Binance’s BNB Chain has introduced a new layer-2 chain called opBNB, aimed at addressing the scalability challenge faced by the blockchain.
The layer-2 scaling solution is built on the Optimism OP Stack, providing enhanced security and scalability to the Binance blockchain network. opBNB is an Ethereum Virtual Machine (EVM) compatible layer-2 chain, ensuring compatibility with Ethereum-based smart contracts, networks, and ERC-20 token standards.
One of the common issues faced by blockchains is network congestion and high fees during periods of increased demand. Currently, BNB Chain claims to support approximately 2,000 transactions per second with transaction costs around $0.10.
With opBNB, it can reportedly handle over 4,000 transfer transactions per second at an average transaction cost below $0.005.
opBNB offers various optimizations, including improved data accessibility, caching layer, and an adjusted submission process algorithm that allows simultaneous operations. It can increase the gas limit per block to 100 million, surpassing Optimism’s limit of 30 million.
Binance referred to opBNB as their solution to the scalability challenge that has hindered widespread adoption of blockchain technology.
Optimism’s use of Optimistic Rollups enables transaction scaling by presuming the validity of transaction data processed off the root chain until proven otherwise.
The RPC service layer simplifies integration through a user-friendly interface, allowing developers to focus on building applications without being concerned about the complexities of Layer 2 scaling.
However, some individuals, including Cinneamhain Ventures partner Adam Cochran, expressed skepticism about BNB Chain’s approach. Cochran mentioned that BNB Chain encountered scaling issues by centralizing an Ethereum fork and raising the gas limit to an unsafe level.
He proposed alternatives, such as joining Optimism as a “superchain,” becoming a layer-2 directly on Ethereum, or even a layer-3 on Optimism or Arbitrum.
Despite the debate surrounding opBNB, BNB Chain holds a prominent position in the blockchain space.
According to DefiLlama, it is the third-largest blockchain in terms of DeFi total value locked, trailing behind Ethereum and Tron. BNB Chain boasts a TVL of $3.38 billion, a 24-hour volume of $264 million, and approximately one million active daily users.
In summary, Binance’s BNB Chain has introduced opBNB, a layer-2 chain based on Optimism, to tackle scalability issues.
While there are differing opinions on the chosen approach, BNB Chain remains a significant player in the blockchain industry, attracting a substantial number of users and demonstrating considerable value in the DeFi space.
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