The Binance Smart Chain

The cryptocurrency market is characterized by the bull and bear season. Where bull season is perceived as the season where investors make money and bear when they tend to lose money.

However, there are other ways to make consistent passive income in a bear market, that don’t involve fixing your eyes on the trading chart, studying the candlestick, and looking for a possible breakout.

In this article, we are going to center our interest on the Binance smartchain ecosystem, what it’s, what technology drives it, and how we can leverage its products to make money passively without hassle even in a bear market.

The Binance Smartchain 

Launched in September 2020, Binance smartchain (BSC) is a smart contract-based proof of stake authority blockchain (POSA) launched by the world’s leading cryptocurrency exchange company Binance to facilitate the Binance Chain. 

Binance launched its chain in April 2019 and is now known as the BNB Beacon Chain.

Because of the limitations of the Beacon chain blockchain system, Binance launched the Binance Smart Chain. Scalability, smart contracts, and flexibility are lacking. As seen on Binance.org, the blockchain facilitates fast, decentralized (or non-custodial) trading.

Due to this scalability problem, Binance decided to develop the Binance Smartchain.

Through the development of Binance Smartchain, which is compatible with the Ethereum Virtual Machine (EVM), they solved several problems, including adding smart contracts and scaling the entire network.

Binance Chain, or BNB Beacon Chain, supports BEP-2 tokens, while Binance Smart Chain supports BEP-20 tokens. The BEP-20 tokens are required to use dApps on BSC, while the BEP-2 tokens are required for Binance DEX.

There has been a lot of activity on the BNB Smart Chain (BSC). Token swaps, decentralized money markets, and cute non-fungible tokens are just a few of the ways to earn yield or have fun.

How Does Binance Smartchain Work

Binance Chain (BNB Smart Chain) is a unique blockchain project that combines the best features of both Bitcoin and Ethereum. Binance Chain scales and synchronizes faster, making it perfect for decentralized applications, large-scale P2P exchanges, and other use cases.

The Binance smartchain uses proof of stake Authority (POSA) which is a combination of proof of work (POW), and proof of stake (POS). In this consensus system, users have to stake a certain amount of BNB to become validators, and whenever they put forth a valid block they earn rewards in the form of transaction fees. 

This consensus system enables the network to produce a new block every 3 seconds, thus making for a super-fast transaction.

The Binance Chain aims to solve several problems that currently plague traditional blockchain ecosystems. While many platforms struggle with scalability issues, transaction fees, and longer confirmation times, BNB enjoys super fast block times without any gas costs because it uses a radically different consensus algorithm.

Example of Binance Smartchain Products

Wallets 

A cryptocurrency wallet stores the public and/or private keys for cryptocurrency transactions. The basic functionality of a cryptocurrency wallet is protecting the user’s crypto assets, though they can offer more advanced features such as encrypting and/or signing information.

The main goal and benefit of having a cryptocurrency wallet are to hold your currency, in a way that it cannot be erased if the hardware or software is corrupted or lost. There are many other options available on the market such as web wallets, mobile apps, and hardware wallets.

To get started in the Binance Smartchain world of crypto, you’ll need a wallet to interact with other applications on the platform. There are a few options to choose from, and we’re excited to share them with you. They include

• Trust wallet: If you’re interested in using BSC from your pocket, TrustWallet is one of the easiest options. It has a good user interface, easy to navigate, and newbie friendly 
• Metamask: A cryptocurrency wallet that’s available as a chrome extension and mobile. Unarguably, it’s one of the most used cryptocurrency wallets.
• Binance SmartChain Wallet: A crypto wallet that supports both the Binance Smartchain and Beacon Chain, and it’s only available as a chrome extension.
• Mathwallet: This is a multi-chain wallet that supports over 140+ chains including the Binance Smartchain.

Decentralized Applications.

Decentralized applications are programs that run on a decentralized peer-to-peer network. Dapps is a decentralized application that runs on the blockchain, which provides a way for people to interact with each other and make contracts without a central authority. Users are in control of their own money, credit rating, and identity storage, even if there is no official bank for the virtual currency.

