Binance Chain and Binance Smart Chain are two different blockchains. This article will discuss Binance Chain, Binance Smart Chain, their consensus protocols, and their features. Finally, we will also see the difference between Binance Chain and Binance Smart Chain. Let’s talk about the Basic difference between the BNB chain vs. BSC
Binance Chain
What is the Binance chain
Binance Chain is a Blockchain developed by Binance with the participation of the Binancians community. The community aims to provide a marketplace to issue and exchange digital assets in a decentralized manner. The native token for Binance Chain is BNB.
Binance Chain can provide decentralized trading opportunities, and Binance DEX is the first Dapp to run on it. Binance DEX, Binance’s decentralized exchange, is developed on top of the Binance Chain. It allows users to exchange crypto assets directly with each other. It is not related to any third party. As a result, transaction fees are also significantly less.
What Can You Do With Binance Chain?
With Binance chain, you could:
- Send and receive Binance coin, BNB.
- Issuance of new tokens according to the BEP-2. standard
- Mint/write, freeze/unfreeze, lock/unlock tokens
- Create trading pairs between two different tokens
- Buy or sell assets through on-chain generated trading pairs. Binance DEX is a decentralized exchange developed on top of the Binance Chain. Binance DEX allows users to exchange crypto assets directly with each other.
- Binance Chain is not compatible with EVM. Therefore, it does not allow developers to build their Dapps using smart contracts. For this purpose, we have Binance Smart Binance.
Binance Smart Binance
Binance Smart Chain is a standalone blockchain that runs in parallel with Binance Chain. Binance Smart Chain offers EVM-compatible programmability and native cross-chain communication with Binance Chain.
Compatible with EVM (EVM-Ethereum Virtual Machine): allows BSC to develop and run Ethereum-based applications. It also supports all existing Ethereum tools, faster completion, and cheaper transaction fees. Here, finality is the point at which the transferred funds become lawfully owned by the recipient.
However, Binance Smart Chain is not an updated version of Binance Chain, nor is the original Binance Chain-based two-tier platform. It’s an entirely separate, standalone blockchain that can continue even when Binance Chain is offline, but the last two are designed to work side-by-side.
Binance Smart Chain is also known to have a Dual Chain architecture. It empowers users to build decentralized applications and digital assets on one blockchain and take advantage of fast transactions to exchange on the other (Binance Chain).
The fundamental difference between BNB chain vs. BSC
- Binance Chain is geared towards fast transactions, while Binance Smart Chain is an innovation of Binance Chain that supports the development and operation of Dapps.
- Binance Chain uses the DPoS (Proof of Stake) consensus protocol, while Binance Smart Chain uses the PoSA (Proof of Authorization) consensus protocol.
- BEP-2 denotes Binance Chain’s token standard, and Binance Smart Chain’s token standard is characterized by BEP-20. Binance Chain BEP-2 tokens can also be swapped into BEP-20 tokens for BSC.
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