Binance is a blockchain-based platform serving international crypto users. It was launched in 2017 as a place to exchange crypto-related assets. However, Binance has since grown into a much bigger and more popular platform. Its proprietary technologies are considered cutting edge within the crypto space. BNB Chain launched its first blockchain in 2019. Since then, it has garnered a reputation for high perception. Its many services are covered in this guide.
What is BNB Chain (Binance Smart Chain)?
BNB Chain was previously known as Binance Smart Chain. It is a highly functional and practical blockchain for both businesses and individual crypto users. The blockchain offers independent services and is not associated with any Layer 2 networks or scaling solutions. BNB Chain supports many different dapp or decentralized application projects. Some of the most notable on this chain are PancakeSwap and Binance DEX. By using the Ethereum Virtual Machine, or EVM, dapp developers can use applications such as MetaMask. BNB Chain’s smart contracts are also powerful and useful for several decentralized apps. BNB Chain is known for its affordable fees; the maximum fee charged is 0.1%. Additionally, the blockchain offers fast finality times for blocks, which has caused higher demand from customers. BNB was created to support projects related to blockchain technology. Its chain supports BEP2, BEP8 and ERC-20 tokens and encourages cross-chain interoperability. Here are some examples ofBNB crypto tokens (previously Binance Smart Chain tokens) are Dogecoin (DOGE), Polkadot (DOT), Zcash (ZEC), etc.
How does BNB staking work
Staking is one of the most common methods of generating passive income. It involves holding tokens on a network instead of sending them to a wallet. This often leads to receiving monetary rewards. Binance’s version of BNB Chain is called Binance Chain, formerly known as the Binance Coin. It uses a combination of Proof-of-Stake and Proof-of-Authority referred to as Proof-of-Staked-Authority. To become a validator on the blockchain, users must stake BNB — the blockchain’s utility token — along with a high reputation. Any user can become a validator in this way. Any validator who add their block to the chain earns transaction fees from the added block. BNB Staking Rewards sites provide an estimate of the rewards you’d receive through staking the cryptocurrency.
BNB staking allows users to participate in the platform’s governance processes, further securing the platform.