Review: Binance Smart Chain 2021
Unlike traditional finance, DeFi works with blockchain networks to create decentralized applications. DeFi projects offer incredibly fast, reliable, cheap, user-friendly and safe DApps.
Binance Smart Chain is built to enhance speedy transactions and expand the features and capabilities of the DeFi market. Decentralized finance is credible because of the autonomy it offers its users to make transactions without external authority. Users are allowed to safely keep their cryptocurrency assets, buy and sell popular coins on the decentralized platform.
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Binance Smart Chain Overview
Binance Smart Chain is a blockchain protocol that offers a strong ecosystem for decentralized finance. It is a new protocol by Binance that runs together with Binance Chain. However, its function as a smart contract and its capability to run apps with the Ethereum Virtual Machine (EVM) differentiates it from Binance Chain. This protocol is a safe and fast decentralized exchange for digital assets. Its lower fee structures, high speed, advanced design make it appealing for developers.
After a successful takeoff in 2020, the BSC has established itself as one of the best blockchains protocols that have contributed immensely to DeFi projects and DApp development. It has shown the capacity of handling trading volumes within a short period of time.
Binance Smart Chain provides over 60 Decentralized Apps that offer decentralized finance solutions to users providing flexibility and usability. Although it runs in line with Binance Native, BSC is an independent protocol that runs autonomous technical and business functions. This protocol operates on a Proof-of-stake. Although it is different from Ethereum since it uses a delegated PoS model.
Binance Coin (BNB) contributes to network security, and users with this BSC native token can participate in community governance through voting. The delegated Proof-of-Stake allows the protocol to execute speedy transactions.
Platform Features
- Ethereum Friendly
The BSC protocol is compatible with Ethereum Virtual Machine (EVM). It offers smart contracts that provide Ethereum compatibility. This makes it easy for developers to build DEX and Decentralized Apps on the Binance Smart Chain network.
- Independent Protocol
BSC is an independent protocol although it interoperates with Binance Chain without any restraint. Due to this feature, it is easy to migrate cryptocurrency from Binance Chain to BSC.
It’s easy to transfer assets and Apps from one blockchain network to another. Its flexibility has made it appealing to both developers and users alike and its ability to operate with other networks makes it easier for users to operate on a vast ecosystem without interruptions. One of the key features of a DeFi platform is its ability to interoperate, and Binance Smart Chain has this ability.
- Low Transaction Fees
While it is important to pay a transaction fee for every transaction carried out on the blockchain, the blockchain charges high gas fees. Gas fees are crucial if you want your transactions to be processed successfully. Most DeFi applications execute lots of transactions, which requires transaction fees at every step. Before you choose a blockchain, ensure that you’ve considered the gas fees.
BSC and Ethereum are the two popular blockchains when it comes to DeFi projects. However, the transaction fee on BSC is cheaper. BSC unlike Ethereum makes use of a delegated PoS, this makes transaction processes faster and reduces the cost.
- Scalable
Scalability remains one of the biggest issues of blockchain transactions. However, Binance Smart Chain was built to ensure scalability. It ensures the fast execution of smart contracts for more scalable DApps. Just like Binance Chain, BSC is an effective blockchain that ensures speed. BSC handles smart contracts that are Ethereum compatible, unlike Binance Chain. It executes transactions with speed within a short period regardless of the number of transactions. This protocol provides faster and cheaper transactions than other decentralized platforms. Its interoperability makes transactions easier as developers can move from Ethereum with ease.
Blockchain transactions take a long time because every node must process the transaction. While it is important to confirm transactions to avoid risks, there can be unnecessary delays in transaction processing. Scalability is another factor to consider before choosing a blockchain. Ethereum is hampered by scalability challenges, which has caused congested networks and longer waiting times for transactions to complete.
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Decentralized Applications on BSC
Some of the popular DApps on Binance Smart Chain are Pancake Swap and UniSwap.
Pancake Swap
PancakeSwap and its native token (CAKE) hold a majority in BSC protocol. It is worth more than $5 billion USD. Compared to UniSwap, Pancake Swap continues to make headway in the blockchain network. It remains the largest DApp on BSC. It provides amazing features for users trading on it. It uses Automated Market Maker as its trading model, which allows users to trade against a liquidity pool. Liquidity providers, who deposit their funds are rewarded with tokens.
