Binance to launch a new blockchain for smart contracts

Binance continues to work tirelessly on expanding its ecosystem. It is constantly making headlines by adding new features and services. This time, however, the step it plans to make is rather big, as the exchange wants to launch a proprietary blockchain. Not only that, but this one will also offer smart contracts.

Binance’s second chain will bring dApps and smart contracts

Binance just announced its new plan earlier today, calling the new blockchain Binance Smart Chain. The blockchain will run parallel to Binance Chain, the exchange’s existing blockchain.

Binance made a few remarks regarding the new blockchain. For example, it said that it is sovereign, providing safety and security for users and developers alike. Next, it is also compatible with EVM, and it will support Ethereum tooling. Finally, it will allow cross-chain communication. This will let high-performance dApps to easily scale according to the need.

In the project’s white paper, Binance specifically pointed out that “This innovative solution brings the interoperability and programmability of the Ethereum Virtual Machine (EVM) to Binance Chain.”

Binance revealed some technical details as well

Another detail that the exchange revealed is that the blockchain will use PoSA consensus. It will have 21 different validators, who will confirm all transactions. Apart from the introduction of smart contracts, it will also enable Binance DEX to run on two blockchains simultaneously.

As a result, the exchange will experience much higher liquidity. Meanwhile, BNB will get yet another use case, so it will act as the gas for smart contract execution, and as a token for staking.

Finally, the exchange said that it will not maintain the blockchain itself. That job goes to Binance Chain Development Community. The Community also commented on the new blockchain. It said that the twin-blockchain architecture will be ideal for those who wish to trade and create dApps and smart contracts.