Developed by cryptocurrency exchange giant Binance, BNB Chain—also known as the "Build N Build Chain"—is a blockchain designed to facilitate decentralized applications powered by smart contracts. Binance has developed this network to bridge centralized finance (CeFi) and decentralized finance (DeFi) for its global user base.
Key Takeaways
- BNB Chain consists of three interconnected blockchains: BNB Smart Chain (BSC), opBNB, and BNB Greenfield.
- The native utility token, BNB, is used for transaction fees, staking, and governance.
- Today, BNB Chain is among the most popular blockchains and the fourth-largest DeFi network per its +$4 billion in total value locked (TVL).
What is BNB Chain?
BNB Chain is a blockchain and ecosystem of interconnected scaling solutions designed to support speed, scalability, and affordability around DeFi and non-fungible token (NFT) apps. This ecosystem's three main pillars are as follows:
BNB Smart Chain (BSC)
Launched in 2020, BSC is an Ethereum Virtual Machine (EVM)-compatible network, enabling developers to port their Ethereum apps over easily. BSC uses a Proof of Staked Authority (PoSA) consensus mechanism, which combines elements of Delegated Proof of Stake (DPoS) and Proof of Authority (PoA). This setup ensures short block times and lower fees.
opBNB
A Layer 2 (L2) scaling solution leveraging optimistic rollups technology to significantly increase transaction throughput and reduce fees. It enhances BNB Chain’s capacity for powering many applications by offloading transaction processing from BSC while posting data to the underlying mainnet.
BNB Greenfield
A decentralized storage infrastructure that offers secure, scalable data management. It allows users to create, manage, and share data assets with the same ease and efficiency as traditional cloud storage but with the added benefits of blockchain security. In particular, it's designed to integrate data ownership functionalities with DeFi apps.
Why BNB Chain?
With over 750 DeFi apps and counting, BNB Chain boasts the second-largest DeFi ecosystem in the cryptoeconomy today behind only Ethereum currently. This ecosystem includes decentralized exchanges, lending protocols, NFT marketplaces, and beyond. Despite its centralized development so far, the network continues to evolve and has done a good job at maintaining its status as a popular activity hub in crypto.
How to invest in BNB Chain?
BNB is the native utility token of the BNB Chain network, serving purposes like paying for transaction fees and offering access to participating in the blockchain’s onchain governance system. BNB is also used for trading pairs on Binance and other platforms within the BNB Chain ecosystem.
At the time of this guide's latest update, BNB was trading around $492 per token with a $71.78 billion market capitalization, making it the fourth-largest crypto at present.
Top BNB Chain projects
The BNB Chain app ecosystem is among the most sprawling in the cryptoeconomy, boasting over 800 projects today. Some of the top apps to explore here include:
- 🔄 Venus – a marketplace for borrowers and lenders
- 🥞 PancakeSwap – a popular multichain decentralized exchange
- 🪙 Binance ETH Staking – Binance's platform for staking ETH via WBETH
- 💨 CoinWind – a DeFi yield farming platform
- ⚖️ Vooi – a decentralized exchange aggregator for perpetuals trading