BNB Chain: Story of Success
Binance announced BNB Chain in February 2022 without much hype. Although we’ve been familiar with this solution since 2017 and the release of the Binance exchange, this was a huge step in the chain’s evolution. But where does it stand nowadays?
The article discusses the history and recent developments of the chain, telling the story of Binance’s success with it. The information below should help you understand whether now is the right time to convert BNB to BTC or whether you should consider alternative trading moves. Here’s what to know about the BNB Chain!
What Is BNB Chain and Where Did It Come From?
The story starts in 2017, with the launch of Binance and the BNB token. The developers launched the Binance Chain, which was their initial blockchain. But they soon realized its limitations, so they created another one. BSC or Binance Smart Chain had compatibility with apps based on smart contracts, which was important for future development.
It took until 2020 to release BSC, but it was right on time since that’s when DeFi was towards its peak popularity. In 2022, rebranding the Binance Smart Chain and merging it with the Binance Chain led to the creation of the BNB Chain.
The idea is for this chain to go beyond the actual Binance project, especially the decentralized exchange. BNB now stands for “Build and Build,” and the developers hope it will continue to rival other layer-1 blockchains, such as Ethereum.
BNB Token: What’s So Special About It?
BNB first hit the crypto market in 2017 as the Binance Coin. It launched on the Ethereum network as an ERC-20 token. But Binance had the idea of creating its own chain. Once that was completed, BNB migrated to that ecosystem. Today, the BNB token uses BEP-20 standards found on the BNB Chain. You can use these standards to create other fungible coins.
Binance has huge plans for the BNB Token. It lists potential uses in several categories, including payment, service, travel, finance, and entertainment. The BNB token also serves for trading fees on the exchange platform. Some payment platforms, such as HTC, Monetha, and Coinify, support using BNB to pay for gifts and other goods. You can also use it on entertainment platforms like Decentraland and Axie Infinity to pay for services like BitTorrent, etc.
The current value of BNB Token is around $300, which puts it in the top five most valuable coins in the crypto market. It’s best to use an anonymous cryptocurrency exchange to trade it effortlessly.
Recent Developments on BNB
A huge hit to the BNB Chain occurred in October when a cyberattack used a “potential exploit” and tried to steal roughly $570 million. The estimation is the attackers got away with “only” $100 million.
It was a huge blow to BNB’s value and blockchain’s reputation. BNB Chain Team did the right thing – owned the problem and focused on releasing a quick update to minimize future risks. The ecosystem was only down for hours, and the development team launched an update in days.
Although the hack attack was a setback, BNB Chain keeps moving toward its desired goals. The top priority is exceeding the popularity of Binance and outperforming Ethereum. The platform increased the gas cap per block to 200 million.
Implementing this change was scheduled before Q3 2022 ends. Its goal is to offer more chain capacity to end-users and make it easy for node runners and validators to maintain the full node.
Other strategic efforts focus on expanding the ecosystem with new use cases, such as public goods and social applications. Increasing the community and improving accessibility and functionality to enhance user experience are other main development areas.
Where Is BNB Chain Headed?
The roadmap that Binance describes is the BNB Chain’s planned schedule until Q1 2024. According to that plan, the platform should release a next-generation sidechain before 2022 finishes. The aim of the ZK-rollup sidechains is to offer a strong capacity that can get up to 10k TPS. Users will benefit from a smooth cross-chain experience and a simple setup. The plan is for the sidechain’s implementation to occur in two phases.
Another goal is to design cheaper storage for non-ledger data. The idea is to keep this solution decentralized and enable light apps, which are ideal for non-DeFi solutions. It’ll be interesting to see what the future brings for BNB Chain, but one thing is certain – this system is here to stay.
Strategic Partnerships and Collaborations
Strategic partnerships and collaborations have played a crucial role in the success story of BNB Chain. By joining forces with key industry players and fostering relationships with various entities, BNB Chain has been able to enhance its ecosystem, drive adoption, and expand its reach. Here, we explore some notable strategic partnerships and collaborations that have contributed to the growth and success of BNB Chain.
Collaboration with Traditional Financial Institutions
BNB Chain recognized the importance of bridging the gap between traditional finance and the blockchain world. Through strategic collaborations with established financial institutions, such as banks and payment processors, BNB Chain has been able to create avenues for seamless integration of digital assets into the traditional financial system. These partnerships have facilitated easier fiat onboarding and offboarding processes, enabling a broader user base to participate in the BNB Chain ecosystem.
Integration with Major Exchanges and Wallet Providers
To ensure widespread accessibility and liquidity for its native token, BNB, BNB Chain has formed partnerships with leading cryptocurrency exchanges and wallet providers. These collaborations have allowed BNB to be listed and traded on prominent platforms, enhancing its market presence and enabling easy access for investors and users worldwide. Furthermore, integrating with wallet providers has provided a secure and convenient storage solution for BNB holders.
Collaboration with Blockchain Projects
BNB Chain has actively sought partnerships with other blockchain projects to foster interoperability and synergistic growth. By collaborating with compatible projects, BNB Chain has facilitated cross-chain asset transfers, enabling seamless interaction between different blockchain ecosystems. These partnerships have expanded the use cases of BNB Chain and created opportunities for users to leverage diverse functionalities within the blockchain space.
Collaboration with Decentralized Applications (DApps)
BNB Chain has established strategic collaborations with various DApps, ranging from decentralized finance (DeFi) platforms to gaming and non-fungible token (NFT) marketplaces. To better understand NFTs, you can check our in-depth beginner guide to better understand how you can utilize them. These partnerships have leveraged the capabilities of BNB Chain to provide users with a wide array of decentralized applications and services. By integrating with successful DApps, BNB Chain has enhanced its utility and attracted more users, contributing to its overall success.
Partnership with Academic Institutions and Research Organizations
BNB Chain recognizes the importance of research and development in advancing blockchain technology. To foster innovation and knowledge sharing, BNB Chain has collaborated with academic institutions and research organizations. These partnerships have facilitated joint research projects, academic grants, and the exploration of emerging technologies. By actively engaging with the academic and research community, BNB Chain has positioned itself at the forefront of blockchain advancements.