Binance Chain has announced a new smart contract chain that will be powered by Ethereum. The new feature will allow developers to create and run their own decentralized apps.
According to a White Paper released on Friday, April 17, the new Smart Chain will support several projects on the Binance ecosystem, via Ethereum’s Virtual Machine. The new Chain will run independently but will be seamlessly connected with the first Binance Chain.
The White Paper explains that the new Chain was developed to support and maintain the original Binance Chain, keeping it running at optimum performance. The original Binance Chain supports Binance’s decentralized exchange (DEX).
The publication also includes details of the new chain’s consensus algorithm, Proof of Staked Authority. It explains that even though Proof-of-Work (PoW) is accepted and widely used for decentralized networks, it’s not the most environmentally friendly option. Furthermore, it “requires a large size of participants to maintain the security.”
On the Binance Smart Chain, block rewards will be a part of the network’s transaction fees and not as new tokens. Also, the White Paper states that blocks will be produced by a limited set of validators which will all be voted in or out, in a governance method heavily reliant on staking.