Crypto Exchange Binance adds smart contracts according to the new white paper. In its release, the company proposed a blockchain that would run in parallel with chain, with the smart contract function.
Smart Contracts allow more complex transactions to occur on the blockchain. They can be used to run decentralized applications (dapps). Ethereum is the first blockchain platform to fully support smart contracts
Binance Chain is a distributed, but not very decentralized blockchain mostly run by Binance. It has a high throughput or highly performing matching engine as Binance calls it, which allows it to support a large number of transactions. However, it currently lacks the flexibility to support more complex applications.
“Today, the Binance Chain development team proposed the idea of a parallel blockchain of the current Binance Chain to retain the high performance of the native DEX blockchain and to support a friendly Smart Contract function at the same time,said the Binance Chain Development Community (BCDC), in a press release.
The Binance Smart Chain will be run by 21 validators, similar to EOS and Tron, with a proven consensus mechanism at stake (PoSA). It will support short block time and low cost. BNB will be the original token.
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It will also be compatible with the Ethereum virtual machine, making dapps easier to use on both platforms. But do they want to switch?