What is the Binance Smart Chain and BNB Token
SUMMARY KEYWORDS
crypto, chain, smart, token, blockchain, episode, network, users, run, smart contract, fees, build, stake, ethereum blockchain, native, platform, decentralized applications, podcast, exchange, model
00:00
Welcome to the New To Crypto Podcast designed to guide you through the crypto landscape with pinpoint accuracy created for the new and intermediate crypto investor. Join your host crypto travels, Michael as he takes you through the different facets of getting started and succeeding in your crypto journey. New To Crypto Podcast brings you new episodes daily Monday through Friday with surprise bonus episodes sometimes on the weekend. Let me ask you, are you new to crypto don’t know where to start? Are you more experienced but have questions? Then you’re in the right place. This podcast is designed for you coming at you from the Trading Center and the lifestyle design studio. Here’s your host Crypto Travels Michael.
00:53
What is the Binance Smart Chain and BNB token by Binance smart chain is also known as BSC the Binance smart chain is a blockchain network built for running smart contract based applications. BSC runs in parallel with Binance is native Binance chain, also known as BC, which allows users to get the benefits of both the high transaction capacity of the binance chain and the smart contract functionality of the binance Smart chain.
01:31
So let’s start by talking about Binance first. Binance is one of the largest crypto exchanges in the world. They have binance.us for us customers based in the States. They have Binance calm for those and other countries. They also have other versions of Binance for example Binance Singapore. So Binance being a large crypto exchange, wanted their own blockchain ecosystem.
01:57
So now they have the Binance chain and the Binance smart chain. While they run in parallel Binance smart chain is a standalone blockchain. This means that even if the binance chain stops operating binance Smart chain will continue to run its technical, and business functions.
02:21
Also, the finance smart chain also implements the ethereum virtual machine, also known as EVM, which allows it to run Ethereum based applications. The platform’s goal is to enable developers to build decentralized applications or daps. And help users manage their digital assets cross chain, both blockchains operate side by side. smart contracts, which are aetherium compatible, are supported by the Binance smart chain. Through this feature developers can build or migrate dapps tools and other ecosystem components on the Binance smart chain network,
03:07
I personally really liked the speed and low cost of the fees. The gas fees on this network are really low. And anytime I use the Binance smart chain, it’s quick, and the fees are low. So I really like this part. So what is the BNB token. It’s the Binance native token, and it can be used for staking to pay gas fees on the network traders and investors buy and hold it or buy and sell it. The platform runs on a proof of stake consensus model, specifically it’s a proof of stake authority, the Binance smart chain’s native token Binance coin or BNB.
03:46
Most people just call it BNB. It can be staked to contribute to network security and vote on community governance protocol. Its POS model also enables it to process transactions faster, putting it above networks that still implement full proof of work systems. So the Binance chain and the Binance smart chain can freely communicate with each other without friction. Despite Binance smart chain not being a layer two solution. It is an independent blockchain parallel to binance chain as I mentioned previously, so this makes it seamless for users to move their cryptocurrencies between the Binance chain and the Binance Smart chain.
04:29
I’ve configured MetaMask wallet to work with crypto assets on the Binance marching, it takes a little patience to set up and it’s a little bit more involved than just installing and opening meta mask and I share a resource with instructions on how to do this on our site for today’s episode. Trust wallet is another one I use to hold BNB tokens. Some more data about the bnb coin is that the Binance coin initially ran on the Ethereum blockchain, with ERC 20 standard, but has since become a native coin of the Binance Chain, so Binance or BNB has a maximum amount of 200 million BNB tokens. Another top exchange, besides the Binance exchange, where the BNB token is exchanged and used heavily is PancakeSwap. I have an upcoming episode all about PancakeSwap, and you’ll definitely not want to miss that.
05:22
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