Binance, Exchanges

What Is the Difference Between Binance and Binance Smart Chain?

In the cryptocurrency world, there are two major types of exchanges: those that focus purely on crypto-to-crypto trading, and those that also allow for fiat-to-crypto trading. Binance is one of the former type of exchanges, while Binance Smart Chain is the latter.

Binance was founded in 2017 and quickly rose to become the largest crypto-to-crypto exchange in the world. Binance offers a wide variety of digital assets to trade, including many lesser-known altcoins.

In addition to spot trading, Binance also offers margin and futures trading.

NOTE: WARNING: Be sure to understand the differences between Binance and Binance Smart Chain before making any trades on either platform. Binance is a centralized cryptocurrency exchange that allows users to buy, sell, and trade digital assets. Binance Smart Chain is a decentralized blockchain network that provides developers with the ability to build decentralized apps (dApps) and smart contracts. Each platform has its own unique features and potential risks, so it’s important to familiarize yourself with them before engaging in any transactions.

Binance Smart Chain was launched in 2020 as a layer 2 solution that runs parallel to the Binance Chain. BSC is powered by the native BNB token and uses a Proof-of-Staked Authority consensus mechanism.

This allows for near-instant transaction speeds and low fees. Unlike most other layer 2 solutions, BSC does not require users to deposit their tokens into a smart contract.

BSC also supports smart contracts and dapps, which has led to its rapid adoption by the DeFi community. Several popular DeFi protocols, such as PancakeSwap and Venus, have already migrated from Ethereum to BSC.

So what’s the difference between Binance and Binance Smart Chain?Simply put, Binance is a crypto-to-crypto exchange while BSC is a layer 2 solution that supports smart contracts and dapps. Both are powered by the native BNB token and offer fast transaction speeds and low fees.

Previous ArticleNext Article