Binance-founded BNB Chain has unveiled opBNB, a new layer-2 chain, to tackle scalability issues. However, some critics argue that alternative scaling solutions may exist for the network.
BNB Chain introduced opBNB on June 19, presenting it as a testnet for their new layer-2 scaling solution. Built on the Optimism OP Stack, it aims to enhance the security and scalability of the Binance blockchain network.
opBNB, the newly introduced layer-2 chain, is designed to be Ethereum Virtual Machine (EVM) compatible, enabling seamless integration with Ethereum-based smart contracts, networks, and ERC-20 token standards.
Also Read: Hong Kong’s First Digital Launches Stablecoin with Assistance from BNB Chain
By addressing common issues of network congestion and high fees experienced by blockchains during periods of heightened demand, BNB Chain aims to offer improved scalability. Presently, BNB Chain boasts approximately 2,000 transactions per second, accompanied by transaction costs averaging around $0.10.
As per the official announcement, opBNB demonstrates impressive capabilities, boasting support for over 4,000 transfer transactions per second. Notably, it achieves this with an average transaction cost that is lower than $0.005. These enhancements in transaction speed and affordability signify significant progress towards achieving a highly efficient and cost-effective ecosystem on the BNB Chain.
As blockchain technology continues to evolve, scalability remains a critical challenge.
But fear not! Enter opBNB, a game-changing Layer 2 scaling solution designed to overcome the limitations of Layer 1 (L1) networks.
Let's discuss opBNB below 🧵https://t.co/irYn1OPtfQ
— BNB Chain (@BNBCHAIN) June 19, 2023
opBNB introduces additional features that enhance its performance. It enables optimization of data accessibility, caching layer, and submission process algorithm, facilitating simultaneous operations.
This results in an increased gas limit per block, raised from Optimism’s 30 million to an impressive 100 million, further enhancing scalability and efficiency on the opBNB layer-2 chain.
Binance has positioned opBNB as its solution to the scalability challenge hindering widespread blockchain technology adoption. Leveraging Optimism’s Optimistic Rollups, opBNB scales transactions by assuming the validity of transaction data processed off the root chain until proven otherwise, thereby addressing scalability concerns effectively.
opBNB also includes an RPC (remote procedure call) service layer that streamlines the integration process with its user-friendly interface. This enables developers to concentrate on building applications without the burden of dealing with the intricacies of Layer 2 scaling, thereby facilitating a more seamless and efficient development experience.
We're already seeing the first wave of development on opBNB – who's next? 🤔 https://t.co/NnYmmMTP5Q
— BNB Chain (@BNBCHAIN) June 19, 2023
Adam Cochran, a partner at Cinneamhain Ventures, expressed skepticism about the development, stating that BNB Chain’s scaling problems arose from centralizing an Ethereum fork and raising the gas limit to an unsafe level. He further questioned the decision to launch an Optimism fork, suggesting alternative options like joining Optimism as a “superchain,” operating as a layer-2 directly on Ethereum, or even functioning as a layer-3 on Optimism or Arbitrum would have been more sensible choices.
As per DefiLlama, BNB Chain ranks as the third largest blockchain, trailing behind Ethereum and Tron, in terms of total value locked (TVL) in DeFi. With a TVL of $3.38 billion and a notable 24-hour volume of $264 million, BNB Chain also boasts a substantial user base of approximately a million active daily users.
Also Read: Binance CEO Denies Bitcoin Sales to Boost BNB Amidst Rumors
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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