Binance Smart Chain is the home to BNB currency and is optimized for ultra-fast trading. This exchange has witnessed almost $27 billion coming through its door in 2019. The Binance Chain was launched by ‘Binance’ by the end of April, and it executed the native token BNB (Binance Coin) on the Ethereum Blockchain. It also launched the decentralized exchange to make ‘Binance Smart Chain’ one of the powerful platforms to help new tokens and ICOs. This Smart Chain helps in building high performing decentralized applications.
The Binance Smart Chain is now live on the main net, which will help activate the parallel Blockchain to Binance Chain. It will further help with the staking mechanism and assists in the creation of the Smart Contracts. Interested users can become the ‘validator’ of the new Blockchain with BNBs stakes. An interesting thing about the BSC is that it can run independently even if Binance Chain went offline. Let’s now see how you can use the Binance Smart Chain for trading.
Top Ways to Use Binance Smart Chain
With BNB Stacking, EVM compatibility, higher performance, less transaction fee, and much more, BSC is thriving in the present cryptocurrency world manifold. Read on to use Binance Smart Chain smartly and seamlessly.
- Use of Consensus: The BSC achieves the ‘3-second clock time’ using the ‘Proof of Stake consensus algorithm.’ It uses the Proof of Stake Authority for staking the BNB to be made Binance Smart Chain’s validators. The validators, after proposing the right ‘block,’ will receive the transaction fees. However, if any coin burns, then the supply of BNB coins will decrease over time.
- Using MetaMask: You can use MetaMask to start with your Binance Smart Chain in just 60 seconds. First, download the ‘MetaMask.’ Now, complete the main setup by saving your backup phrases. After this, click the leading Ethereum network on the top. Now, click on ‘custom RPC’ and then copy and paste each line like ‘Binance Smart Chain’ in each block. The last step is to click ‘Save,’ and your BSC wallet will be active.
- Role of Cross-Chain Compatibility: The Binance Smart Chain works as the ‘cross-chain compatibility’ to the Binance Chain. It uses the dual chain system to transfer the asset from one Blockchain to another. As these two Blockchains run parallel, so you can enjoy trading on one platform and built decentralized apps on the BSC platform. The BEP-20 tokens used here possess the same functions as that of Ethereum Blockchain.
- Use of the Decentralized Finance: You can use decentralized finance on the Binance Smart Chain as different digital assets exist on the Binance Chain as the ‘Peggy Coins’. Like, users can lock up to 5 BTC to receive 5BTCB on the Binance Chain. While trading, make sure you can track the price of BTC and BTCB closely. This way, you can easily trade other cryptocurrencies over the Binance Smart Chain.
Binance Smart Chain provides a fair amount of flexibility to the transfer and trading of multiple digital assets. It bridges the gap between various Blockchains. Being compatible with EVM, it becomes an ideal platform for developers to develop decentralized applications.