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Crystal Explainer Series: BNB / BSC Blockchain

by the Crystal marketing team

August 30, 2022

BSC rebranded to BNB Smart Chain – What is the new brand promise? 

Binance and BNB started in 2017. Binance Smart Chain (BSC) was introduced in 2020, and as Binance grew, so did Binance Smart Chain. BSC originated during the DeFi revolution, as the public showed increased interest in alternative financial solutions and use cases powered by blockchain. Today, both Binance and BSC stay linked by BNB. 

BNB is more than Binance. BNB has its ecosystem, together with BSC. 

What is BNB Smart Chain (BSC)?   

BNB Smart Chain is a blockchain network launched by the cryptocurrency exchange Binance, BNB Smart Chain (BSC), and previously Binance Smart Chain. BNB Smart Chain supports smart contracts and decentralized applications (DApps). BSC runs alongside the BNB Chain, previously Binance Chain.  

BNB Beacon Chain, previously Binance Chain  

BSC has rebranded to BNB Chain, which stands for Build and Build, in order to attract attention to Binance’s BNB token, the governance token for the protocol. Binance’s layer-1 blockchain has merged the two to form the BNB Chain.  

BNB Smart Chain  

Binance has pledged over $1 billion to support the BSC ecosystem as it competes with the Ethereum network and another layer one blockchains. BSC has been criticized for being too centralized and for all the rug pulls happening on its ecosystem.  

Binance Coin (BNB)  

Binance coin was initially running on the Ethereum blockchain with ERC 20 standard. Still, it has now become the native coin of the Binance chain. It was founded during an initial coin offering (ICO) in July 2017. It has a maximum of 200 million BNB tokens. Its angel investors got 10%, or 20 million, BNB tokens, 40%, or 80 million tokens went to the founding team, while the remaining 50%, or 100 million, went to the various participants through the ICO process.  

BEP20 token standard  

BEP-20 is a standard for tokens that extends ERC-20, the most common Ethereum token standard. This standard defines how tokens can be spent, who can consume them, and other rules for their use. ERC20 tokens are based on the Ethereum blockchain, BEP20 tokens are built on BSC, and TRC20 tokens are based on the TRON blockchain.  

Smart contracts  

Smart contracts allow for trusted transactions and agreements to be executed among completely anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.  

Proof-of-stake (PoS) consensus – BSC  

Proof of Staked Authority (PoSA) Consensus mechanism – BSC uses the PoSA mechanism to achieve consensus within the network. PoSA, as the network applies, combines Delegated Proof of stake (DPoS) and Proof of Authority (PoA). The former has been previously implemented successfully in blockchains such as EOS  

On-chain governance mechanisms  

On-chain governance is a management and implementation system for implementing changes to cryptocurrency blockchains. This type of governance & rules are encoded into the blockchain protocol. Developers may propose changes through code updates, and each node votes whether to accept or reject the proposed change.  

Improved scaling solutions  

The Autobahn Network will open a new world of possibilities by being the first Layer 2 Optimistic Rollup for the BNB Smart Chain (formerly Binance Smart Chain). It will minimize fees and provide lightning-fast transaction speed while benefiting from the BNB Smart Chain, which underlies it.   

Expansion of the BSC validator set, from 21 to 41 (with 20 validators functioning as candidate block producers)  

The BNB Chain increased the number of validators on BSC to 41 from 21, said Samy Karim, BNB Chain ecosystem coordinator, in the press release. The 20 additional validators will function as candidate block producers, Karim said. By expanding validators and improving scaling, BNB Chain will “embrace” large-scale applications in GameFi, SocialFi, and the metaverse, Karim added. The metaverse refers to an immersive digital world created by the combination of virtual reality and augmented reality. With the concept of MetaFi (“Meta” for metadata and “Fi” for DeFi), the BNB Chain community aims to build the infrastructure that powers the world’s virtual economy.) 

Crystal currently supports over 900 tokens on BSC Chain and has expanded support of ETH token transfers in the monitor tool by adding 500 new ERC-20 tokens, so now 4100+ tokens are supported on the platform. 

This feature allows cryptocurrency compliance officers to check more ERC-20 token transfers and attain a more detailed profile of a particular customer. 

These regular updates demonstrate Crystal’s diligence in enhancing the platform and making it user-friendly for the customers. 

Contact the team at [email protected] to learn more about our solutions and our latest features. We are happy to assist you! 

Schedule a training session  

Crystal is the world-leading all-in-one blockchain analytics tool for crypto AML (Anti Money Laundering) compliance, providing real-time blockchain analytics and crypto transaction monitoring for thousands of cryptocurrencies.  

Crystal Blockchain works globally with customers in the digital asset industry, banking, and FI (Financial institutions) sectors. We help streamline their Know Your Transaction (KYT) and Anti-Money Laundering (AML) procedures for meeting international compliance standards. 

Available as a free demo version, SaaS, API, and for on-premises installation. Engineered by Bitfury. 

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