What is Binance Smart Chain
Binance Smart Chain is a blockchain that runs parallel to the Binance Chain and boasts smart contract compatibility and functionality. BSX is not a layer 2 scalability solution for the Binance Chain, but an independent blockchain which is capable of running on its own. BSC however, has Ethereum Virtual Machine (EVM) compatibility, which allows developers to have their projects ported over from Ethereum. The chain was launched with the support of the dapps and Ethereum tools’ rich universe. The platform also makes it easy for users to configure applications like MetaMask.
The Influence of the GameFi Industry
The GameFi industry has experienced a lot of growth this year and BSC has been one of the most popular platforms for blockchain gaming. This is largely due to its cheap and fast transactions and thriving community especially from Southeast Asia.
Data shows that on a single day, there are around 14.7 million transactions on BSC, an accomplishment that was achieved on Nov. 17, 2021. The transaction amount is one that no other blockchain project has been able to achieve so far.
Binance Smart Chain hosts a combination of the retail friendly meme components of key platforms such as PancakeSwap. Therefore, casual users are very comfortable using the platform. PancakeSwap, the main decentralized exchange on BSC is modeled after syrup and pancakes, with cute graphics which are very attractive to newbies. These users are therefore comfortable using the BSC platform.
There are also many other attractive platforms on BSC such as Venus, Belt Finance and Alpaca Finance, which are lending and earning protocols. Such have also attracted a lot of users interested in cryptocurrency loans and rewards attached to locking tokens on a platform. These lending and earning protocols have retained high total value locked (TVL), an indication of high user demand.
DeFiStation, a DeFi leaderboard and analytics website for decentralized finance projects building and operating on Binance Smart Chain documents that DeFi protocols on BSC are sustaining TVL between $700 million to $17 billion, which is the amount of money locked.
The Asian influence and preference for BSC is also linked to the number of DeFi protocols that are choosing to launch on BSC compared to other launch pads. Crypto games particularly from Vietnam have attracted a lot of following, most of which have been launched on Binance Smart Chain.
Additionally, Binance has super heavyweight projects that support developers and users such as the $1 billion growth fund for the BSC ecosystem as well as the flagship programs; most valuable builder I II and MVB incubation program. The goal of these projects is to attract the most promising and demanding applications and support the best. Therefore, more projects in the GameFi sector have been attracted to the project, catapulting its growth and influence in the blockchain space.
Data from Dappradar indicates that two of the five most popular blockchain games based on user activity are Alien World and Crypto Mines, which are both based on BSC. Other games in the top ten list based on BSC are Bomb Crypto, Mobox and BinaryX.
The demand for blockchain games has continued to soar, largely due to the rewards attached to them. Therefore, venture capital firms have joined the playing field, offering funding to these protocols to launch on Binance Smart Chain. For instance, In September, Binance Labs, the investment arm of Binance, made its first investment in the play2earn and metaverse space by supporting Decentral Games with funding worth $100 million.
Binance Smart Chain continues to experience widespread growth and popularity hugely due to the number of gaming protocols on the platform. Decentralized games have attracted many newbies into the blockchain space, most of whom are interested in the reward system as well as lending options that these sites offer. Therefore, since most of these have been launched on BSC, it is a no-brainer where the newcomers will set camp.