Binance 101 Introduction
Understanding Blockchain Functions
Let’s kick this guide off with a simple overview of what the Blockchain really is. The Blockchain is a decentralized ledger that records transactions across many computers. Blockchain ledgers are always growing as “completed“ blocks are added to them sequentially, creating a chain of blocks from the genesis block to the most recently completed block. The blockchain is the world’s leading software platform for digital assets, which has gained more and more popularity in recent years. Blockchain technology isn’t just about Bitcoin anymore- cryptocurrencies have proliferated with different features and purposes.
This Binance Blockchain 101 blog post will teach you all about blockchain technology and how it came into existence. You’ll also learn what crypto coins like Bitcoin or Ethereum are, why they exist at all, and the key differences between these two popular coins – including their network structure and coin supply. Blockchain technology has also enabled the creation of Binance’s very own token, known as the “Binance Coin.”
What Is the Binance Blockchain?
The Blockchain is the underlying infrastructure of the Binance Coin. The Blockchain, or “distributed ledger,” grew in popularity after its use with cryptocurrencies like Bitcoin and Ethereum. The Blockchain works by recording all transactions on a network in file batches called blocks (hence Blockchain). These blocks are then spread across the entire network of users, creating an ever-growing list of records that cannot be changed without changing every single record after it, which makes up at least 51% of the entire Blockchain network. This ensures accuracy and security for all transactions within the Blockchain. Blockchains are secure because they decentralize data storage amongst each user’s computer.
Each user can verify their copy against corruption or attempts to change historical records. All transfers between users need to be reviewed by the Blockchain. The Binance Blockchain is different from other blockchains because it is a public blockchain. This means anyone can see the details of every transaction, but there are benefits to this. For example, users can hold their own private keys and transact on the blockchain without involving a third party.
In addition, Binance Blockchain has a token called BNB that provides several key functions. First of all, holding the token allows for reduced trading fees with 50% off maker fees and 25% off-taker fees. I would also note that traders who pay their transaction fees with BNB will receive an additional discount of up to 50%.
The Blockchain uses proof-of-stake as its consensus mechanism, so holders must have enough tokens to be able to “stake” them. This means they must leave their coins staked (unspent) and not move them for a certain amount of time as determined by the Blockchain. The Blockchain does this because it increases security; if an account sees any movement, it will know that person is attempting to double-spend one of their transactions and reject it.
As Binance Blockchain continues to grow and develop new features, it remains committed to ensuring users retain decentralization and control over their funds. This can be seen in its decision to keep transaction fees low, which encourages adoption by those interested in transacting on the Blockchain. In addition, they have plans for zero trading fees.
The Differences Of Bitcoin & Ethereum
Because Bitcoin and Ethereum are the two most popular cryptocurrencies and blockchains, it makes sense to discuss and compare them and so we shall!
Bitcoin Basics
The Bitcoin network is a decentralized, public peer-to-peer payment system that enables users to send and receive bitcoins without the involvement of a bank. The digital currency, also known as a bitcoin token, is the sole cryptocurrency traded on the Bitcoin network and has the ticker symbol BTC.
The Bitcoin Blockchain represents a limited form of digital currency in which transactions can be traced back to a certain point of origin. To make this possible, Blockchain technology uses cryptography: Each transaction has a “digital signature” that shows where the funds came from. The “chain” part comes from how new transactions link seamlessly with prior transactions.
This creates a highly accurate record-keeping system that is publicly available but protects users’ privacy. This makes it difficult to commit illegal or fraudulent transactions.
Bitcoin Blockchain is decentralized, meaning that it doesn’t have a single point of failure. In effect, there is no central storage location for all transactions, and a hacker would have a much harder time gaining access to the Blockchain data.
The Blockchain also has very low latency or speed at which transactions can be processed. According to Blockchain.com, the average block time for Bitcoin is 10 minutes as compared with Ethereum’s average block time of 15 seconds. This means that Blockchain technology will continue to support higher transaction volumes in contrast with the Ethereum Blockchain.
However, transferring funds from one account to another during peak hours can lead to high fees. In addition, due to the Blockchain’s decentralized nature, transactions cannot be reversed, and there is no consumer protection.
Ethereum Basics
Vitlaik Buterin wanted to build on the Bitcoin blockchain in 2013 after traveling, interacting with bitcoin developers, and understanding Bitcoin’s limitations. The Ethereum Blockchain is an up-and-coming cryptocurrency that has the potential of surpassing Bitcoin. It is a decentralized peer-to-peer network that is open to the public.
It uses nodes, just like Bitcoin, and allows individuals to send and receive cryptocurrency—in this case, Ethereum. Ethereum and Bitcoin are completely different. Bitcoin uses a “proof-of-work” system which means that computers can only add new transactions to the Blockchain after they have solved a complicated math problem. In contrast, Ethereum uses a “proof-of-stake” system where users who own more coins have a higher chance of verifying a transaction. This makes Ethereum more efficient because it does not require as many resources to complete transactions. In addition, Ethereum Blockchain records contracts between users rather than actual currency transfers.
Ethereum Blockchain acts as a distributed supercomputer where developers can build virtually any decentralized applications they want. In contrast to Bitcoin Blockchain’s finite currency supply, the Ether coin does not have a maximum limit, making it easy to scale up.
Despite its higher efficiency and scalability, Blockchain technology on the Ethereum Blockchain is much less private than Bitcoin Blockchain because users must reveal their digital signature in order to use it. Ethereum also has a low latency: Blocks are created every 15 seconds instead of 10 minutes for Bitcoin.
However, Ethereum Blockchain is highly vulnerable to cyber-attacks due to the massive size of the network and its use of proof-of-stake rather than proof-of-work. To complete a transaction on the Ethereum Blockchain, users must have enough Ethereum tokens to cover their transaction fee. This means that someone would need to own or have access to 51% of the total Ethereum supply to successfully attack the Blockchain.
