Binance Smart Chain 101: @binance's lighting fast, EVM compatible chain
Here's your intro guide to #BSC
A thread 🧵👇
Here's your intro guide to #BSC
A thread 🧵👇
2. Binance smart chain (#BSC) is an Ethereum Virtual Machine (EVM) compatible chain that runs parallel to the Binance Chain (BC) that uses the Proof of Staked Authority (PoSA)
3. #BSC allows for the creation of smart contracts and adds a new staking mechanism for BNB.
BSC is EVM compatible, which means that all contracts deployed on ETH and other EVM compatible chains can be easily transferred to BSC
BSC is EVM compatible, which means that all contracts deployed on ETH and other EVM compatible chains can be easily transferred to BSC
4. The Binance chain was deployed to enable near instant trading.
However although BNB was very fast, it lacked smart contract programmability.
However although BNB was very fast, it lacked smart contract programmability.
5. ETH has been struggling with scaling. Gas has spiked and congestion happens a lot.
This has lead to massive rush to create alt chains that solve ETH's problems.
This has lead to massive rush to create alt chains that solve ETH's problems.
6. In order to escape the same fate as ETH, Binance created the #BSC as BC side chain.
BSC aides the Binance chain with smart contracts and allows for the migration of crypto assets.
BSC aides the Binance chain with smart contracts and allows for the migration of crypto assets.
7. #BSC uses a novel consensus mechanism known as the Proof of Staked Authority.
(PoSA). PoSA combines PoS and Proof of Authority (PoA). This enables BSC to be way more energy efficient than first gen chains.
(PoSA). PoSA combines PoS and Proof of Authority (PoA). This enables BSC to be way more energy efficient than first gen chains.
8. Newer gen chains are way more energy efficient, quashing skeptics’ qualms that crypto is bad for the environment.
#BSC’s gas fees are way lower than ETH's.
The avg gas fees is approx $0.35 usd.
#BSC’s gas fees are way lower than ETH's.
The avg gas fees is approx $0.35 usd.
10. At the moment, $BNB is trading at ~$397usd. 165M tokens are in circulation.
Every quarter, a portion of the supply is burnt. The goal is to bring the total supply to 100M, mirroring BTC’s deflationary nature.
Every quarter, a portion of the supply is burnt. The goal is to bring the total supply to 100M, mirroring BTC’s deflationary nature.
11. However, $BNB is highly centralized, with Binance controlling ~50% of the supply.
The result of this is that BNB moves with Binance.
With regulatory pressure coming from all over, this could mean bad news.
The result of this is that BNB moves with Binance.
With regulatory pressure coming from all over, this could mean bad news.
12. Staking $BNB gives a nice 13% APY.
However, it does require a minimum of 10,000 tokens.
However, it does require a minimum of 10,000 tokens.
13. The ecosystem on #BSC is popping, with over 2900 Dapps. B
SC is a very attractive smart contract platform thanks to its lightning speed and low transaction fees, along with the Binance backing (which has its pros and cons).
SC is a very attractive smart contract platform thanks to its lightning speed and low transaction fees, along with the Binance backing (which has its pros and cons).
14. This has lead to a boom in the DeFi, NFT and game ecosystems on BSC.
All of these reasons have led BSC to do very well over the last year and is now the 3rd largest chain by TVL.
All of these reasons have led BSC to do very well over the last year and is now the 3rd largest chain by TVL.
15. #BSC is an interesting chain. It is fast, low cost and EVM compatible. Which is great.
One of its biggest differentiators is that it is backed by Binance. This is both a good thing and a bad thing.
One of its biggest differentiators is that it is backed by Binance. This is both a good thing and a bad thing.
16. On one hand this means that BSC, has a lot of money and a lot of talent. It has deep pockets and can market BSC really well.
They've been forming a bunch of partnerships and bringing devs onboard to build.
They've been forming a bunch of partnerships and bringing devs onboard to build.
17. @twobitidiot talks about this in the @MessariCrypto crypto theses for 2022.
Institutions like Coinbase and Binance open the floodgates of crypto to the general public.
Binance is very well positioned to channel their name and rep to bring crypto to everyone.
Institutions like Coinbase and Binance open the floodgates of crypto to the general public.
Binance is very well positioned to channel their name and rep to bring crypto to everyone.
18. In that case, #BSC will serve as the gateway for mainstream adoption.
The two biggest things that make or break a chain are
1) can you bring devs onboard
2) can you distribute the app
Both of which #BSC and Binance have been successful at.
The two biggest things that make or break a chain are
1) can you bring devs onboard
2) can you distribute the app
Both of which #BSC and Binance have been successful at.
https://twitter.com/Cov_duk/status/1504793447818883082
19. However, on the flip side, #BSC is quite centralized. 50% of token supply is with Binance.
As #BSC moves with Binance, this means that if Binance is in trouble, so is #BSC. Regulatory pressure is coming from all sides. Which is bad news
As #BSC moves with Binance, this means that if Binance is in trouble, so is #BSC. Regulatory pressure is coming from all sides. Which is bad news
20. Centralization does go against the spirit of crypto, but it is inevitable.
The institutions are coming. There is going to be a significant element of centralization, at least for now.
Will be keeping a watch on #BSC
The institutions are coming. There is going to be a significant element of centralization, at least for now.
Will be keeping a watch on #BSC
21. Accounts to follow for #BSC insights:
@misscryptolog @DaJenus @kamBSCNews @news_of_bsc @SmartBSCNews @Raider_ElonPump @BNBCHAIN @bsc_daily @BscGemsDaily @SafeMoneyBSC_ @DailyLaunch_ @crypt0_stella
@ape280 @nftwhalerod @BSC_Nation @HideNotSlide
RT would mean a lot!
@misscryptolog @DaJenus @kamBSCNews @news_of_bsc @SmartBSCNews @Raider_ElonPump @BNBCHAIN @bsc_daily @BscGemsDaily @SafeMoneyBSC_ @DailyLaunch_ @crypt0_stella
@ape280 @nftwhalerod @BSC_Nation @HideNotSlide
RT would mean a lot!
22. Accounts to follow for #BSC insights:
@Rewkang @asiahodl @cz_binance @britpitbb @mskael68 @TTMullerio @bsc_Ambassador @Bsc100x_gems @CryptoBossReal @TylerDurdenBSC @bscstreet @bscmaximalist @Defi_Girl_ @cryptocycles @CryptoPunch5 @Crypt0_miku
RT would mean a lot!
@Rewkang @asiahodl @cz_binance @britpitbb @mskael68 @TTMullerio @bsc_Ambassador @Bsc100x_gems @CryptoBossReal @TylerDurdenBSC @bscstreet @bscmaximalist @Defi_Girl_ @cryptocycles @CryptoPunch5 @Crypt0_miku
RT would mean a lot!
23. Hope that was insightful, a retweet would mean a lot. I regularly write 101s, breakdowns and deep dives, follow to keep up.
Here are some of my past threads:
notion.so/covduk/4798517…
Here are some of my past threads:
notion.so/covduk/4798517…
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