The increasing adoption of the Binance Smart Chain makes the BNB ecosystem one of the most relevant networks for smart contract issuances. The BNB network profited from a major increase in market diffusion since the number of unique BNB Smart Chain addresses more than doubled since June 2021. One year later, in June 2022, the total number of unique addresses reached a cumulative amount of almost 175 million unique addresses.
BNB Chain developments
At the beginning of 2022, Binance announced plans to move away from its one-chain structure to a dual blockchain structure. In order to allow seamless transfers of assets from one chain to another, the former Binance Chain and Binance Smart Chain are merged to the BNB Chain.
Before the introduction of the BNB Chain, the Binance Chain was the native chain to the former Binance Coin (now BNB coin). The Binance Chain primarily served to facilitate fast and efficient trading and was therefore rather inflexible. In order to comply with Web3 developments and more complex transactions an expansion was necessary.
To support the creation of smart contracts and dApps, Binance introduced the Binanace Smart Chain (BSC) in 2020. The Binance Smart Chain ran separately from the Bianance Chain and was specifically designed to support DeFi projects.
The new BNB dual blockchain integrates, both the Binance Chain and the Biannace Smart Chain in a Multi-Chain-System. The BNB chain is composed of the BNB Beacon Chain (previously Binance Chain) and BNB Smart Smart Chain (previously Binance Smart Chain). The BNB Beacon Chain serves chain governance processes including staking and voting. The BNB Smart Chain, on the other hand, is EVM compatible with hubs to multi-chains. Smart contracts are thus running on the BNB Smart Chain.
Binance aims to become market leader for MetaFi infrastructure
The recently introduced BNB Chain reflects Binance’s efforts to develop the underlying infrastructure for MetaFi. The term “MetaFi” blends the two words “Metaverse” and “DeFi” and refers to a concept that combines all kinds of projects including Meta, DeFi, GameFi, SocialFi, Web3 and NFTs. The goal of MetaFi is to develop an innovative ecosystem that combines several blockchain functionalities in one interoperable meta ecosystem.
Technical Architecture of the BNB network
BNB Chain supports a Delegated Proof of Stake consensus mechanism
The BNB chain is based on a Delegated Proof of Stake consensus mechanism (DPoS). Compared to the common Proof of Stake consensus mechanisms (PoS), the delegated proof of stake mechanism is known to be more democratic. Delegates are elected by the community and are thus authorized to make critical decisions regarding the BNB network.
In order to participate in the DPoS consensus mechanism, users must stake their coins. Therefore, the DPoS consensus mechanism incentivizes users to contribute to the security of the network with their staked collateral. Users then receive one voting right per token and can use these to vote for various delegates.
Key developments since the introduction of the BNB Chain
According to BSCscan, the BNB Chain can handle up to 160 TPS with full network usage. Compared to Ethereum, the BNB Chain is a fast and cheap alternative considering that Ethereum can only process around 15 TPS. Moreover, the new BNB Chain aims at increasing interoperability and provides on-chain governance mechanisms.
Binance is known to have a rather centralized structure among leading blockchains. However, introducing the new BNB Chain, Binance also improved the decentralization of the network. The set of validators of the BNB Smart Chain was expanded from 21 to 41.
Centralized Decentralized Finance (CeDeFi)
The term “CeDeFi” was strongly influenced by the CEO of Binance, Changpeng Zhao, and is used to describe the architecture of the Binance ecosystem. “CeDeFi” combines traditional centralized finance with decentralized applications and offers a combination of the functions of both systems.
CeDeFi is similar to DeFi but with lower fees, allowing users to benefit from crypto lending, yield farming and crypto liquidity pools. Combining decentralized structures with centralized functions also serves to address the growing concerns around cryptocurrencies regarding regulation and compliance.
In order to interact with the BNB Smart Chain, BNB Coin funds are required to pay gas and service fees. The BNB Coin is a utility and governance token that also allows its holders to participate in on-chain governance processes. To ensure scarcity, every quarter of a year, a fixed number of BNB coins is destroyed.
