What is BNB Chain?
BNB Chain (Build & Build Chain) is a newly developed and combined Blockchain from Binance Smart Chain and Binance Chain , with many changes in technology and development vision.
BNB Chain will be a multichain platform , developing other sidechains besides BSC, thereby helping to increase blockchain performance, meeting user needs and developing protocols on this blockchain.
Why did Binance change from Binance Smart Chain to BNB Chain?
Changing the name to BNB Chain is a big decision at a time when the BSC ecosystem is showing signs of falling short of other Layer 1s such as Solana, Terra, Avalanche, etc. period of strong growth.
BNB Chain is a breeze that brings many new changes to projects and users:
- Change infrastructure: Increase throughput, optimize user experience.
- Changing vision: MetaFi development orientation, the combination of Metadata and DeFi.
- Change in decentralization: In the past, many developers thought that the BSC blockchain was too centralized (only 21 validators), going against the current decentralized trend, so there were quite a few Builders on this ecosystem. However, this will all change in the near future.
These are also the 3 main reasons why Binance changed its name to BNB Chain.
As a follower of the BSC ecosystem, I clearly feel the determination to change this time from Binance. During the BNB Chain announcement livestream, CZ mentioned a lot about: “The future will be Decentralized” , hence Binance Smart Chain > Binance Exchange, and they are trying to develop the ecosystem.
BNB Chain's Multi-chain Vision
BNB Chain will have many major changes in infrastructure compared to BSC, of which the biggest change is the development of more BSC Application Sidechains (BAS).
The BSC Appication Sidechains will be private chains, with different infrastructure such as EVM, non-EVM, PoS,... to serve a specific purpose.
One of the examples of BAS, is Binance Chain - a blockchain developed using Cosmos-SDK technology, which currently has a number of DEXs developed on it.
This change shows that BNB Chain is a multi-chain blockchain, this change will bring many benefits:
- The infrastructure is enough to meet high-scalability Dapps such as GameFi, Social, Metaverse (MetaFi) projects. Thereby attracting more projects to BNB Chain (the previous BSC platform was not enough to meet this).
- Reducing the traffic load on the main chain is BSC: BSC is one of the chains with the highest active users today.
- Better user experience: Higher transaction speed, lower cost.
Most especially, when developing from 1 chain to Multichain, then the game will not only stop on 1 main Chain but can develop in many other Chains, the competition in Blockchains with each other. You can see how exciting the games on Cosmos, Ethereum, Polkadot,... were, and the upcoming BNB Chain will be just as interesting.
Slowly growing 1 Chain to many Chains will of course be very difficult and time consuming:
- Cosmos took 5 years to build a booming ecosystem like now with 200 Blockchains.
- Layer 2 ideas have also been around since 2017-2018 when the Ethereum network was congested due to Crypto Kitties.
- Polkadot mainnet has been delayed for 1 year because it cannot provide enough infrastructure.
However, I (and probably you too) have never doubted the potential of BNB Chain and Binance. In December 2021, BSC launched a $1 B Development Fund to develop its ecosystem - a small number.
Some changes of BNB Chain compared to BSC
BNB Chain also has some other changes compared to BSC in terms of infrastructure:
Firstly, increase throughput on BSC : In the process of waiting for the infrastructure to complete, this is very necessary because currently there are many games developed on BSC, increasing throughput, reducing costs will help. gamers a lot.
Secondly, other Chains on BNB Chain will also use BNB tokens as native tokens: Unlike on Cosmos, when the native token of each chain is different, Cosmos' native token is ATOM, Terra's is LUNA, and Cronos's is CRO,... Native tokens on the chains of BNB Chai will all be BNB tokens.
Third, expand the number of validators from 21 to 41: This is also a very interesting thing, showing the spirit of "Decentralized" of Binance, gradually, Binance will no longer have the main owner and operator of BNB. Chain, which will become one of the big Support ⇒ BNB Chain belongs to the community.
Fourth, BNB Chain will develop on-chain governance: Major changes will be decided by the BNB Chain community.
These are also major changes that will positively affect the BNB Chain ecosystem in the near future, helping BNB to attract more Builders and users to BNB Chain.
So far we have learned about “BNB Chain Infrastructure Changes”, next we will learn about “Vision Change”.
