 |
| Binance CEO Changpeng Zhao |
- Binance CEO sees potential in African countries
- The world's interest in Africa grows
- What is Binance Smart Chain?
- How does Binance Smart Chain work?
- Independent Blockchain
- Ethereum-Compatible
- Support staking and community-based governance
- Native interoperability
- Proof-of-stake-authority
- Validator quorum
- Finance coin (BNB)
- Other supported tokens
- Staking
- Conclusion
The CEO and founder of Binance Changpeng Zhao, Said the African continent holds some unique opportunities for cryptocurrency adoption and development.
In an exclusive "ask me anything"
session hosted on Zoom for key members of the African cryptocurrency community, CZ gives a number of interesting insights into the potential in Africa.
There is a different set of challenges in Africa, and I think that's what makes it the
untapped market for cryptocurrency company in which one of them is that people were mostly underbanked, or even completely unbanked which makes it difficult to work with banks. The banking API interfaces are slightly older or nonexistent. said CZ
This made it a perfect opportunity for the crypto industry to provide an alternative, and finally, offer better living conditions by allowing people to earn digital money.
One of the great crypto industries setting their sights on the continent and tapping into Africa is
Binance Exchange a platform to buy, sell, stake, trade and exchange with the powerful stand-alone blockchain Binance Smart Chain (BSC).
Binance CEO Sees Potential in African Countries
Binance which has established itself as the world's largest cryptocurrency exchange by trade volume has slowly been opening up satellite trading platforms in African countries.
The company has launched trading support in countries like Nigeria, most recently South Africa and Uganda which was the first country to welcome Binance in 2018.
"Even from the first day when Binance launched, we had users from Africa, and they were actually relevantly active. So, we've always known that Africa is an important market. And so I think it was early 2018 that I visited Uganda, Togo, Nigeria at the same time and also Ethiopia. So, I had a little tour around Africa just to learn a little bit more about the market, and soon after that, we opened Binance Uganda"
The World's Interest in Africa Grows
Some other big tech companies that have shown interest in the African market include Twitter's CEO, Jack Dorsey sees huge potential in Africa, he even planned to move to the continent and said this during his visit to Nigeria.
Also, Facebook CEO visited a Nigerian tech company strategizing how to tap into the African market with his proposed cryptocurrency Libra.
However, some African indigen is also on the move to capture the continent's market to liberate its people.
An African-American rapper Akin also came up with his own project, with his cryptocurrency called
Akoin, to try and help Africa and its citizens, also developing plans to launch entire
smart cities which will trade solely on cryptocurrency in his home country Senegal.
However, Binance CEO stressed that despite the fact that South Africa has a number of local cryptocurrency exchanges that are operating successfully, the rest of the continent could benefit from Binance Smart Chain.
What is Binance Smart Chain?
According to Werner Vermaak
Binance Smart Chain (BSC) is a new
blockchain that aims to lower transaction costs and provide a space to create DApps and other DeFi products by running smart contract-based application
How does Binance Smart Chain work?
Binance Smart Chain runs in parallel with Binance's native Binance Chain (BC), which allows users to get the best of both worlds: the high transaction capacity of BC and the smart contract functionality of BSC.
Furthermore, Binance Smart Chain also implements the Ethereum Virtual Machine (EVM), which allows it to run Ethereum-based applications like MetaMask.
The aim of the platform is to enable developers to build decentralized applications (DApps) and help the user manage their digital assets cross-chain with low latency and large capacity.
Here are some of the attributes of BSC:
Independent Blockchain
Binance Smart Chain is a standalone blockchain, it runs in parallel with BC. This means that even if BC stops operating, BSC will continue to run its technical and business functions.
Ethereum-Compatible
Smart contracts, which are Ethereum-compatible, are supported by BSC. Through this feature, developers can build or migrate DApps, tools and other ecosystem components on the BSC network without much friction.
Support Staking and Community-Based Governance
The platform runs on a proof-of-stake (PoS) consensus model, specifically, proof-of-staked authority. BSC's native token, the Binance Coin (BNB), can be staked to contribute to network security and vote on community governance protocols. Its PoS model also enables it to process transactions faster, putting it above networks that still implement full proof-of-work (PoW) systems.
Native Interoperability:
BC and BSC can freely communicate with each other without friction, despite BSC not being a layer 2 solution (as it is an independent blockchain, parallel to Binance Chain). This makes it seamless for users to move their cryptocurrencies between BC and BSC.
Proof-of-Staked-Authority
BSC combines both delegated PoS and proof-of-authority (PoA) to achieve network consensus and maintain blockchain security. PoA is known for its capacity to thwart 51% of attacks, as well as its tolerance for Byzantine attacks.
In this model, there are elected validators who take turns in confirming transactions on the network and are tasked to produce the blocks in a PoA manner, which puts the amount of their stake and their reputation in the community into consideration. To become a validator, a user has to stake BNB.
This consensus model allows BSC to achieve around three-second block times. if a block proposed by the validator gets added to the chain, they receive the transaction fees incurred in that block as their reward.
Validator Quorum
A validator quorum is required to secure the BSC network. The blockchain has 21 validators that are elected by BNB stakers every 24 hours. Anyone can be a candidate for election as a validator, but only those who belong to the top 21 highest-staked nodes will be chosen for the next validator set.
There is an "epoch" period for the platform where validator sets can update the BSC network as needed. Every epoch period consists of 240 blocks, which is around 20 minutes.
BSC also implements "slashing" to disincentivize malicious actors from validating inaccurate transactions or double signing. Slashing is designed to expose an attacker and make their attempts extremely expensive to execute.
Binance Coin (BNB)
BNB is the Binance ecosystem's native utility token, which can be used both for BSC and BC. BNB is mainly used to pay for transaction fees on the BC and Binance DEX platform, staking and asset transfers. BNB can also be used to run smart contracts on BSC.
For those who want to participate in network security or earn additional BNB rewards, BNB can be staked on a smart contract. And should users wish to, they can delegate their stake to a BSC validator for their choice and earn proportional rewards.
Furthermore, validators have the power to
decide how much of the BNB they collected from gas fees gets to be redistributed to their delegators.
Other Supported Tokens
BEP2 and the upcoming BEP8 standards are both BC and BSC- supported tokens. ERC-20 tokens, or BEP2E tokens, as they are called in the network, are supported on the BSC blockchain. There are ways to further "enhance" ERC-20 tokens on the platform just by adding more identifiers on an asset, such as token denomination, owner address and decimal precision definition, among others, This process is called "token binding."
If you look into the BC platform, you'll see tokens launched that are pegged to a counterpart native token (also called "Peggy coins"). These tokens are also supported on the BSC network. This allows developers to launch DApps that can facilitate cross-chain exchange trustlessly, just like what PancakeSwap was able to achieve on its platform.
Staking
Staking involves BNB holders placing their "bonded" tokens in a staking pool. Then, they can delegate their tokens to a chosen validator or candidate. They can re-delegate their tokens to another validator as soon as the election for the next validator set begins.
Elected validators have the power to distribute their blocking reward to their delegators.
To remain compatible with
Ethereum, BSC implements its staking logic on BC to support this feature. This means that token bonding or delegation happens on top of the BE network, not BSC.
Conclusion
The Binance Smart Chain is a speedy and low-cost DApp platform for crypto users to enjoy. It's no surprise that the number of daily unique active
wallets keeps increasing as long as it remains as an alternative to the most popular smart contract-based blockchain, Ethereum with congestion, slow transaction speeds and exorbitant transaction fees.
Comments
Post a Comment