New Binance Blockchain Will Support Smart Contracts

On April 17, the developers of Binance Chain released a whitepaper blockchain that will allowBNB token to work withsmart contracts.

The new Binance Smart Chain will be independent, but closely linked to the original Binance Chain blockchain. The BNB token will act as the native token of the new smart contract platform.

The development team explains that the creation of the new network is necessary to ensure that "smart contracts do not reduce the efficiency of the original network on which Binance's DEX operates ."

Smart Chain will enable Binance ecosystem projectsCreate sophisticated decentralized applications based on the Ethereum virtual machine. The network will use the Proof-of-Staked-Authority consensus algorithm. In practice, this algorithm is very similar to Distributed Proof-of-Stake, which uses the EOS network.

As with the EOS network, the creation of blocks on the new blockchain will beThere are 21 active validators who will vote for them by BNB holders, who willLock up your tokens in order to cast your vote. 

Validators will not receive rewards formining blocks, they will receive only transaction processing fees. The developers said that the network will support a staking system, and users will receive part of the awards from the validator for which they voted.

An interesting aspect of this technology is thatthe fact that the reward share of each validator does not depend on the number of blocked coins. Thus, users who vote for more popular validators will receive less reward, since they will need to share with a large number of participants.

The development team says that “this system will prevent the concentration of funds in the hands of a few,” and will also solve the problem when “the rich get richer."

Recall that this week the Binance exchange officially launched the function of trading bitcoin options on its futures platform.

Based on materialscointelegraph.com