BEP Token Standard
The BEP20 token standard is Binance’s equivalent to Ethereum’s ERC20 token. Because the Binance ecosystem is Ethereum Virtual Machine (EVM) compatible, the application and specifications of both tokens are almost identical. Thus, the process of issuing a BEP20 token is very similar to the process of issuing an ERC20 token.
Top BNB Chain projects
With over 4 million monthly users, PancakeSwap is one of the most successful projects on the BNB Chain. PancakeSwap offers a variation of DeFi applications including a Decentralized Exchange, yield farming, prediction markets and a NFT marketplace. Another popular DeFi project on the BNB Smart Chain is the oracle provider Chainlink. Using the decentralized oracle network of Chainlink, real world data can be added to smart contracts.
How-to Create a BEP20 Token on Binance
Step 1: Add Binance Smart Chain to your MetaMask
To be able to create a token on the BNB chain, you need to add the Binance Smart Chain to your MetaMask account or the wallet of your choice. As we are creating a smart contract, we will be using the integrated Binance Smart Chain.
Open the “Networks” Page in Metamask and click on “Add network”. Then, you need to fill in the information below according to whether you plan to issue your token on the BNB mainnet or testnet. When issuing your token on the BNB testnet, creating and transferring your token is free as fees are charged in BNB faucet coins.
- Mainnet: Smart Chain
- Testnet: Smart Chain – Testnet
New RPC URL
- Mainnet: 56
- Testnet: 97
- Mainnet: BNB
- Testnet: tBNB
Step 2: Ensure sufficient BNB funds in wallet
Once you have set your wallet to the designated network, make sure to have enough BNB coins in your wallet. As you have to pay network and transaction fees in BNB, the transaction will only go through if you have sufficient funds available.
If you only plan to assess the functionality of your token, a test network can be used. Minting a token on the BNB testnet is similar to creating a token on the BNB mainnet. However, you pay gas and service fees using faucet coins. You can request a limited amount of faucet coins for free, using the BNB faucet request platform.
Step 3: Connect Wallet to Token Tool
First, open tokentool.bitbond.com and connect your wallet to Token Tool by clicking on the “Connect Wallet” button at the top right. A pop up window will appear with the multiple supported wallet options. Select the wallet of your choice.
Step 4: Select Token Standard and Network
Depending on whether you want to issue a token using the BEP-20 or BEP-721 token standard, choose “Create Token” or “Create NFT” from Token Tool’s menu. To deploy your token on the BNB network, select “BSC” from Token Tool’s dashboard and in your wallet.
Please note that both, your wallet and Token Tool, must be connected to the BNB network, otherwise a warning message pops up, reminding you that the selected network does not match the network from your wallet.
Step 5: Specify your Token’s Features and Create Token
Now, you need to specify your tokens basic and additional features. After reviewing the information you filled in, click on “Create Token” to deploy your token to the AVAX blockchain. As soon as you agree to Token Tool’s Terms and Conditions and confirm the transaction, your token will be automatically created and transferred to your wallet.
A pop up window will appear with your block explorer link contract ID as shown in the screenshot below; you will also find an “Add to Metamask” button to easily add tokens for them to be displayed your wallet:
Congratulations! Your token has been successfully deployed to the BNB network.
Step 6: Start your fundraising via token offerings
You just experienced how easy it is to create your token using Token Tool. Now that you have your tokens created, you are all set to kick off your crowdfunding campaign.
Wondering how to start your token crowdsale? Token Tool is here to save the day, with the “Create Token Sale” you can create token presale as effortlessly as creating your tokens. Our article on how to create a token presale provides you with a step-by-step guide to start your own token offering.
The Binance ecosystem offers high interoperability, fast transaction speed and low fees and is thus a great alternative to mint your own token on. Using Token Tool by Bitbond you can effortlessly create and manage your own token on the BNB Chain. Check out our article on how to create your own token in 5 minutes for a more detailed description.