Binance Chain (BC) is a blockchain platform launched by Binance, one of the world’s leading cryptocurrency exchanges. The primary purpose of Binance Chain is to facilitate fast, decentralized trading. At its core, Binance Chain was designed with simplicity in mind, focusing on trading and transferring blockchain assets.
Architecture and Functionality
Binance Chain operates on a consensus model known as Tendermint BFT (Byzantine Fault Tolerance). This consensus mechanism allows for rapid transaction times, with a block time of approximately one second. This speed makes Binance Chain an attractive option for traders looking for quick transaction times.
One of the key features of Binance Chain is its support for Binance Coin (BNB). BNB, initially an ERC-20 token on the Ethereum network, was migrated to Binance Chain upon its launch and is used for various purposes within the Binance ecosystem, including paying for transaction fees on Binance Chain and Binance DEX (Decentralized Exchange).
However, Binance Chain has its limitations. It does not support smart contracts, which limits its functionality compared to other blockchains like Ethereum. This lack of support for smart contracts led to the creation of Binance Smart Chain, a parallel blockchain that operates alongside Binance Chain.