Binance Chain, the native blockchain for the BINANCE Coin currency was launched in April 2019. The goal of Binance Chain was to facilitate decentralised trading. The largest application on this blockchain is Binance DEX, a global decentralised exchange. Since this blockchain is not very flexible and adapted for smart contracts, it was necessary to come up with something that would meet this challenge. This is how Binance Smart Chain was created.
The purpose of this blockchain is to leave high bandwidth for the Binance Chain while introducing smart contracts into the ecosystem. Technically, the two blockchains work together and are very similar in terms of architecture. Because BSC is compatible with the Ethereum Virtual Machine it was launched with support for Ethereum tools and DApps broadly speaking. So in a way BSC makes it easier for developers to port their projects from the Ethereum network. For us users, it's also a great thing. We can easily set up a connection to BSC through MetaMask.
The Binance Smart Chain block time is about 3 seconds. It runs on the consensus PoSA, Proof of Staked Authority. Users staked BNB to become validators. They receive transaction fees if they succeed in proposing a valid block. Because BNB is not an inflation token, there is no block grant for new Binance Coin.
Due to the fast block time and flexibility of the blockchain, many DeFi applications have been developed. One of the biggest is PancakeSwap, which allows us to exchange tokens and invest in tokens on a Yield Farming basis. BSC greatly extends the capabilities of the original Binance Chain and adds a number of different protocols for efficiency.