We now have a wallet, where we can transfer some funds. What can we do with our magic internet money? 

Let’s take a look at some of the most popular decentralized applications on Binance Smartchain. They include:

• Pancakeswap: The most used automated market maker in the binance smartchain network just as we have Uniswap for the Ethereum Network. It has a good user interface, easy navigation, and is newbie friendly.
• Venus: This is used to disrupt the traditional way of lending and borrowing money. Venus is a lending and borrowing platform in the Binance Smartchain just as we have AVVE as a lending and borrowing platform in Ethereum

DAO’s

DAOs are the future of organizational decision-making. DAOs, or decentralized autonomous organizations, are essentially digital organizations that operate without a central authority. They are built on open source and transparent so anyone can take part in them from an investor to a voting member. Their structure is built to be efficient and effective for those who use it due to the benefits listed above.

Let’s take a look at some of the most popular decentralized applications on Binance Smartchain. They include:

Mantra DAO – This is a blockchain solution, which enables financial institutions, governments, and individuals to build, operate, and manage their decentralized applications (dApps) and cryptocurrencies.

DAO Maker – DAO Maker is a platform that aims to redefine venture capital for the masses, by providing scalable technologies and funding support to tokenized startups. Using DAO Maker’s custom token-powered blockchain, they create low-to-no turnout frameworks. This enables retail investors & individuals to become active in venture capital. Using smart contracts and our custom token payment engine, we guarantee that every token is spent once before it gets frozen… so you know where your money is going before it goes anywhere!

Clear DAO – ClearDAO is creating a neutral decentralized derivatives exchange that enables developers and traders to easily create customized derivatives products and launch marketplaces on their platform. 

Tokens

Crypto tokens are digital assets that can be transferred from person to person without a central authority. They function as a unit of exchange on the blockchain, or a unit of account and can be used for money transfers or access to services. Some examples of tokens on the Binance Smartchain include:

• CAKE: It’s the native token of Pancakeswap, which is a decentralized exchange on the Binance smartchain where you can trade and earn anonymously. With CAKE you will be able to participate in the initial farm offering (IFO), play lottery, pottery, and trade perpetual futures.

• BSW: It’s the native token of Biswap, an alternative to Pancakeswap where you can trade and earn.

• TWT: It’s the native token of Trustwallet. 

Benefits of Binance Smartchain

Binance Smartchain is one of the world’s fastest and most secured blockchains, Binance Smartchain has encountered only one hack, which led to the loss of almost $570 Million Blockchain Bridge Hack. However, the entire network was halted, and reinstated within the shortest possible time, making it the quickest recovery from such a sensitive attack we have seen in the crypto space.

The Binance Smartchain is highly scalable, that’s its the future of it is bright, there’s room for innovations that will align in solving genuine human problems. 

Binance Smartchain using the combination of both proof of work and proof of stake consensus system enables it to produce a new block every 3 seconds, unlike in other chains, Bitcoin takes ten minutes, and Ethereum takes 13 seconds for a new block to form. 

Binance smartchain is also popular and widely used because of it high speed of transaction, low cost, and compatibility with the Ethereum Virtual Machine (EVM).

The Benefit of Proof of Work Compared to Proof of Stake Networks

The benefit of proof of work versus proof of stake is that in Proof of Work, miners compete to solve a difficult puzzle using their computer processing power as blocks are added to the chain. In Proof of Stake, the profit for mining a new block comes from transaction fees paid by those who choose to use their stake to vote on who gets to create the next block.

In proof of work, the first miner to solve a puzzle is given the reward for performing such an important service for the network. That reward is delivered in cryptocurrency (think Bitcoin) themselves. The more POW you own, the more chance you have of getting that “first” throughput share. In proof of stake, however, there is no such thing as “first” – or even any rewards at all! Instead, proof of stake miners (users) receives transaction fees when they create blocks on the blockchain.

It has been verified that proof of stake blockchains are faster and more scalable than proof of work.