Binance Smart Chain (BNB)

What is Binance Smart Chain (BNB)?

Binance Smart Chain (BNB) is the native token of Binance Smart Chain (BSC), a high-performance blockchain platform built by Binance, one of the largest cryptocurrency exchanges in the world. The main purpose of Binance Smart Chain is to provide a faster and cheaper alternative to the Ethereum blockchain.

Binance Smart Chain uses a dual-chain architecture that consists of both a smart contract chain and a high-throughput blockchain. This design enables developers to build decentralized applications (DApps) and execute smart contracts more efficiently and cost-effectively than on the Ethereum blockchain.

How does Binance Smart Chain work?

BNB is used as gas fees on the Binance Smart Chain network. Just like Ethereum's gas fees, users pay BNB to execute smart contracts and transactions on the Binance Smart Chain. However, the gas fees on the Binance Smart Chain are significantly lower than those on Ethereum, making it more cost-effective for users.

Moreover, Binance Smart Chain supports cross-chain interoperability, which means that tokens from other blockchains can be bridged to the Binance Smart Chain network. This allows users to swap tokens between different blockchains seamlessly.

Conclusion

Binance Smart Chain is a popular cryptocurrency that powers the Binance Smart Chain network. It offers users a faster and cheaper alternative to Ethereum and supports a wide range of decentralized applications. By using BNB to pay for transactions on the Binance Smart Chain network, users can benefit from lower fees and seamless interoperability with other blockchains.