Binance is at it again, making headlines in the cryptocurrency world. Now, Changpeng Zhao has issued a proclamation that the exchange is creating its own smart contract blockchain that may end up as a rival to Ethereum, which, as a smart contract leader and cryptocurrency ecosystem, is now one of the biggest names in crypto.
Tech media reports today on announcements showing that the new Binance ecosystem will provide a “high-performance base layer” for decentralized apps.
“Dubbed ‘Binance Smart Chain’ … the new blockchain would have smart contracts functionalities like Ethereum,” writes Yogita Khatri at the BlockCrypto. “Binance already operates its native blockchain called Binance Chain … which powers its decentralized exchange Binance DEX. But as it ‘doesn’t provide enough freedom and flexibility to the developers of decentralized apps,’ Binance is launching another native blockchain.”
Decentralized apps, or d-apps as they’re called, have become a mainstay in the crypto community, promoted by innovators like Tron’s Justin Sun. But the functionality of a new Binance smart contract platform is also said to provide a “matching engine” for “fast trade executions”, and new consensus mechanisms to advance how crypto operators use things like proof of work and proof of stake algorithms.
Through a low-latency platform, analysts expect this service to make crypto transactions efficient, and the Binance system is also supposed to allow for excellent scalability.
There’s even the suggestion that it may help create a more universal cryptocurrency world where traders can switch platforms without as much fanfare.
“By building a door straight into Ethereum, Binance could be looking to smooth the path making it easier for projects to switch protocols,” writes Paddy Baker at Coindesk. “As the exchange says in its white paper, being fully compatible means “most of the dApps, ecosystem components, and toolings will work with BSC and require zero or minimum changes.”
Is this yet another epic win for an exchange that has been changing the game in crypto for the last couple of years? Stay tuned.
