BSC (Binance Smart Chain) is a game changer in DeFi & Crypto
If you are in the crypto space for more than two years then I'm sure you are aware of the situation when the transaction fee was crazy with ethereum and because of that a lot of people were not OK to transact. Even though I have been through similar situations many times when my transaction fee was much more than the overall value of the transaction because of that I did not perform the transaction which is actually not right because this is not the ideal scenario. The majority of people in the crypto community believe that transaction fee should not be high and being only a few dollars makes sense but it does not make sense to pay a few $100 further transaction fee since it's not adding any value except a bigger reward to the people who mine or validate the transaction.
Binance introduced BSC (Binance smart chain) which is a smart under kind of game changer innovation that has drastically reduced the transaction fee as compared to ethereum and it has played a significant role to revolutionise the decentralizing finance which is called as DeFi in short.
Binance Smart Chain provides a full-featured decentralized development environment built on new Blockchain technology training. In addition, Binance Chain has been constructed to support cross-chain compatibility, ensuring users get the most out of both chains
Binance smart chain is not the same chain that they have for BNB instead its a new chain and its highly optimized and compatible with ethereum dApps. Ideally projects upgrade their existing chain to make it smart but Binance did something different and they launched a new chain called binance smart chain which is a kind of good competitor for ethereum in terms of the scalability and compatibility with their decent lies applications. After the launch of BSC the use case of the BNB coin improved because DeFi projects got a chain that is not just smart in terms of scalability but also cost-effective since the transaction cost is too low as compared to an ethereum transaction fee.
This was the reason why most of the decent life finance projects moved all started with the bananas smart chain and they never had any issue with the functionality and security. It was the time when transaction fee was one of the biggest problem statements and this was solved by the binance exchange through bringing this new innovation and that is something went very well because of each lot of projects and you just got a place where they can transact without worrying about the fee.
Even leofinance built their first ever defi platform called cubdefi on the BSC chain and with this defi platform I also started my investment in this segment because this was a reliable name on the hive network and keeping the transaction fee was another reason for the community to be part of the project.
Binance smart chain works on two protocols. One is PoS (Proof-of-Stake) and another is PoA (Proof-of-Authority) and its not like the proof of work that ethereum follows because and this is also one of the reasons why its not good for the environment as it consumes energy and resources to keep it running. BSC combined both PoS and PoA and even now ethereum is moving to PoS which means they have changed the game and this is going to b the next method for most of the projects to follow.
Not everyone is so technical in the cryptocurrency world but what people expect is that things should be easy to use and also it made things better which this chain has done because now we get a lot of options with decentralized financing on the binance chain and either user I have also felt the change which I experienced after this because now I can transact without any hassle or anybody about the charges or security. Since the launch of BSC, BNB has grown a lot and its expected that it will grow even further as so many projects are built on BSC and many more to come but for transactions, BNB is the only coin that will be used. This increases the demand and utility of the coin and surely it has a bright future. I would have never joined DeFi is there was no BSC so now since I joined and the reason is the Binance smart chain that made it easily accessible for the crypto community
Thank you.
Posted Using LeoFinance Beta
