How Binance Smart Chain Works
The main focus of Binance Chain was to introduce a swift blockchain to the cryptocurrency market, with a focus on minimizing operational expenses.It has been widely known in the crypto community as one of the most affordable and dependable blockchains in the market, being adopted as a "bread and butter" of sorts when it comes to blockchain, as it's very beginner-friendly, thus being a great eco-system for the TCT community.Their financial system through the Binance Smart Chain (BSC) is called by its CEO a "semi-centralized finance," derived from the term "Centralized" Decentralized Finances. According to him, this term accurately portrays the reality, recognizing that Binance serves as a hub facilitating less centralized financial transactions, free from stringent control by entities such as governments or traditional banks.
The BNB Smart Chain achieves an average block time of around 3 seconds through the Proof of Stake consensus algorithm. Specifically, it employs the Proof of Staked Authority (PoSA) mechanism, where participants become validators by staking BNB. Validators who propose valid blocks receive transaction fees for the transactions included in the respective block.In Tupan's vision, Binance Smart Chain provides effective solutions for users new to DeFi or those seeking a more cost-effective alternative to Ethereum. Although BSC is not fully decentralized, it extends the reach to developing countries that other blockchains could not reach.