#Binance is one of the largest cryptocurrency exchanges in the world and has recently been gaining attention with its growth in the DeFi ecosystem. Binance Smart Chain (BSC) is a blockchain network developed by the Binance exchange. #BSC is a network that works similarly to #Ethereum and integrates with the Binance exchange. BSC offers Binance users access to #DeFi applications with faster speed and lower transaction fees. In this article, we will learn more about Binance Smart #Chain and the DeFi ecosystem. 

 

What is Binance Smart Chain (BSC)? 

 

Binance Smart Chain (BSC) is a blockchain network developed by the Binance exchange. BSC hosts smart contract based applications similar to Ethereum. BSC uses the Smart Contract Virtual Machine (SVM), which has a programming language similar to the Solidity programming language used on the Ethereum network. BSC's main goal is to provide lower transaction fees, faster transaction confirmations and higher transaction capacity. 

 

BSC uses the Proof of Stake (PoS) consensus mechanism. BSC's consensus mechanism is powered by the Binance Coin (BNB) token. As BSC is integrated with Binance exchange, Binance users can redeem their BNB using BSC. 

 

BSC has a network structure similar to the Ethereum network. Because BSC is compatible with the Ethereum Virtual Machine (EVM), you can easily migrate portable applications (dApps) from the Ethereum network to BSC. 

 

What is DeFi? 

 

DeFi is short for Decentralized Finance and stands for decentralized finance. DeFi enables financial transactions to be carried out without using central financial institutions (banks, insurance companies, etc.). DeFi applications use decentralized blockchain technology to automate transactions and offer investment opportunities. 

 

DeFi applications cover many different areas. These include lending, borrowing, providing liquidity, bartering, derivatives, mutual funds, insurance, etc. is found. DeFi applications run on many blockchain networks such as Ethereum.

IntroductionThe creation of decentralized applications (DApps) has been fundamentally altered by the prominent cryptocurrency platform Ethereum. Since 2015, #Ethereum has enjoyed a great deal of notoriety as a result of the innovative capabilities and features that it possesses. Ethereum 2.0 is being eagerly anticipated in order to address concerns around scalability and energy efficiency. This article will be explaining all the developments done by Ethereum 2.0 and the probable impact those advancements may have on the blockchain landscape.Ethereum: 1.0 to 2.0Ethereum 1.0: Decentralized Applications FoundationEthereum 1.0, or the "Mainnet," enabled decentralized application development. Smart contracts let developers design and deploy apps without middlemen. Miners perform complicated mathematical challenges to validate transactions and protect Ethereum 1.0's Proof-of-Work (PoW) consensus process. Now lets further read about why we actually need the transformation done from Ethereum 1.0 to Ethereum 2.0.Ethereum 2.0 NeededEthereum's popularity revealed scalability concerns. Ethereum 1.0's inadequate transaction processing capability caused peak-time network congestion and excessive fees. PoW consensus required a lot of energy, prompting environmental concerns. Ethereum 2.0 addresses these issues.Ethereum 2.0: Scalability and Security RevolutionBeacon Chain Proof-of-StakeEthereum 2.0 introduces the Proof-of-Stake consensus algorithm. PoS substitutes miners with validators who stake ETH as collateral. Based on their #ETH holdings and willingness to "lock up" as collateral, these validators produce fresh blocks. Ethereum 2.0's core Beacon Chain organizes validators and syncs the network.Shard Chains: ScalingEthereum 2.0 uses shard chains to scale. These shard chains divide the #network into shards that can process transactions and smart contracts. Ethereum 2.0 enhances transaction capacity by dividing workload over different shards.Finality: CrosslinksEthereum 2.0 adds shard chain state crosslinks. Crosslinks regularly include shard chain data in the Beacon #Chain to secure and finalize transactions. All validators agree on the network state, limiting malicious behavior and boosting security.Scalability and Transaction Speed after Ethereum 2.0Ethereum 2.0 uses shard chains to increase scalability and transaction speed. This greater scalability allows complicated decentralized application development and broad adoption.Sustainable EnergyEthereum 2.0's PoW-to-PoS switch saves energy. Ethereum becomes energy-efficient and sustainable by removing mining. This move meets demand for sustainable blockchain solutions and decreases Ethereum's ecological footprint.Better UX and Lower FeesEthereum 2.0 reduces transaction costs and network congestion to enhance user experience. Increased transaction capacity allows quicker and cheaper transactions, making Ethereum more accessible.ConclusionAs we have mentioned before, Ethereum 2.0 is a major milestone. Scalability, security, and energy efficiency of Ethereum 2.0 will alter blockchain. Shard chains and PoS consensus will enable new decentralized apps and encourage adoption. Ethereum 2.0 will transform blockchain in 2024.