The development team of Binance Chain (BCDC) has proposed the idea of a blockchain parallel to the current one to support a "friendly" function of Smart Contract.
This is the so-called Binance Smart Chain, which will complement the one currently used for the DEX, in order to preserve the high performance of the blockchain.
BCDC has also released a whitepaper detailing this proposal, revealing that the Binance Smart Chain will bring the programming and interoperability capabilities of the Ethereum Virtual Machine (EVM) into Binance Chain.
Binance Smart Chain will therefore be an autonomous blockchain, based on the Proof of authority wagered, and EVM compatible to support all existing tools on Ethereum. In this way, all EVM compatible protocols and smart contacts will be compatible with this new blockchain.
It also promises faster execution times and lower transaction fees.
It will be based on a system of 21 validators that use PoSA as a consensus algorithm, offering faster block confirmation times and lower transaction fees.
The native BNB token will act as a gas for smart contract execution, as well as a token for stakeout.
The Binance Chain development community said:
“At the heart of the Binance Chain is a high-performance correspondence engine based on distributed consensus that aims to replicate the <1 second business efficiency of today's centralized exchanges. Unfortunately, the Binance Chain hasn't given developers much freedom to build decentralized applications (dApps) in addition to a Turing-complete (ish) virtual machine at the application layer.
Today, the Binance Chain development team proposes the idea of a parallel blockchain from the current Binance chain to retain the high performance of the native DEX blockchain while supporting a friendly Smart Contract function.
This dual-chain architecture will be ideal for users to take advantage of fast trade on one side (Binance Chain) and create their decentralized applications with smart contracts on the other side (Binance Smart Chain). BNB holders who are interested in betting BNB can also support the development of Binance Smart Chain and earn rewards. In the long term, we look forward to continuing to work closely with the blockchain community to strengthen our digital asset infrastructure and provide the community with the best platforms for the creation, circulation and exchange of digital assets. ”