The Binance Smart Chain (BSC) and the Binance Chain, the blockchains linked to the Binance platform ecosystem, become the “BNB Chain”, a new entity focused on multi-chain concepts. At the same time, with a view to decentralization, the BNB Chain will soon welcome new validator nodes.
The BNB Chain, an open and more decentralized blockchain
The cryptocurrency exchange platform Binance is lifting the veil on its new blockchain entity, the “BNB Chain”.
The name change is intended to highlight the link of this blockchain with the BNB token as well as to illustrate the decentralized evolution of the BNB ecosystem. The BNB Chain is thus composed of :
- The BNB Beacon Chain, formerly Binance Chain. It will play a role in the governance of the BNB Chain (staking of BNB tokens, voting for future proposals, etc.);
- The BNB Smart Chain (BSC), formerly Binance Smart Chain. Ethereum Virtual Machine (EVM) enabled blockchain that facilitates a multi-chain ecosystem.
“The BNB Chain will adopt large-scale applications, including [with respect to] GameFi, SocialFi and what is related to the metaverse. In particular, moving from a single blockchain to a multi-chain solution, improving scaling solutions and expanding the set of BSC validators from 21 to 41 (with 20 validators functioning as potential block producers),”added Samy Karim, BNB Chain’s ecosystem coordinator.
BNB, which stands for “Build and Build” (formerly known as Binance Coin), is the token that powers transactions on the BNB, which is needed to pay the network’s gas fees. The BNB also acts as a governance token, as holding it is necessary to participate in the governance decisions of the BNB Chain.
BNB Chain to focus on “MetaFi”
This rebranding of Binance’s blockchain also signals a special focus on MetaFi (“Meta” for metadata and “Fi” for DeFi), a concept that provides advanced and sophisticated DeFi infrastructure to many sectors such as the metaverse, GameFi, SocialFi, Web 3.0 and non-fungible tokens (NFTs).
For Binance, MetaFi represents an ecosystem that promises a paradigm shift in that it will enable seamless interoperability between different blockchains.
“The combination of these different blockchain projects creates a full-fledged parallel ecosystem serving users worldwide. The NBB Chain aims to build the infrastructure necessary to bring this virtual alternative ecosystem to life,”the Binance statement said.
Now it remains to be seen how Binance’s words will materialize. Last October, the platform released a $1 billion allocation to accelerate the development of its blockchain. It is therefore quite likely that some of these funds will be used in this expansion towards MetaFi.