Word of the Day | BNB Smart Chain

BNB Smart Chain

Binance launched the BNB Smart Chain in 2020. Originally, it was seen as an extension of the Binance ecosystem, built to complement the existing Binance Chain. The BNB Smart Chain was designed to address some limitations of the Binance Chain, particularly transaction speed and cost. It became popular for its faster processing and lower fees compared to other blockchains like Ethereum.

While Binance played a significant role in creating the BNB Smart Chain, it's important to understand that things have changed. The aim now is for the BNB Chain (which includes both the BNB Beacon Chain and the BNB Smart Chain) to be a more decentralized network. This means it's not solely controlled by Binance, but rather by a network of validators spread out around the world.

Binance still plays a role in things like network upgrades and security, however, the overall direction and governance of the chain is becoming more community-driven, more decentralized.

https://www.dbm.academy/faq for more blockchain vocabulary.