Binance created the BNB Beacon Chain to make its blockchain more decentralized. Holders of BNB coin will be able to vote on governance issues on the network, and the company is aiming at getting these tokens in the hands of as many people as possible.
Briefly about BNB Beacon Chain
Changpeng Zhao (CZ) is the founder of Binance and the creator of BNB Beacon Chain. He noted that his main reason for developing the Beacon Blockchain was to make the network more decentralized. This is in line with the general spirit of cryptocurrencies and blockchain technology. You can create dApps on the network and can also create new BEP2 tokens on it.
BNB beacon chain is an open source blockchain that used to be called Binance Chain.CryptoLists.com
BNB Beacon Chain was developed by Binance, but it is set to become more decentralized. It does not carry the name Binance as it is supposed to be distanced from the company. Unlike Binance Smart Chain, this network does not support the creation of smart contracts. You can use it to transfer tokens for very low fees.
Utility of BNB Beacon Chain?
One key use for this blockchain is in governance. Anyone who holds BNB tokens can vote on governance issues regarding the network, and that means the general public is in control of the future of the network. The blockchain is also used to develop dApps and has become a major competitor to Ethereum. These dApps include decentralized exchanges, GameFi, and Landing.
BNB Beacon Chain
Release Date: May 8, 2019
Advantages at BNB Beacon Chain
+ It supports a high level of scalability.+ The BNB Beacon Chain is aiming at being completely decentralized.
+ Gas fees on the blockchain are very low.
+ BNB Beacon Chain is secured with the proof of authority consensus.
Disadvantages
- The network has to compete with the established Ethereum blockchain.- You can’t use this network to create smart contracts, try BSC instead.
- Proof of authority may not be very secure.
Costs
▪ Rated at 10/10The gas fee on the BNB Beacon Chain is only $2. This is extremely low as its main competitor, Ethereum, has an average gas fee of about $20. The low gas fees and high transfer speed have made BNB Beacon Chain one of the best networks for developers and crypto traders.
Reputation and Buzz
▪ Reputation rated at 9/10▪ Buzz rated at 9/10
The Beacon Blockchain has been accepted well by the general crypto community. Lots of people appreciate the company’s effort to make its network more decentralized. The main complaint users have is that the gas fees are still higher than those of networks like Bitgert. You can follow BNB Beacon Chain discussions on Twitter, where the company has over 2.4 million followers.
FAQ
Who created BNB Beacon Chain (BC)?
This network was developed by Changpeng Zhao or CZ. The Chinese-Canadian business executive was part of the team that created Blockchain.info. He was also the chief technology officer at OKCoin.
Is BNB Beacon Chain (BC) proof of stake?
No, this network uses the proof of authority algorithm. With this consensus mechanism, machines earn the right to generate new blocks by going through a vetting process. Since proof of authority relies on a small number of block validators, it allows for high levels of scalability.
How does BNB Beacon Chain differ from Binance Smart Chain?
BNB Beacon Chain and Binance Smart Chain operate independently of each other. Both blockchains can be used to transfer BNB tokens, but Beacon Chain handles BEP2 tokens, while the Smart Chain handles BEP-20 tokens.
Why is it called BNB Beacon Chain instead of Binance Beacon Chain?
Binance has experienced a wide range of regulatory challenges, and these have affected its branding. To distance the blockchains from the brand, it avoids using the name ‘Binance’ and instead opts for ‘BNB’.
What is the BNB token?
This is the native cryptocurrency of the BC ecosystem and also of BNB Chain (BSC). It is used for governance, so holders can help guide the future of the network. The coin is also used to pay transfer fees. That means all users of the blockchain must hold BNB tokens.
Screenshots from BNB Beacon Chain
Native crypto coin for this blockchain? Learn more about BNB Coin (BNB)
BNB is the native coin for BNB Beacon Chain. It is therefore also worth reading more about that on the link below.›› Read our full BNB Coin review here
Crypto site involved in the BNB Beacon blockchain and BNB
Do not miss out on reading about Binance who is the primary crypto site involved in BNB Coin (BNB), hence also the blockchain itself.›› Read our Binance review here
BNB is the native coin of BSC and one of the five biggest cryptocurrencies in turn of daily turnover.
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