🧊Blockchain

BSC Chain and update other chains later

What is Binance Smart Chain?

Since it came on the scene in 2017, Binance has gone from a crypto exchange with an ERC-20 asset to an ecosystem of components housed under the Binance brand name. Binance has produced products and solutions to serve a number of purposes, such as crypto loans and peer-to-peer (P2P) crypto trading.

Included under Binance’s brand umbrella are two separate but parallel blockchains available for building: Binance Chain (BC) and Binance Smart Chain (BSC).

Where do the two networks stack up in terms of Binance Chain versus Binance Smart Chain? In short, Binance Smart Chain launched after Binance Chain as a blockchain hosting greater functionality for developers building solutions. For example, BSC is smart contract compatible, while BC is not.

BSC and BC run parallel to each other. Binance Coin (BNB), Binance’s crypto asset, is used as payment for fees on both blockchains (in addition to playing other roles in Binance’s ecosystem). Moving between BC and BSC requires a bridge called Binance Bridge.

The Binance Bridge intends to make multiple blockchains more interoperable. It allows anyone to exchange their crypto assets into (and back from) Binance Chain and Binance Smart Chain wrapped tokens.

Wrapped tokens allow users to use coins and other blockchains on another chain, like Binance Smart Chain. Binance Bridge, for example, can facilitate the cross-chain conversion of Ethereum ERC-20 to Binance BEP-20, for example, if you move Tether (USDT) from Ethereum to Binance Smart Chain. These wrapped assets are backed by actual money and tokens on public addresses.