting, and paying for gas for transactions. Holders of the BEP-2 tokens can only use them on Binance Chain and nowhere else.
