What Is Binance Chain?

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What Is Binance Chain?

Binance Chain

Binance Chain is a blockchain platform developed by the popular Binance cryptocurrency exchange. Unlike many new blockchains, Binance Chain is not a DApp platform and does not support smart contracts, but is instead solely focused on being an efficient platform for issuing tokens and trading them. However, the platform’s functionality might be upgraded in the future to support smart contracts and other features as well. 

The native asset of Binance Chain is . In a broad sense, the token performs a similar function as does on Ethereum – it is used to pay fees for performing various actions on the network. The token standard used by Binance Chain tokens is called BEP2. 

If you would like to have a closer look at what’s happening on the platform, you can check out the Binance Chain block explorer or take a look at the trading activity in a more traditional user interface on Binance.org.

The Binance Chain ecosystem is growing at a rapid pace, with projects regularly issuing their tokens on the platform. In addition, Binance Chain has recently received its first stablecoin in the form of the dollar-pegged StableUSD issued by Stably. 

What is the difference between Binance Chain and Binance DEX?

The Binance DEX is a suite of features that runs on top of Binance Chain and allows users to place orders to trade between different assets issued on Binance Chain. 

Is Binance Chain decentralized?

At this stage, it’s hard to call Binance Chain a decentralized blockchain platform by most commonly accepted metrics. As of June 5, 2019, the Binance Chain network only features 11 validator nodes, all of which have been pre-selected by Binance. Anyone can run a full node that receives and broadcasts transactions, but doesn’t participate in the consensus process (this is reserved for validator nodes). 

For this reason, it’s probably more suitable to call Binance DEX a non-custodial exchange instead of a decentralized exchange. When using the Binance DEX, users remain in control of their private keys, and don’t have to deposit their funds at any point in the trading process. When using a supported wallet such as the Trust Wallet, users can make trades on Binance DEX directly from their wallet software. 

Peter has been covering the cryptocurrency and blockchain space since 2017, when he first discovered Bitcoin and Ethereum. Peter's main crypto interests are censorship-resistance, privacy and zero-knowledge tech, although he covers a broad range of crypto-related topics. He is also interested in NFTs as a unique digital medium, especially in the context of generative art.

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