Binance Smart Chain (BSC) is a #blockchain network developed by [[Binance]], one of the world's largest cryptocurrency exchanges. Here are the key details about BSC: - BSC is a parallel blockchain to Binance's original blockchain, Binance Chain. It was launched in 2020. - The main goal of BSC is to provide faster transaction times and lower fees compared to the [[Ethereum]] network, making it attractive for decentralized applications ([[dApp]]s) and [[Decentralized Finance (DeFi)]] projects. - BSC is compatible with the [[Ethereum Virtual Machine (EVM)]], meaning it can support Ethereum-based smart contracts and dApps. This allows developers to easily port their Ethereum-based projects to BSC. - BSC uses a consensus mechanism called [[Proof of Staked Authority (PoSA)]], which relies on a set of validator nodes that are elected through staking BNB, Binance's native cryptocurrency. - The BSC ecosystem has grown rapidly, with thousands of dApps, decentralized exchanges, lending protocols, and other DeFi projects building on the platform. - However, BSC has faced some criticism due to its relatively high degree of centralization compared to more decentralized blockchain networks. This is because Binance has a significant influence over the validator nodes and governance of the network. - Despite the centralization concerns, BSC has become a popular choice for crypto projects and users seeking lower fees and faster transaction times than Ethereum. Overall, Binance Smart Chain represents Binance's effort to provide a high-performance, Ethereum-compatible blockchain infrastructure to support the growth of the broader cryptocurrency and DeFi ecosystem.