What Is opBNB? BNB Chain’s Optimistic Layer 2 Chain Explained!

Today. I'm going to explain what OpBNB is. We're going to dive Into the things that you need to know
about being be change optimistically Or to change. My name is Trevor with CMC
and let's dive right in. Binance and BNB, founded by Changpeng
Zhao, also known as CZ, Launched in July of 2017 and quickly rose To dominance as the top
centralized exchange in the industry. BnB was first launched
as an early token on the Ethereum network. However, by 2019 It migrated to the Binance chain,
which was built on Cosmos Tendermint. However, this chain was largely used only
for governance, voting and validation As decentralized finance
picked up in the DeFi summer of 2020. Binance's launched their second
blockchain, the Ethereum Virtual Machine Or EVM compatible Binance
Smart Chain or BSC in September of 2020. In February of 2022, Binance
announced the rebranding of Binance chain And also a Binance Smart
chain to BNB chain, which stands for Build And Build the layer 1 or underlying
blockchain for Binance is being relaunched As part of a strategy to connected
to the protocols governance token BNB In order to strengthen and further
decentralized finance CEO said, people Always think of BSC as part of Binance
because it carries the company's name. We've done a lot of work To decentralize it and also hope
to make BNB go beyond binance's. To date, Binance has invested More than $1 billion to support the growth
of the BNB chain ecosystem. The latest development is the launch of
its very own layer two scaling solution BNB built on Optimism Stack. What is BnB chain? BnB chain is an Ethereum virtual machine
or EVM compatible blockchain Designed to support smart contracts
in order to compete with the Ethereum Blockchain, which is the leading
blockchain for DeFi applications. After the rebrand, that BNB chain
comprises BnB Beacon chain previously Binance Chain, use for Governance
and the BNB smart chain or BSC. Previously Binance Smart Chain and EVM
compatible Chain providing consensus.

The chain offers a lower transaction fee
and higher transaction speed environment Through DeFi users, while enabling
developers to easily expand or migrate Their decentralized applications
or DApps to the new chain. The familiar environment also allowed
aspiring developers to quickly set up shop Without having to compete Directly with the already established
protocols on Ethereum. This proved to be true as new protocols
such as Pancakeswap, Venus, APE Swap and Alpaca finance emerged
and dominated the chain. Coupled with the backing and support
from Binance, the BNB chain quickly Grew in popularity, seeing the total value
locked or TVL on the chain And growing exponentially
on the tailwinds of DeFi summer BNB Chain is currently third,
with $3.38 billion in TVL behind Just Ethereum at 25.95 billion
and Tron at 5.66 billion respectively. Now let's talk about it
beyond being a new era of scalability. In 2022, Layer two or L2 solutions begin
to gain traction as developers and users Begin to recognize scalability
as a real problem For monolithic blockchains, which at that
point were most of the leading layer. One chains rollups Built on Ethereum, such as arbitrage
and optimism, gained significant attention And quickly rising to become popular
ecosystems in the DeFi space. BNB chain made an announcement
in June of 2023 to introduce Their very own L2 solution
at BNB in a move to further scale BSC. OpBNB is designed Based on the optimism app stack in open
source code base with modifications To meet the needs of BSC, OpBNB adopts
the optimistic rollup architecture, Abstracting the execution layer
into its own layer While the remaining blockchain
functions are handled by the L1. In this case the BNB Smart chain. The OpBNB layer processes
transactions off chain And post transaction
data back onto the L1 as call data, Enabling higher transaction speed
and lowered gas fees for users on the L2. Just like other rollups OpBNB uses the gas Token of the L1 chain,
which is the BNB token. Now let's talk about building on the OP
stack.

OpBNB introduces optimizations in data
caching Block mining into the derivation
layer to meet their needs. OpBNB optimizes
the way that data is cached on the chain By adding an additional layer
in the cache. This increases the cache hit range,
which reduces the need to query The database directly, hence increasing
efficiency of retrieving data on OpBNB. Only block mining front. A traditional OpenStack
chain executes transactions twice In a standard block production process. This is redundant and can require
hundreds of milliseconds in execution Time with each block. OpBNB optimizes this by storing
the results of the first execution In the cache instead of executing
the transactions again, Hence cutting down on additional execution
time in block production. Finally, OpBNB
increases the efficiency of the batcher By introducing asynchronous batch
submission, which allows the batcher To submit batches of transactions
without waiting for confirmation. This removes the bottleneck
caused by waiting for confirmation Before the next batch of transactions
is submitted. A process will be put in place
to watch for a reorg on the L1, After which the batcher
will resubmit the affected transactions. These optimizations enable OpBNB to
allegedly achieve a 4000 transactions per Second on the chain and keep transaction
fees on the chain To a near USD of 0.005. The chain's high transaction
processing ability And low transaction fees could make it
the perfect chain for gaming, Which is a key sector
that OpBNB seems to be targeting. The OpBNB Testnet has been live since June
19th of 2023 And is open for feedback from developers
and also testers. Now let's talk about the benefits of OpBNB
for developers and users. The new OpBNB chain enables
the BNB chain ecosystem to achieve higher Transactions per second than before,
while maintaining its EVM Compatibility, which was a key element
to its original success. Moreover, it will natively integrate
with the existing BSC, which will enable

The use of ecosystem assets
such as a BNB natively on OpBNB. Additionally, by building on the OP stack
developments made to the copies Will directly benefit
and forward the development of OpBNB, and In return, developments made by OpBNB
can also contribute Directly to the development of the LP
Stack code base. In fact, the OpBNBteam has already made
several contributions To the OpenStack code base,
including the removal of unused functions And the addition of the abort
field payload confirmation. That said, it is still currently unclear
if OpBNB will be part of its optimism. Super chain ecosystem. So we hope you guys learn something
and that's all we have for today. Thanks for watching
and we'll see you guys in the next one.

Coinbase
OUR TAKE

Coinbase is a popular cryptocurrency exchange. It makes it easy to buy, sell, and exchange cryptocurrencies like Bitcoin. Coinbase also has a brokerage service that makes it easy to buy Bitcoin as easily as buying stocks through an online broker. However, Coinbase can be expensive due to the fees it charges and its poor customer service.

Leave a Comment

    • bitcoinBitcoin (BTC) $ 26,908.00 0.04%
    • ethereumEthereum (ETH) $ 1,670.47 1.17%
    • tetherTether (USDT) $ 0.999986 0.02%
    • bnbBNB (BNB) $ 214.73 0.02%
    • xrpXRP (XRP) $ 0.516699 1.21%
    • usd-coinUSDC (USDC) $ 1.00 0%
    • staked-etherLido Staked Ether (STETH) $ 1,669.68 1.07%
    • dogecoinDogecoin (DOGE) $ 0.062000 0.92%
    • cardanoCardano (ADA) $ 0.250158 0.06%
    • solanaSolana (SOL) $ 20.26 0.43%