Binance to Release Parallel Chain “Smart Binance Chain” for Smart Contracts using Proof-of-Stake Authority
Smart Binance Chain
Today, the Binance announce the idea of proposing a new chain for smart contracts. They also released the white paper explaining all things related to the new ‘’Binance Smart Chain’’ and how this chain will benefit the users as well as developers.
Purpose behind New Parallel Chain
The proposal to launch a new blockchain is given by Binance Chain Development Community (BCDC). The existing blockchain ‘’Binance Chain’’ came into existence last April but this was not capable to support smart contracts. In order to compensate smart contracts and BNB staking, Binance developers introduced the idea of “parallel Binance Chain”.
Binance is thinking about adding smart contracts from long time due to increasing demand from developers. The plan delayed because the company believed that the facility would slow down the original blockchain underlying the trading platform.
Compatibility with EVM
The coming ‘’Smart Binance Chain’’ will be compatible with the Ethereum Virtual Machine (EVM). The EVM-enabled chain will open a lot of opportunities for the developers and users including ‘’all of the existing Ethereum tooling along with faster and cheaper transactions.’’
Both chains ‘’Binance Chain’’ and ‘’Binance Smart Chain’’ will be connected with each other as it will support ‘’cross-chain communication and scaling of high-performance dApps that require fast and smooth user experience.’’
‘’Ideally, users expect to use two parallel chains in the same way as they use one single chain. It requires more aggregated transaction types to be added onto the cross-chain communication to enable this, which will add great complexity, tight coupling, and maintenance burden,’’ the whitepaper reads.
The whitepaper also cleared about what will be the consensus on the new Binance’s blockchain. The consensus is called the “Proof of Staked Authority” that will work via 21 validators similar to “Distributed Proof-of-Stake of EOS“. The staking functionality will be possible via Binance Coin (BNB) The participation of validators on the network ensure the decentralized nature of the system.
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