In this article, we’ll be taking an in-depth look into the BSC smart contract. This article will explain everything you need to know about it, from its motivation to its potential uses. In order for smart contracts to function as intended, they must have an accompanying blockchain.
The blockchain acts as a digital ledger of all transactions that have taken place and is used to support the decentralized nature of the system. Without a blockchain, smart contracts cannot be implemented and are considered non-standard or “altcoins” in circulation.
The functions of smart contracts are still being verified, but many believe they could be used to resolve disputes between parties much like traditional law does today.
What is Binance Smart Chain?
BSC is a special type of blockchain that exists within a separate public chain called a decentralized autonomous organization (DAO). The core components of Binance are the blockchain, the digital wallet, and the distributed ledger technology.
Binance, like most blockchain platforms, uses Smart Contracts as the digital layer for decentralized trading. A Smart Contract is a program that runs on the blockchain and uses data stored in the blockchain as the basis for the operation of the contract. It therefore has the ability to execute a wide variety of functions based on what data is stored in the blockchain.
BNB & BUSD Tokens
Similar to the Ethereum network, the Binance Network uses the Ethereum-based tokens BNB and BUSD to represent blockchain assets. BNB tokens are created as a reward for hosting and registering The Binance Network (BNB).
BNB is not an investment or trading tool in and of itself but is instead a tool to incentivize hosting and using the Binance network. The Binance network holds a large number of tokens.
BNB Token Use Cases
This section will provide examples of how BNB tokens can be used within the Binance network. The first use case will be for user onboarding. New BNB tokens can be used as a reward for account holders who sign up for the platform and verify their identities.
The second use case will be for loyalty programs. Airlines and hotel chains that provide free rooms or meals to frequent travelers can encourage their users to sign up for frequent flyer programs with BNB tokens. Users who sign up for frequent flyer programs will have the ability to earn more frequent flyer points with each purchase made using the points.