Binance Chain is launching a second, smart contract-enabled chain that will use Ethereum’s Virtual Machine to let its developers build decentralized apps.
Binance Chain developers have proposed specifications for a new blockchain that would enable complex smart contract functionality within the Binance Coin (BNB) ecosystem. The specifications are available in itswhite paper) released on April 17.
The new Binance Smart Chain will be independent, but tightly integrated with the original Binance Chain. The team explains that it had to create a new chain in order to maintain the high performance of the original, which hosts the Binance decentralized exchange.
The white paper notes that “the execution of a Smart Contract may slow down the exchange function and add non-deterministic factors to trading.” To prevent this, the team is instead launching an independent Ethereum-compatible smart contract blockchain.
Though separate, they will be connected through a cross-chain bridge for BNB, which will act as the native token in the new smart contract platform.
The Smart Chain will thus allow projects in the Binance ecosystem to build complex DApps based on Ethereum’s Virtual Machine. The team said that this was an often requested feature from projects in its ecosystem.