The evolution of the Binance Smart Chain: An introduction to the BNB Chain

The cryptocurrency BNB, formerly known as Binance Coin, has been renamed Build and Build, and the blockchain ecosystem, formerly known as Binance Smart Chain, has been renamed BNB Chain. The statement was made a week after Changpeng "CZ" Zhao, CEO of Binance, tweeted that BNB stood for "Build'N Build," which means to build the community and let it grow.
Aug 31, 2022 4:12 PM

The BNB Chain has replaced the Binance Smart Chain (BSC). Recently, the Binance Chain and the Binance Smart Chain merged to form the BNB Chain, according to the layer-1 blockchain of cryptocurrency exchange Binance called BSC. The layer-1 or underlying blockchain for Binance is being relaunched as part of a strategy to connect it to the protocol's governance token, BNB, in order to strengthen and further decentralization.

Because BSC bears the corporate name, people frequently mistake it for being a part of Binance, according to Changpeng Zhao, CEO of Binance. He continued, "We've worked hard to decentralize it and hope to make BNB transcend beyond Binance.

In order to sustain its continuous and escalating competition with the Ethereum network and other layer-1 blockchain systems, Binance has so far committed more over $1 billion to the BSC ecosystem. The initiative aims to allay complaints that BSC is excessively centralized.

For the BSC ecosystem, which supports a number of industries including GameFi and the non-fungible token (NFT) market, Binance intends to promote BNB as a token. That ought to make BNB crucial to the eventual growth of what Binance refers to as "MetaFi."

Key Takeaways:

  • The blockchain ecosystem known as Binance Smart Chain has been renamed to BNB Chain, according to Binance.
  • Formerly known as Binance Coin, the token BNB is now known as Build and Build.
  • More than $1 billion has been spent by Binance to support the BSC ecosystem.

What is the BNB Chain?

Chanpeng Zhao, CEO of Binance, stated in a tweet that "BNB" stands for "Create 'N Build" and means "Build the community, and let the community build, build, 'n build."

The recently released BNB Chain consists of the BNB Smart Chain, which is still compatible with the Ethereum Virtual Machine (EVM), and the BNB Beacon Chain for BNB Chain governance (i.e., staking and voting).

The BNB Chain is a development in Binance's recent MetaFi initiatives by enhancing interoperability and creating the foundational infrastructure of the "world's parallel virtual environment."

Users are assured by The BNB Chain that it will be permissionless, decentralized, open, multichain, for creators and inventors, and bigger than binance.

What is Binance Smart Chain?

Binance Chain is the name of the first blockchain that Binance created. But there were certain limitations on its programability. Binance Smart Chain was created as a solution to these problems. Applications based on smart contracts can be used on a blockchain network called Binance Smart Chain.

Users can enjoy the best of both worlds because BSC operates concurrently with Binance's original Binance Chain, which has a high transaction throughput. Additionally, BSC integrated the Ethereum Virtual Machine, allowing it to run Ethereum-based applications.

The platform was designed to let users manage their cross-chain digital assets in a high-capacity, low-latency manner and to enable developers to build decentralized apps (DApps). As has already mentioned, BSC later adopted the BNB chain's name. 

Binance takes its name off the blockchain.

The cryptocurrency BNB, formerly known as Binance Coin, has been renamed Build and Build, and the blockchain ecosystem, formerly known as Binance Smart Chain, has been renamed BNB Chain. The statement was made a week after Changpeng "CZ" Zhao, CEO of Binance, tweeted that BNB stood for "Build'N Build," which means to build the community and let it grow.

BNB Chain will have "greater opportunities and freedom to seek innovations" as a result of the removal of the Binance moniker, the business claimed. Additionally, BNB Chain will develop into a multi-chain. In addition to the name change, Binance has created a brand-new idea called MetaFi, which combines the terms meta (information) and Fi (DeFi). The BNB Chain group is attempting to provide infrastructure for numerous projects, such as GameFi, SocialFi, Web3, and NFTs, under one roof with MetaFi.

The Binance Smart Chain's development

BSC was introduced in 2018, three years after Binance and BNB were founded. BSC grew in popularity along with Binance. BSC was established at the same time that the DeFi movement was growing. The use cases for blockchain technology evolved over time along with the public's interest in nontraditional financial solutions.

The BNB token has continuously changed since its launch, according to Binance. It was first developed in 2017 as an ERC-20 token on the Ethereum network. It shifted to the Binance Chain in 2019 and supported the development of the BSC network, which was formally introduced in September 2020.

Binance now views BNB as the token for a larger ecosystem, encompassing the Binance Chain and BSC, as a result of the token's rise on BSC. The crypto titan is making this step as part of its aim to expand outside Binance. The BNB Chain's current token is BNB.

BNB vs. Binance Smart Chain

Under the newly renamed BNB Chain umbrella, the Binance Chain, where staking and voting take place (BNB Chain Governance), has changed its name to BNB Beacon Chain. The Binance Smart Chain, also referred to as BSC, is a multi-blockchain platform that supports the EVM. Its name is simply BNB Smart Chain.

Nevertheless, the BNB chain also features a dynamic environment apart from that of BSC. BNB is designed with the premise that someday, everyone will possess it, hence it needs to be made available. Additionally, BNB (formerly known as Binance Coin) serves as a governance token and is employed to cover gas costs on the BNB chain.

Most importantly, BNB Chain is still a decentralized, open-sourced, and community-driven ecosystem whose health depends on the support of its developers, user community, validators, and delegators. BNB Chain will also support expansive applications like SocialFi, GameFi, and the Metaverse.

The BNB ecosystem and the BNB token

The BNB token currently stands for "Build and Build" and is the native coin of both the BNB Beacon Chain and the BNB Smart Chain as well as the cryptocurrency that powers the BNB Chain ecosystem. In addition to powering transactions on the BNB Chain, it also functions as a governance token, much to gas on Ethereum.

Participation in the decentralized on-chain governance of the BNB Chain requires ownership of BNB. Additional improvements to BNB, including technical changes to further realize decentralization, have also been revealed along with the rebranding. The users, developers, and projects of the community are anticipated to gain from such upgrades.

The following are some of the updates Binance listed:

  • the development of BNB auto-burn, a new, objectively provable protocol
  • The v1.1.5. Upgraded Bruno hard fork that accelerated BNB burn rate

BNB can be traded like any other cryptocurrency and used in a variety of apps and use cases, such as lowering trading fees on the Binance exchange, covering transaction fees incurred via the BNB Chain, and making online and offline purchases of products and services. The native BNB token, which drives the BEP-20 and BEP-2 token standards, facilitates interoperability through the dual-chain design of the BNB Chain ecosystem. But what sets one apart from the other?

The token standard for the BNB Beacon Chain is BEP-2, but the standard for BSC tokens is BEP-20. Since they are quite similar in many ways, the BEP-20 token standard and Ethereum's ERC-20 token are frequently contrasted.

In conclusion, the BNB Smart Chain employs the BEP-20 token standard to create cryptocurrency tokens, whereas the BNB Beacon Chain uses the BEP-2 standard.