5 things to know, BNB, BSC, Cryptocurrency, Virtual asset,
5 things to know about BSC
What is BSC?
BSC, or BNB Smart Chain, is a blockchain network launched by the cryptocurrency exchange Binance in 2020. It was previously known as Binance Smart Chain.
BNB Smart Chain supports BNB (standing for Build and Build), the native token of the BNB Beacon Chain. It was first created as an ERC-20 token on the Ethereum network in 2017 and was converted to BNB Beacon Chain native token in 2019. As of today, BNB ranks 5th on coinmarketcap.com with a $48,662,311,095 market capitalization.
BSC caught a lot of interest in 2021 which can be the result of the high congestion on Ethereum at that time causing expensive gas fees. Users turned to BSC as a cost-effective alternative in terms of gas fees. For instance, we can see below that the number of daily transactions on BSC started rocketing in early 2021. The same goes for daily transactions on BSC. Here are 5 things to know about BSC.
1 – BSC and BNB Beacon Chain
First, BSC is one part of the BNB Chain, the second part being BNB Beacon Chain. On one hand, BSC supports smart contracts and decentralized applications (DApps) just like the Ethereum network. On the other hand, BNB Beacon Chain powers high transaction volume with a 3-second block time.
2 – BEP20 token standard
Then, BSC also supports the BEP20 token standard which extends the ERC20 tokens standard, the most popular standard on Ethereum. Since BEP-20 provides a flexible format, developers can create a wide range of different tokens.
Examples of BEP20 tokens are PancakeSwap (CAKE), SafeMoon (SFM), Tether (USDT), and USD Coin (USDC).
3 – Peggy coins
BNB Smart Chain also supports ”Peggy Coins”. These tokens are tokenized versions of other crypto-assets such as Bitcoin or Litecoin for instance. Because these tokens are pegged to the original crypto-asset, it means the value should remain close to the native crypto-asset. This allows users to use these crypto-assets in DeFi applications for instance.
4 – BSC’s consensus
BSC relies on a proof-of-stake (PoS) consensus, like Tezos for instance. More specifically, users can stake BNB to become validators. Validators will then get transaction fees as a reward for each block validated.
5 – Ethereum compatibility
Last, BSC is compatible with Ethereum smart contracts and allows users to easily create DApps or even migrate them from Ethereum. As a result, BSC features a wide range of DApps and DeFi (decentralized finance) products.
For example, the blockchain supports several decentralized exchanges (DEX) platforms such as PancakeSwap or BurgerSwap allowing users to trade or exchange their tokens. But, users can also engage in decentralized lending, gaming, yield farming, etc.
Ensuring a safe onboarding of BSC
BNB Smart Chain is the latest addition to Scorechain’s line-up. Scorechain BSC Analytics platform helps compliance teams easily implement AML/CFT requirements on cryptocurrencies, including for BNB and BEP20 tokens, with features such as:
Risk scoring for addresses/transactions/entities and for incoming/outgoing funds (BNB and BEP20 tokens);
Risk indicators by transaction/behavior type or jurisdiction;
Exploration Tool to spot links with specific types of activities (exchange, DEX, scams, dark web…);
Entity Directory with due diligence performed on 700+ VASPs; and
Case Manager to follow cases from A to Z;
The solution helps companies operating with cryptocurrencies in their compliance journey, from crypto businesses to financial institutions and regulators. Would you be interested to learn more about the solution? Don’t hesitate to request a free demo.
Scorechain is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped more than 200 customers in 45 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.
Scorechain solution supports Bitcoin analytics with Lightning Network detection, Ethereum analytics with all ERC20 tokens and stablecoins, Litecoin, Bitcoin Cash, Dash, XRP Ledger, Tezos, Tron with TRC10 and TRC20 tokens, and BSC with BEP20 tokens. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.