What is Binance Smart Chain and How to Use It?

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Binance coin (BNB) is a cryptocurrency created and run by the world’s leading crypto exchange. The idea behind BNB was to create a network that would allow fast transactions with low fees. At the moment BNB is the third-largest cryptocurrency by market capitalization, after Bitcoin and Ethereum.

No wonder SimpleFX supports Binance Coin accounts, too.

What is Binance Smart Chain?

Binance Smart Chain (BSC) is a custom network very similar to Ethereum but faster and more cost-efficient. The payments are processed within 1 minute and cost $0.1, which is even up to 100-times less than through the Ethereum network.

BSC uses a dual-chain architecture, which allows sending funds from one blockchain to another. BSC is also compatible with Ethereum Virtual Machine (EVM), which means it can access ETH tools and applications, such as smart contracts and other DeFi products.

How Does Binance Smart Chain Work?

Binance Smart Chain achieves approximately three-second block times with a Proof-of-Stake consensus algorithm. BSC uses the so-called Proof of Staked Authority (or PoSA). Users running full BSC node and staking at least 10,000 BNB may become one of 21 validators and earn rewards from transaction fees.

BSC Deposits and Withdrawals on SimpleFX

You can make BSC payments on SimpleFX to fund three account types: BNB, BUSD, and USDT.

Here are the SimpleFX payments time and fees estimations for BSC and ETH Networks for February 2021:

BSC Network ETH Network
Deposit free free
USDT Withdrawal $0.1 $10
Deposit confirmation time 1 min 15 min

 

Remember that you should not send other coins or tokens with the BSC BEP20 protocol.

How to make a BSC BEP-20 Deposit?

Choose a BNB, BUSD, or USDT account, and click the “Deposit” button.

Pick the “BUSD” or “BNB Coin” payment.

Double-check if you are using the BEP20 (BSC) network (1) on your wallet or cryptocurrency exchange and copy the transaction address (2) and paste it to the application you are using to send funds.

Important: Don’t mistake BSC BEP20 with ETH ERC20

The compatibility of the Binance Smart Chain is great, however, it also brings some risks. BSC and Ethereum follow the same address generation algorithm.

That’s why you should be very careful not to use Ethereum for BSC deposits and withdrawals and the other way around. If you are using both ETH and BSC networks always double-check before the transaction if you are not mixing them up.

You can see the network you are using on the SimpleFX payments modal. Make sure you are using BEP20 in your wallet or cryptocurrency exchange when sending a BEP20 transaction on SimpleFX.

Keep your Binance coins on the SimpleFX accounts and watch them gain value while trading or go for the stable coins (BUSD and USDT) and enjoy the fastest payments with fees 100-times lower than on the Ethereum network.

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