The Ethereum Virtual Machine (EVM) is the foundation of the Binance Smart Chain (BSC). This blockchain network is fully compatible with the Ethereum environment. Binance Smart Chain is appropriate for decentralized applications (dApps) that demand fast transactions because it is designed to handle high throughput and low latency.
Binance Smart Chain uses the “Staked Proof of Authority” (PoSA) consensus process, a variant of the Delegated Proof-of-Stake (DPoS) mechanism. In PoSA, validators are chosen according to the number of tokens they currently hold and are willing to stake as security. Then, by approving transactions and including them in blocks, the validators sustain the network.
Binance Smart Chain contains an inter-chain transfer feature that allows movement of assets between various chains in addition to the PoSA consensus process. As a result, Binance Smart Chain can communicate with other blockchain networks and facilitate the transfer of assets between chains.
In addition, Binance Smart Chain contains an integrated token issuance and trading mechanism that enables the generation of new tokens and their trading on the Binance decentralized exchange (DEX). As a result, various decentralized financial services, including lending, lending, and trading, can be developed on Binance Chain.
Binance Chain’s built-in governance system also allows token holders to vote on network modifications, such as adding additional validators or adjustments to the consensus algorithm.
Smart Chain Validation for Binance
There are 21 validators in total on Binance Smart Chain. These validators validate transactions and add them to blocks to support the network. They are compensated for their efforts. To continue serving as a validator. Each must invest a fixed amount of Binance Coin (BNB) as collateral and demonstrate strong performance.
Many more Binance Smart Chain users have delegated their Binance Coin to these validators to share the profits; therefore, these 21 validators are just some of the participants in the network.
A transaction goes through the following steps when it is sent to Binance Smart Chain:
- All validators in the network receive a transmission of the transaction.
- Each validator verifies the transaction to ensure that it is genuine and complies with Binance Chain policies.
- The validator adds a transaction to a block after it has been confirmed.
- The block is then broadcast to the rest of the network. Where it is verified by the other validators to be genuine.
- The Binance Chain blockchain receives the block if it is legitimate.
- The validator gets paid for their efforts once the block has been uploaded to the blockchain.
