You may have heard of the Binance Chain, whose native token is BNB, which is optimized for fast transactions. In order to achieve speed, it has to make certain tradeoffs - on the one hand, it sacrifices the flexibility of other blockchains from a programmability perspective.
But Binance Smart Chain changes that. The Binance Smart Chain is a new blockchain with a mature environment for developing high-performance decentralized applications. It is designed for cross-chain compatibility with the Binance Smart Chain to ensure that users get the best of both worlds.
What is the CoinSmart Chain?
The CoinSmart Chain (BSC) can be described as a parallel blockchain to the CoinSmart Chain. Unlike CoinSmart Chain, BSC has smart contract functionality and is compatible with the Ethernet Virtual Machine (EVM). The design goal here is to maintain the high throughput of the full CoinSafe chain while introducing smart contracts into its ecosystem.
Essentially both blockchains are parallel. It is worth noting that BSC is not a so-called Layer 2 or off-chain scalability solution. It is a standalone blockchain that can run even after the CoinSecure chain goes offline. From a design perspective, the two chains are very similar.
Since BSC is compatible with EVM, it supports Ether tools and DApps. in theory this allows developers to easily port their projects from Ether. For users, this means that they can easily configure apps such as MetaMask to work with BSC by tweaking just a few settings. Check out CoinSmartChain using MetaMask to get started with the setup.
How the CoinSmart Chain Works
- Consensus
The CoinSmart Chain achieves a block time of about 3 seconds with the Proof of Holding consensus algorithm. It uses what's called Proof of Holding Authority (or PoSA ), where participants pledge BNBs into validators. If they present a valid block, they collect transaction fees from the included transactions.
Note that unlike many protocols, there is no overall subsidy for newly minted BNBs since BNBs do not cause inflation. Instead, the CoinSafe team performs token destruction on a regular basis, so the supply of BNB decreases over time.
- Cross-Chain Compatibility
The CoinSmart chain is envisioned as a mutually independent but complementary system to the existing CoinSmart chain. The dual-chain architecture is used in the hope that users will be able to seamlessly transfer assets from one blockchain to the other, and thus enjoy fast transactions on the CoinSmartChain, while powerful decentralized applications are built on the BSC. With this interoperability, users have access to a broad ecosystem that caters to a large number of use cases.
CoinSafe Chain's BEP-2 and BEP- 8 tokens can be exchanged for the new standard BEP-20 token on the CoinSafe Smart Chain. Have you read the ERC-20 Token Brief? If so, you will be familiar with the BEP-20 format, which has the same functionality as Ether.
Probably the easiest way to move tokens from one chain to another (i.e. BEP-2 to BEP-20 or vice versa) is to use the Chrome and Firefox browsers. Check out the use of the CoinSmart Chain Extension program wallet to do this.
Decentralized Finance and the CoinSmart Chain
Thanks to the flexibility provided by the CoinAnn Smart Chain, we can use assets from many different chains in the evolving DeFi space. Apps such as PancakeSwap allow users to exchange assets in an untrusted manner (similar to Uniswap), engage in liquidity mining and vote on proposals. Similar projects include BurgerSwap and BakerySwap (If you're new to cryptocurrency, hello! We're big fans of decentralized exchanges named after food).