Crypto exchange Binance has announced the evolution of its Binance Chain and layer 1 blockchain Binance Smart Chain (BSC) into BNB Chain.
BNB stands for “Build and Build” and represents the Binance Coin. According to the letter addressed to users, Binance states that the rebrand symbolizes BSC’s connection with the BNB token and the BNB ecosystem.
Binance Dives into GameFi and Metaverse with Rebrand
The new BNB Chain consists of the BNB Beacon Chain, previously the Binance Chain, and the BNB Smart chain, previously the Binance Smart Chain. The former is for BNB token staking and voting, while the latter hosts smart contracts.
The evolution may be Binance’s efforts to dive into GameFi and Metaverse applications. The BNB Beacon Chain and BNB Smart Chain, freshly-named BNB Chain, will include EVM-compatible consensus levels like multi-chain hubs. The new chain also covers large-scale applications like GameFi, SocalFo, and the Metaverse.
Sami Karim, the coordinator of the BNB Chain ecosystem, stated that they were moving from scaling from one chain to several. The rebrand will also see the ecosystem expand the set of BSC validators from 21 to 41, of which 20 will have the candidate blockchain producer status.
The new BNB Chain may be Binance’s attempt to push back against its declining market position. In the past, critics have attacked BSC for being too centralized. Crypto exchange Binance revealed that it had dedicated over $1 billion to support the BSC ecosystem.
BSC’s Ups and Downs
The freshly-named layer 1 blockchain BNB Chain will be competing with the likes of Ethereum and several others. When it first launched in September 2020, BSC mimicked the Ethereum blockchain in its low-cost transactions and timely processing. The platform soon prospered because of its ease of operations, interoperability, and low cost.
However, with its success also came the loopholes. Reportedly, a large number of fraudulent projects run on BSC. According to an analysis by blockchain security company Peckshield, more than 50 fallacious projects were on BSC.
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