Salomon Kisters

Jul 2, 2024

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What is a BNB Smart Chain Address?

Blockchains have evolved massively over the last decade, facilitating a wide range of industries, including healthcare, supply chain, entertainment, and video games. Among these, the BNB Smart Chain (BSC) stands out for its incredibly quick payment processing, low fees, and simplicity of use. In this guide, we will provide a detailed discussion of what a BNB Smart Chain address is, how it works, and how to get one.

What is BNB Smart Chain?

Developed and launched by the Binance crypto exchange company, BNB Smart Chain (BSC) started functioning in September 2020. Initially named Binance Smart Chain, BSC is built on top of another Binance blockchain called BNB Beacon Chain. Its primary purpose is to implement smart contracts, allowing developers to build various decentralized applications (DApps).

Key Features:

• Interoperability with Ethereum: BSC is compatible with the Ethereum Virtual Machine (EVM), enabling developers to transition seamlessly from Ethereum to Binance.
• Proof-of-Stake Consensus Mechanism: BSC uses a PoS model, allowing BNB holders to become validators and earn rewards.
• High Throughput and Low Fees: BSC can process transactions quickly and at a lower cost compared to many other blockchains.

Difference between Binance, BNB Chain, and BNB

Binance Crypto Exchange

Launched in July 2017, the Binance cryptocurrency exchange is the world’s largest crypto trading platform by trading volume. It supports over a thousand different crypto pairs and accepts numerous fiat currencies. The platform is known for its minimal trading fees, high security, and capacity to process 1.4 million orders per second.

BNB Chain

The Binance network, now known as BNB Chain, comprises two separate blockchains: BNB Beacon Chain and BNB Smart Chain. BNB Beacon Chain is primarily used for governance and staking, while BNB Smart Chain facilitates DeFi protocols and DApps.

BNB Coin

BNB, or Binance Coin, is the native cryptocurrency of the Binance ecosystem. Introduced in 2017, it was initially an ERC-20 token on the Ethereum blockchain but later shifted to the BEP-2 token standard after the launch of BNB Chain. BNB is used for paying transaction fees, staking, governance, and trading within the Binance ecosystem.

How Does BNB Smart Chain Address Work?

A BNB Smart Chain address is a unique identifier used to send and receive funds on the BNB Smart Chain network. It acts similarly to a traditional bank account number.

Public and Private Keys

• Private Key: This cryptographic key ensures ownership of the crypto assets stored in the wallet. It should never be shared with anyone.
• Public Key: Shared with the sender to receive transactions. It is a long series of randomly generated numbers and letters. Wallet addresses are derived from public keys for easier sharing.

When you want to receive funds, you provide your BNB Smart Chain address to the sender. Conversely, to send funds, you need the recipient’s BNB Smart Chain address.

How to Get Your BNB Smart Chain Address?

To get a BNB Smart Chain address, you need to set up a crypto wallet. Here’s a step-by-step guide using Trust Wallet, a popular option for beginners:

1. Download and Install Trust Wallet:

   • Available on both iOS and Android platforms.

2. Create a New Wallet:

   • Open the app and select ‘Create a New Wallet’.
   • Write down the 12-word seed phrase provided and store it securely. This phrase is crucial for recovering your wallet.

3. Get Your BNB Smart Chain Address:

   • In the Trust Wallet app, tap on the ‘Receive’ button.
   • Select ‘BNB Smart Chain’ from the list of supported cryptocurrencies.
   • Your BNB Smart Chain address will be displayed as an alphanumeric string and a QR code. Share this address to receive funds.

4. Send Crypto Assets:
   • To send BNB, tap the ‘Send’ button, enter the recipient’s BNB Smart Chain address, specify the amount, and confirm the transaction.

Note: Use BNB Smart Chain addresses only for BNB Smart Chain assets to avoid losing your funds.

Understanding BEP-336 and Its Implications

In 2024, BNB Smart Chain introduced a significant upgrade known as BEP-336, which aims to optimize data storage and transaction processing on the blockchain. This section delves deeper into BEP-336 and its implications for the BNB Smart Chain ecosystem.

What is BEP-336?

BEP-336 introduces the concept of “Blob-Carrying Transactions” (BlobTx). A blob is a temporary and cost-effective memory segment designed to capture large data chunks, each up to 128 KB. These blobs streamline the network’s transaction verification process by allowing the network to verify the entire blob rather than individual transactions within it.

Key Features of BEP-336:

• Blob Market: Blobs have their own fee market, ensuring that storage and transmission costs are regulated based on network demand.
• Precompile Contract: This contract verifies that the data in a blob matches the reference in the blob-carrying transaction, adding an extra layer of security.

Benefits of Blob Transactions

• Enhanced Efficiency: Blob transactions significantly enhance the efficiency of Layer 2 rollups, leading to higher throughput, reduced fees, and improved network speed.
• Cost Reduction: By utilizing temporary storage for data blobs, transaction costs are lowered, making BNB Smart Chain more cost-effective for users.
• Data Markets: Secure and economical blob storage facilitates the development of vibrant data markets, incentivizing participants to share valuable data and fostering innovation.

Implementation and Impact

While BEP-336 draws inspiration from Ethereum’s EIP-4844, it is tailored to fit the unique architecture and requirements of BSC. Blob transactions on BSC are managed solely by the BSC client, ensuring efficient propagation and persistence.

Impact on Developers and Users:

• Developers: The introduction of blob transactions allows developers to build more scalable and efficient DApps that can handle large datasets directly on the blockchain.
• Users: Lower transaction costs and faster processing times improve the overall user experience on the BNB Smart Chain network.

By familiarizing yourself with these concepts and keeping up with the latest updates, you can better navigate the rapidly growing world of decentralized finance and blockchain technology.

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Please note that the Content may have been generated with the Help of AI. The editorial content of OriginStamp AG does not constitute a recommendation for investment or purchase advice. In principle, an investment can also lead to a total loss. Therefore, please seek advice before making an investment decision.