Ethereum Vs. Bitcoin Blockchains
In short, the Bitcoin and Ethereum networks are public, decentralized peer-to-peer networks with their own currency, bitcoins, and Ethereum, respectively. Both use digital ledger technology and depend on cryptography. However, their functions and capabilities are vastly different. Bitcoin is a digital currency and a decentralized payment mechanism. Its blockchain is a database that keeps track of all bitcoin transactions and who owns them.
Ethereum is more than just a payment system; it also allows for the creation of smart contracts and apps, making it a more advanced blockchain.
So Then...What Are BSC (Meme) Tokens?
When people think of blockchain technology, they often think of Bitcoin or Ethereum. And while both are extremely revolutionary forms of digital currencies, many other cryptocurrencies have been created that work in the same fashion. One specific type of cryptocurrency is called a Meme Coin, also known as BSC tokens. Not all meme coins are created equal, however.
The three most used types are Pepe Cash, Dogecoin, and Rare Pepes. Each meme coin has its own unique characteristics which differentiate it from the others.
Pepe coins were originally made when Pepe was brought to wider attention during the 2016 presidential election through “sad frog memes,” where users would post images depicting an angry Pepe standing behind Donald Trump with his pants at his ankles with the caption “He’s in charge now.” Since then, Pepe has become an overall symbol of internet culture, and with it, the concept of meme coins.
Pepe Cash is Pepe’s official currency and can be bought on exchanges like all other cryptocurrencies. It acts as a digital representation of value for the Pepesphere, which includes websites such as Reddit’s r/pepetraders and Facebook groups where users can buy, sell, or exchange Pepes. Each Pepe is given a unique identification number that cannot be duplicated within the blockchain, ensuring legitimate transactions between buyers and sellers.
Dogecoin was introduced after great social media fanfare surrounding Doge, a Shiba Inu dog whose owner used him to create well-known Doge memes. Doge was a cute, lovable dog who quickly became one of the most popular internet meme culture figures. In 2013, Jackson Palmer and Billy Markus created Dogecoin based on Litecoin’s open-source code to reflect this new fascination with cryptocurrencies and the culture surrounding them. It is created using similar algorithms as Bitcoin, but since transactions are faster and its value isn’t as high, it has a much faster transaction time than other cryptocurrencies.
Rare Pepes were introduced in 2017 by Josh Wise, a NASCAR racer for whom an artist designed a unique Pepe image. Since then, rarer Pepes have been added to the Rare Pepe Directory, which acts as a listing service for artists looking to add their own Rare Pepe card to this growing collection. The cards are traded in the blockchain, like Dogecoins and Bitcoins, but Rare Pepes can be used to buy services rather than products. The images on the cards themselves carry value because of the rarity of some and the popularity of others.
BSC tokens have a variety of functions depending on what they represent, whether it is a rare Crypto Kitty, a meme-based token like a rare Pepe, or a currency in an in-game economy. BSC tokens work best in their native environments where they have been created for use, but when listed on cryptocurrency exchanges, they will have a global reach that could create additional demand from users outside their original ecosystem.
What Is The Role Of The BSC (Meme) Tokens In The Crypto World
BSC tokens work like currencies in that they can be used to buy many things online just as you would with an American dollar or European Euro. Each BSC token is unique and cannot be duplicated within the blockchain, ensuring safe exchanges between buyers and sellers.
It also ensures people can’t use fake coins to trick those who are selling something valuable from them. One of its main purposes was originally for investing and making a profit when they rise in value after being bought low, but now many people are using them for regular online transactions.
Benefits of Blockchains Over Traditional Finance
Trustworthy- The blockchain is an immutable ledger that automates secure transactions between parties who do not know each other. Transactions are only carried out when both parties meet the specified conditions.
Immutable- A blockchain’s records cannot be altered or tampered with, and Bitcoin has never been hacked. A new block of transactions is added after a complicated mathematical problem is solved and validated by a consensus method. Each new block has its own cryptographic key, which is generated by combining the previous block’s contents and key into a formula.
Unstoppable- An initiated transaction cannot be reversed, changed, or stopped once the requirements set into the blockchain protocol are satisfied. Nothing — not a bank, not a government, nor a third party – will be able to stop it.
Lower Cost- In the traditional financial system, you pay third parties such as banks to handle transactions. The blockchain removes these middlemen and lowers costs, with some systems even returning miners’ and stakers’ fees.
Decentralized- The network is not managed by a single entity. Unlike centralized institutions, the blockchain relies on consensus to make decisions. Decentralization is important because it guarantees that people can easily access and create on the platform, eliminating points of failure.
Transparent- Because public blockchains are open-source software, anyone can inspect transactions and source code on them. They can even use the code to create new apps and provide suggestions for changes. Suggestions are either approved or rejected by a consensus.
Peer-To-Peer- Bitcoin and other cryptocurrencies allow you to transfer money to anyone, anywhere in the world, without the need for an intermediary such as a bank to charge transactions or handle fees.
Universal Banking- There are 2 billion people in the world who do not have a bank account. Because anyone can keep money on the blockchain, it’s an amazing way to bank the unbanked and protect against theft that can occur when currency is kept in physical locations.
In Conclusion
This brings us to the conclusion of our Binance 101 guide. Blockchain is a unique technology. As a result, more companies are starting to incorporate blockchain into their operations. After reading this article, you should have a basic knowledge of the Binance blockchain, the difference between Bitcoin and Ethereum systems, and what BSC or meme tokens are.
The main takeaway to remember is that blockchain is the most secure, decentralized network available for transferring or trading. This is because it is built using cryptography, the most secure method of encrypting a network.