Binance Unveils Smart Contract Blockchain but Claims It’s No Ethereum Rival

Binance has released a white paper detailing a new smart contract blockchain it says offers a high-performance base layer for decentralized apps – but might also be a challenger to Ethereum.

The cryptocurrency exchange said Friday the new Binance Smart Chain (BSC) would work as a smart contract layer running parallel to its existing Binance Chain. The new blockchain, it said, comes with a matching engine capable of fast trade executions and a new consensus mechanism designed to combine fast confirmation times with strong on-chain governance.

Although Binance does not explicitly state BSC would be a rival to Ethereum, and the company stressed to CoinDesk this was not the company’s intent, the white paper hints the new smart contract layer could perform better on several key metrics.

For one thing, its low latency platform will have faster execution times. For another, its consensus mechanism – a hybrid of EOS’ delegated proof of stake (dPoS) system and a proof of authority (PoA) system – is designed to be more efficient and environmentally friendly than Ethereum’s proof of work (PoW). (It’s worth noting that Ethereum is moving to PoS soon, via an upgrade informally dubbed Ethereum 2.0.)

Furthermore, in a statement to CoinDesk, a spokesperson said BSC was designed to ensure dapps could scale while still running on a high-performance layer to ensure a “fast and smooth user experience.” That might give an edge over Ethereum, where scalability limitations have sometimes created bottlenecks leading to soaring transaction fees and extended confirmation times. Indeed, popular game CryptoKitties quickly became so popular that it managed to put a strain on the network.

Binance, which only moved its token Binance Coin off Ethereum in 2019, denied wants to challenge the original “world computer,” however.

On the contrary, the Binance spokesperson said the two would complement one another in growing the blockchain ecosystem: “The industry needs more high-performance…

Source Link