BNB Chain

A blockchain platform developed by Binance, designed for fast transactions, low fees, and Ethereum compatibility.

Originally launched as Binance Smart Chain (BSC) in 2020 and rebranded to BNB Chain in 2022, it runs parallel to the original Binance Chain. BNB Chain is EVM-compatible, meaning developers can easily port Ethereum applications with minimal modifications.

Key Features

• EVM Compatible: Supports Ethereum smart contracts and tools
• Low Fees: Transaction costs typically under $1
• Fast Block Time: 3-second block times for quick confirmations
• Native Currency (BNB): Used for transaction fees and staking

Why It Matters

BNB Chain has become one of the largest blockchain ecosystems for DeFi and dApps, offering an alternative to Ethereum with significantly lower transaction costs. Many stablecoins (USDT, USDC, BUSD) are issued on BNB Chain.

It's particularly popular in regions where high Ethereum gas fees are prohibitive, and for applications requiring frequent transactions like gaming and NFT trading.

Trade-offs

BNB Chain achieves its speed and low costs through a more centralized validator structure (21 validators) compared to Ethereum or Bitcoin, which has led to criticism about its decentralization and censorship resistance.