The BNB Chain has replaced the Binance Smart Chain (BSC). Recently, the Binance Chain and the Binance Smart Chain merged to form the BNB Chain, according to the layer-1 blockchain of cryptocurrency exchange Binance called BSC, as reported by Cointelegraph.
The layer-1 or underlying blockchain for Binance is being relaunched as part of a strategy to connect it to the protocol’s governance token, BNB, in order to strengthen and further decentralisation.
Because BSC bears the corporate name, people frequently mistake it for being a part of Binance, according to Changpeng Zhao, CEO of Binance. He continued, “We’ve worked hard to decentralise it and hope to make BNB transcend beyond Binance.
Chanpeng Zhao, CEO of Binance, stated in a tweet that “BNB” stands for “Create the community, and let the community build, build, ‘n build,” and that it is an acronym for “Build ‘N Build.”
The recently published BNB Chain consists of the BNB Smart Chain, which is still compatible with the Ethereum Virtual Machine, and the BNB Beacon Chain for BNB Chain governance (i.e., staking and voting), said the Cointelegraph.
The BNB Chain is a development in Binance’s recent MetaFi initiatives by enhancing interoperability and creating the foundational infrastructure of the “world’s parallel virtual environment.”
BSC was introduced in 2018, three years after Binance and BNB were founded. BSC grew in popularity along with Binance. BSC was established at the same time that the DeFi movement was growing. The use cases for blockchain technology evolved over time along with the public’s interest in nontraditional financial solutions, stated the Cointelegraph.
The BNB token has continuously changed since its launch, according to Binance. It was first developed in 2017 as an ERC-20 token on the Ethereum network. It shifted to the Binance Chain in 2019 and supported the development of the BSC network, which was formally introduced in September 2020.
(With insights from Cointelegraph)