New Binance Blockchain Will Support
Smart Contracts
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| New Binance Blockchain Will Support Smart Contracts On April 17, the developers of Binance Chain released a white paper of the new blockchain, which will allow the BNB token to work with smart contracts. The new Binance Smart Chain will be independent, but closely linked to the original Binance Chain blockchain. The BNB token will act as the native token of the new smart contract platform. The development team explains that the creation of a new network is necessary so that “smart contracts do not reduce the effectiveness of the original network that DEX Binance runs on.” Smart Chain will enable Binance ecosystem projects to create sophisticated decentralized applications based on the Ethereum virtual machine. The network will use the Proof-of-Staked-Authority consensus algorithm. In practice, this algorithm is very similar to Distributed Proof-of-Stake, which uses the EOS network. As in the EOS network, 21 active validators will be creating blocks on the new blockchain. BNB holders will vote for them, who will block their tokens in order to cast their vote. Validators will not receive remuneration for the extraction of blocks, they will only receive commissions for processing transactions. The developers said that the network will support a staking system, and users will receive part of the awards from the validator for which they voted. An interesting aspect of this technology is the fact that the reward share of each validator does not depend on the number of blocked coins. Thus, users who vote for more popular validators will receive less reward, since they will need to share with a large number of participants. The development team says that “this system will prevent the concentration of funds in the hands of a few,” and will also solve the problem when “the rich get richer." Recall that this week the Binance exchange officially launched the function of trading bitcoin options on its futures platform. |