What is MetaFi?
Previously, BSC was a blockchain development oriented mainly on DeFi and GameFi , BNB Chain will change this vision, namely will expand, develop development orientation on MetaFi.
MetaFi is a combination of Metadata + DeFi, combining data depth with DeFi.
About the concept of DeFi, many of you probably already understand, it is Blockchain and Decentralized financial services today such as Transactions, savings, borrowing and lending, asset management, ...
As for Metadata, it can be understood as metadata, including many types of data such as: text, images, video, audio,... The blockchain of data will help users increase ownership, as well as increase the interoperability of these data with each other.
⇒ The combination of Metadata and DeFi will form MetaFi: An economy of data exchange combined with financial activities.
The goal of BNB Chain when targeting MetaFi is to blockchainize all current Web2 applications such as social networks, games, metaverse,... → Towards the future of Web3 .
In short, Web3 is a very big and somewhat impossible trend, however, a lot of parties are focusing on developing in this trend.
BNB Chain joins the race, showing that BNB Chain is also aiming for a very big goal, namely reaching 1 billion users.
To that end, developing on MetaFi was the right (and perhaps only) decision that, if successful, would "onboard" hundreds of millions of users from Web2 applications.
Applications of MetaFi
Web2 is an extremely large economy, the development from Web2 → Web3 of course also brings many opportunities. Some of the applications of MetaFi that can be applied to Web2 can be mentioned as:
Virtual World: Digital spaces where users can interact, chat, cooperate, or play games with each other,... Virtual worlds often simulate the properties of real spaces, such as quantity. scarce land, service areas, vehicles, weapons, ... these assets in non-virtual delivery are represented in the form of NFT , users can trade and exchange them easily.
Marketplace: Trading markets such as e-commerce platforms, stock exchanges, real estate, ... are always necessary applications in the Web2 world, but it is held and stolen. dominated by large companies. These markets can be fully digitized and more decentralized, NFT will be the representative of traded assets, opening a new trading space.
Yield Farming NFTs: In the NFT-based economy, financial services will also change accordingly, that's why BNB Chain developed DeFi in conjunction with Metadata. In MetaFi, NFT can be used as collateral and borrowed for reinvestment, can be fragmented to trade in the market, staking for profit, or leased NFT, etc.
DeFi combined with Metadata will make the economy more attractive.
Fan Token: Allows owners to support the people they idolize, such as KOLs, teams, ... this is like a membership card that allows them to have more benefits when in a Fan community, for example, the right to participate in events, receive gifts, vote,... On the publisher's side, it allows them to manage the community more easily, help expand the community and reward deserving Fans. .
The future of MetaFi
MetaFi can be understood as an ecosystem that supports a lot of data storage, besides, data has ownership, is verifiable, can interact on many blockchains with each other.
Just looking at it, it is really difficult to achieve that, requires a lot of infrastructure: Cross-chain bridge, Storage, App-chain,... These infrastructures need time to develop. , this is a problem for the whole market, not just BNB Chain.
But on a positive note, we are seeing top-tier players entering development, and Binance being the latest to join in, they have enough potential to grow. But is it successful? Is there a world that everyone needs? We need time to respond.
In the short term, on the first BNB Chain will develop a few subnets and some Protocols will launch on it, most likely it will be a Blockchain Game, because the number of Games on BSC is currently very much, it can be said is an overload for the main Chain.
In addition, other infrastructure applications such as Identiy, Cross-chain bridge, etc. developed on BSC should also be considered, because that is the basis for the MetaFi trend on BNB Chain.
Investment opportunities in BNB Chain
The launch of BNB Chain opens up a number of investment opportunities for you:
Firstly, investment and BNB token: BNB token is native token on all chains of BNB Chain, so the need to buy BNB from projects and from validators for staking is huge in the future.
Second, invest in development projects on Sidechain: Each sidechain in BNB Chain will have different characteristics, and are created for a specific purpose, the development projects on it will receive the facilities. infrastructure, is scalable, provides a better user experience than development on the main chain BSC, so this is also a project group you should care about.
Finally, invest in Bridge projects: Infrastructure is the foundation for Multichain development, a Chain cannot grow without the money flowing there. This will also be the project group that is interested and supported by BNB itself, for the future of multi-chain.
