BSC (Binance Smart Chain)

 

BSC (Binance Smart Chain)

⭐ 1. What is BSC (Binance Smart Chain)?

BSC is a blockchain created by Binance, launched in 2020.

Today it’s called "BNB Smart Chain" but everyone still says BSC.

It is:

  • EVM-compatible

  • Cheap fees

  • Fast blocks

  • Runs smart contracts

  • Supports tokens, NFTs, DeFi

  • Easy to deploy (copy-paste Ethereum code)

⭐ 2. Why BSC Exists? (The Real Reason)

In 2020 Ethereum gas fees were VERY HIGH.

DeFi Summer → Uniswap, Aave, Compound, Sushiswap made network congested.

Typical ETH gas fees:

  • $50 per swap

  • $100 per liquidity position

  • $150 per contract deployment

This made normal users run away.

Binance saw an opportunity:

👉 “Let’s create a cheaper version of Ethereum.”
👉 “Same code, same tools, but 100x cheaper.”
👉 “We run our own validators to keep it fast.”

And that’s exactly what BSC did.

⭐ 3. What Problem Did BSC Solve?

🟥 Problem on Ethereum:

  • High fees

  • Slow blocks (12 sec)

  • High demand + low throughput

  • Heavy competition for block space

🟩 Solution by BSC:

  • Cheap fees (few cents)

  • 3-second block time

  • Same EVM as Ethereum → code compatible

  • Very high throughput because validators are permissioned

So BSC solved:
✔ Gas fee problem
✔ Speed problem
✔ Scalability problem
✔ Liquidity fragmentation (because Binance exchanges supported BSC instantly)

⭐ 4. Is BSC a Fork of Ethereum?

YES.

BSC is literally a fork of Ethereum Go client (Geth) with:

  • different parameters

  • different consensus

  • different validator set

So deploying a smart contract to BSC = SAME as deploying to Ethereum.

This is why BSC exploded quickly — developers needed zero new learning.

⭐ 5. BSC Architecture

Let’s break architecture clean and simple.

✔ Consensus Mechanism

PoSA (Proof-of-Staked-Authority)

Validators:

  • Only ~21 validators

  • Mostly controlled by Binance

  • Selected daily via staking

  • Create blocks every 3 seconds

This is fast, but highly centralized.

Ethereum has thousands of validators.
BSC has ~21.

⭐ 6. BSC Network Layers (BNB Chain split)

There are 2 chains:

1️⃣ BNB Beacon Chain

  • handles staking

  • no smart contracts

  • validator governance

  • lightweight chain

2️⃣ BNB Smart Chain (BSC)

  • EVM chain

  • smart contracts

  • DeFi apps

  • tokens

  • NFTs

Beacon Chain = validator management
BSC = execution layer

This is similar to:
Ethereum = consensus layer + EVM layer
But BSC does it with fewer validators and high centralization.

⭐ 7. Why Was BSC Successful? (Real Reasons)

✔ 1. CHEAP GAS

Fees were around $0.10 when ETH was $50-$100.

✔ 2. Easy Migration

Ethereum developers could deploy SAME code:

truffle migrate --network bsc

Zero learning curve.

✔ 3. Huge Binance user base

Binance Exchange added:

  • BSC network

  • BEP-20 tokens

  • Direct withdrawals

This is like giving a new chain to 100 MILLION users instantly.

✔ 4. DeFi + Yield Farming boom

PancakeSwap became a cheaper copy of Uniswap.
Huge yield farming → massive hype.

✔ 5. Fast Blocks

3-second block time vs Ethereum’s 12 seconds.

⭐ 8. What BSC Brings to Developers?

✔ EVM Compatibility

Everything works:

  • Solidity

  • Remix

  • Hardhat

  • MetaMask

  • Web3.js

  • ethers.js

  • DeFi code

✔ Low deployment cost

Deploy contract for ~$10 instead of $100.

✔ Faster confirmation

3 seconds vs 12–15 seconds.

✔ Large user base

Especially retail traders.

✔ Many DeFi protocols

PancakeSwap
Venus (like Aave)
BakerySwap
ApeSwap

Everything Ethereum has — BSC has a cheaper clone.

⭐ 9. Token Standard on BSC = BEP-20

BEP-20 = BSC version of ERC-20

Identical functions:

  • transfer

  • approve

  • transferFrom

  • balanceOf

  • allowance

  • totalSupply

Everything is same.
Just cheaper.

⭐ 10. Why Many People Criticize BSC?

Because:

🟥 1. Centralization

Only 21 validators
Most controlled by Binance
You trust one corporation.

🟥 2. Easy for scammers

Because cheap gas → thousands of scam tokens.

🟥 3. Low decentralization = cheaper attacks

Chain can freeze
Binance can halt blocks
Upgrades not permissionless

Still — most users don’t care because fees are cheap.

⭐ 11. How BSC Handles High TPS?

Because it sacrifices decentralization.

Fewer validators → faster consensus.

Ethereum:

  • 1000s of validators

  • Secure

  • Slower

BSC:

  • 21 validators

  • Fast

  • Less secure

This is the scalability trilemma:

  • decentralization

  • scalability

  • security

BSC chooses scalability.

⭐ 12. How BSC Communicates With Ethereum?

It doesn’t directly communicate.

But two bridges exist:

  • Binance Bridge

  • Third-party cross-chain bridges

Tokens can be wrapped and moved to other chains.

⭐ 13. Typical BSC Developer Flow

Add BSC RPC:

https://bsc-dataseed.binance.org/
chainId: 56
currency: BNB

Deploy contract using Hardhat:

npx hardhat run scripts/deploy.js --network bsc

Interact using Web3:

const provider = new ethers.providers.JsonRpcProvider("https://bsc-dataseed.binance.org/");

Everything same as Ethereum.

⭐ 14. Why BSC Will Stay Relevant?

Because:

  • Cheap fees

  • Easy deployment

  • Millions of users

  • Backed by Binance (largest exchange)

  • Huge DeFi ecosystem

  • Perfect for retail users

  • Fast blocks

Even if Ethereum L2s dominate, BSC will remain because of its economics + ease of use.

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