It offers the best farm yields in DeFi, a lottery for CAKE tokens. Its features have resulted in the rise of interest in Decentralized exchange. Also, users are allowed to earn passive income and build their portfolios by making stakes and yield farming. For users that have chosen to hold the native token, CAKE is given to them as a reward.
Trading Tokens in Pancakeswap using Trust Wallet App
The first step is to download the Trust Wallet App and fund your wallet. Then to exchange tokens, open your Trust Wallet app. Click on the “DApps” section. Then scroll down to PancakeSwap and click on it.
Connect your Trust Wallet and swap any token of your choice. To avoid losing funds to scammers, ensure that you are opening the right PancakeSwap link.
UniSwap
UniSwap is a decentralized exchange protocol that stimulates automated trading of decentralized finance (DeFi) tokens. It seeks to promote automated market maker trading and seeks to increase the number of users holding its token.
Swapping Tokens in Uniswap using Trust Wallet App
Follow the same format with PancakeSwap. Open the Trust wallet app, and click on the “DApps” section, scroll down to “Uniswap” and open it. Connect your wallet and swap any token of your choice
Fee Structure on Binance Smart Chain and Trust Wallet
To access Binance Smart Chain, you need to open a Binance account and get a cryptocurrency wallet. Trust Wallet is a trusted exchange wallet that supports several crypto tokens and over 53 blockchains. Trust Wallet is a trading platform that allows users to trade, receive, and purchase digital assets.
The fee structure of BSC is low and it executes transactions very quickly. It offers seamless interaction with several decentralized applications. While it seeks to speed transaction processes, it offers low transaction fees. The transaction fee ranges from $0.01 to $0.03 which is quite low compared to other blockchain protocols. Due to its Proof of Staked Authority, BSC has achieved a higher transaction speed and a lower fee.
Sometimes, blockchain fees can exceed $10 for every transaction, which makes it difficult for users to perform transactions. While Trust Wallet doesn’t charge most fees, if you are using Trust Wallet to make a payment with Bitcoin, interact with an Ethereum DApp, or send a CryptoKitty to a friend, you will incur (unavoidable) network fees.
The good thing about trading Binance Smart Chain with Trust Wallet is that it allows you to set your own network fees for Bitcoin and Ethereum. While you can set a higher network fee and for less urgent transactions a lower fee, Binance Smart Chain charges low fees. The network fee is unavoidable because a fixed fee will be charged based on the network you are working with. However, the amount ranges depending on the blockchain you are working on.
Security
BSC is built on a safe network. Its algorithm and network are very secure. The protocol has not been vulnerable to hacks or any external attacks. BSC protocol has created security teams and projects on the bounty program. The security teams are always available to supervise the system and ensure that any slight issue is resolved before it becomes threatening. They test BSC’s security system regularly. The DApps are secured. The BSC network verifies and audits projects. Although being an open-source network doesn’t always guarantee high security, BSC is secure. There’s the security of smart contracts and no zero-defect codes.
In order to avoid being vulnerable to risks, you must grow your knowledge, participate in community education and awareness hosted by the different BSC communities. While DEX is secured, users must be careful not to invest in risky projects by making critical research before making any decision.
Support
Binance Smart Chain has an active support team to help users whenever there are complications. Regardless of the type of complaints you have, you must contact the support team by visiting BSC’s official website. You can fill in your name, your complaint, and your email address.
PROs
- The platform is safe and accessible to all users
- The platform is scalable and the transaction process is speedy. It ensures the fast execution of smart contracts for more scalable DApps. BSC is an effective blockchain that ensures speed.
- Lower transaction fees: blockchain fees are low and affordable. The low cost of transactions and on-chain operations is definitely the decisive factor that drives developers and users to migrate from Ethereum and other smart blockchains to the BSC.
- Very easy user interface
- Customer Support: Binance Smart Chain has a reliable customer support team dedicated to customers to solve issues.
- Smart contracts
Cons
- Malicious system: individual projects are vulnerable to scams and threats. Security needs to be more enhanced for a seamless trading experience.
