What is BNB Smart Chain?
BNB Smart Chain (BSC) is a blockchain developed by Binance that runs parallel to the Binance Chain. It is fully compatible with the Ethereum Virtual Machine (EVM), meaning Ethereum smart contracts and tools work on BSC without modification.
Key specifications
| Feature | BNB Smart Chain | Ethereum |
|---|---|---|
| Block time | 3 seconds | 12 seconds |
| Typical gas fee | $0.01–$0.10 | $5–$50+ |
| Consensus | Proof of Staked Authority | Proof of Stake |
| EVM compatible | ✅ Yes | ✅ Native |
| Native token | BNB | ETH |
BSC's DeFi ecosystem
BSC hosts hundreds of DeFi protocols, with PancakeSwap as the dominant DEX. The chain's low fees make it accessible for smaller deposits — a $100 deposit on BSC incurs less than $0.10 in fees, whereas on Ethereum the same deposit might cost $20+ in fees.
Why BSC is popular in emerging markets
BSC's low fees make DeFi accessible to users in Asia, Africa, and Latin America where smaller deposit sizes are common. PancakeSwap's daily volume regularly exceeds $1 billion.
BNB token
BNB is the native token of BNB Smart Chain, used to pay gas fees. You need a small BNB balance (typically $1–$5 worth) to interact with any BSC DeFi protocol.