Back in April this year, Binance made headlines with the announcement of its Mainnet Binance Chain. Six months later, we take a look at how Binance Chain has developed and why various projects are choosing it.
With Binance DEX, one of the biggest digital assets platforms, Binance Chain has the potential to become a powerful platform for new cryptocurrencies, ICOs, and tokens trying to “hit the ground running”. Also, it gave Binance its own chain to house its Binance Coin (BNB), previously run on the Ethereum blockchain.
At the time of the launch, Binance CEO Changpeng Zhao (as known in the Twittersphere as CZ) said:
“Binance Chain brings a new level of freedom for traders, as well as to projects that are looking to raise money or liquidity. Moreover, with its core Binance Chain technology, Binance DEX can handle the same trading volume as Binance.com handles today.
Binance DEX solves the critical issues with speed and power that many traders have faced when using other decentralized Exchanges”
Why projects are choosing Binance Chain
Six months later, Binance Chain has already over 35 projects and continues to attract many projects initially built on Ethereum.
Binance Chain is making moves to surpass Ethereum sooner than we expect. Binance has an ever-growing user base and massive influence and is attempting to leverage its popularity in order to get people to migrate from Ethereum over to Binance Chain.
Interestingly, an op-ed article published on CCN earlier in July accused Binance of seemingly using smart moves to kill the growth of the Ethereum blockchain. The article alleged that Binance stopped listing ETH trading pairs on its exchange and at the same time offering Etheruem-based projects incentives like auto-listing on Binance for them to migrate to Binance blockchain.
CZ quickly moved to refute the allegations, stating that it is not true.
The increasing growth of the Binance Chain does not solely rely on Binance’s influence. The consensus why projects are choosing Binance Chain is security, speed, and ease of use. Binance Chain has no custody of funds, so traders maintain control of their private keys and assets, and trade wallet-to-wallet on Binance DEX – meaning they no longer have to worry about exchanges being hacked.
Another advantage is the Binance Community Programme – every month Binance picks the best-listed token (based on certain criteria) on Binance Chain and promotes them on Binance DEX.
The type of projects using Binance Chain are varied and all have their reasons why they chose it.
Veracity, a leading company providing rewarded video player technology to major publishers across the globe, mentioned in a Medium post why they chose to move their VRA token from the ERC-20 to Binance Chain own token BEP-2.
For them, Binance Chain has faster block times than Ethereum, making settlement confirmation faster, coupled with more frequent block times – which means faster transactions, and therefore lower transaction costs.
Another is Stably, a stablecoin (USDS.B) fully-backed 1-to-1 with a US dollar reserve managed by a Nevada-chartered trust company. They chose Binance Chain because it makes USDS.B one of the fastest major stablecoins on the market, with one-second block confirmation time and the ability to process several thousand transactions per second.
Others, want to test solutions on this new blockchain. This is the case of Blockmason that chose Binance Chain to create BCPT, a utility token for data recording to programmatic blockchains through its Credit Protocol. On launching BCPT on Binance Chain let them explore a new blockchain venue and assess the potential and suitability of cross-blockchain Credit Protocol transaction recording, along with the scaling of transaction capacity.