You might see BNB Smart Chain-based tokens in Best Wallet, or the option to transact on the BNB Smart Chain (BSC) network. But what exactly is it?
BNB Smart Chain, formerly known as Binance Smart Chain, is a blockchain network built for running smart contract-based applications.
BSC operates alongside Binance Chain, Binance's original blockchain, but with added functionality to support decentralised applications (dApps) and a wider array of cryptocurrencies.
What sets BNB Smart Chain apart is its focus on providing a high-speed, low-cost platform for users and developers. This has made it particularly popular among traders, developers, and users looking for alternatives to Ethereum due to its lower transaction fees and faster transaction times.
How does BNB Smart Chain compare to Ethereum?
The Ethereum blockchain is one of the most widely known and used networks; but how does BNB Smart Chain compare?
The Ethereum network can only perform a maximum of 17 transactions per second (TpS). In comparison, the BNB Smart Chain network can process 2,000 transactions per second.
As Ethereum has a relatively low transaction per second rate, the network becomes congested quickly. When this happens, gas fees (transaction fees) often spike and cost upwards of $10 per transaction. This high cost of transacting on the Ethereum network is a huge issue for many users.
However, the BNB Smart Chain offers a cheap alternative. Whilst the current average cost of gas fees on Ethereum sits at around $5, BNB Smart Chain’s average cost of gas fees is around $0.195. That’s why many users in Best Wallet hold and transact BNB Smart Chain-based network tokens.
Why is BNB Smart Chain cheaper than Ethereum?
BNB Smart Chain uses a consensus model known as Proof of Staked Authority (PoSA), which is a hybrid between Proof of Stake (PoS) and Proof of Authority (PoA). Consensus models refer to how a blockchain/crypto network works.
BNB Smart Chain's operating model allows for high transaction speeds and low fees while maintaining a secure and decentralised network.
In simple terms, validators stake BNB (the native cryptocurrency of BSC) for the chance to validate transactions, create new blocks, and receive transaction fees as rewards.
What are the advantages of using BSC on Best Wallet?
Adding BSC as one of your networks allows you to send, receive, and swap BSC-based tokens directly within the app. Additionally, it offers several advantages:
Low Transaction Costs: BNB Smart Chain's low fee structure is ideal for traders and users performing multiple transactions, such as participating in token swaps, presales, or simply sending and receiving crypto.
High Performance: With its high throughput, the BNB Smart Chain network ensures that your transactions are processed quickly, which is crucial during high market volatility or when executing time-sensitive trades.
Ecosystem Access: BNB Smart Chain hosts a vibrant ecosystem of dApps, tokens, and services. Best Wallet users can access a wide range of BSC-based projects directly from their wallet, enhancing their trading and investment opportunities.
Presale Participation: For those interested in early access to new tokens, BNB Smart Chain's integration with Best Wallet allows users to participate in presales directly from the wallet, potentially leading to early investment advantages.
Moving tokens to and from BNB Smart Chain
To transfer your tokens between the BNB Smart Chain and other blockchains, you'll need to use a process known as "bridging".
This is essential because assets in your wallet on one network, such as Ethereum, are not automatically available on another, like BSC, even if you use the same wallet interface, like Best Wallet.
You can swap your tokens cross-chain (cross-network) in Best Wallet, meaning you can move your tokens from and to the BNB Smart Chain!
BNB Smart Chain’s native token
The native token of BNB Smart Chain is BNB (BNB), also commonly known as Binance Coin. BNB is central to the functioning and ecosystem of the BNB Smart Chain network, serving multiple roles within the network.
Primarily, BNB is used to pay for transaction fees on BSC, enabling users to execute smart contracts, process transactions and interact with dApps.
The token also plays a crucial role in the BSC’s consensus mechanism, PoSA, where validators stake BNB to participate in network governance, validate transactions and secure the network.
This staking mechanism encourages participation and investment in the ecosystem while rewarding validators with transaction fees.
Buying and holding BNB in Best Wallet
If you currently use or want to use the BNB Smart Chain network in Best Wallet, ensure you own BNB. This will allow you to swap and send any BNB Smart Chain-based tokens successfully. This is because you need BNB to pay the gas fees on the BNB Smart Chain network.
You can buy BNB directly in Best Wallet through Onramper and their trusted third-party fiat-to-crypto providers.