Quantstamp has audited Binance Smart Chain, a blockchain that runs parallel to Binance Chain optimized for blockchain applications.
Binance Smart Chain was created in order to incorporate DeFi into Binance’s blockchain ecosystem. Stablecoins, tokenized Bitcoin, lending pools, DEX aggregators, and other financial products are driving DeFi’s growth, which is approaching 10 billion USD worth of assets managed by these protocols. Binance intends to incorporate these applications into Binance Smart Chain to further contribute to this growth.
This development also comes at a timely moment due to high Ethereum gas fees. Individuals with relatively small holdings of digital assets are being priced out from participating in DeFi. This has the potential to entice users with modest funds to use DeFi applications on Binance Smart Chain.
Binance has also made it enticing for Ethereum developers to develop on Binance Smart Chain by maximizing its compatibility with Ethereum. Binance Smart Chain is:
- EVM compatible
- Supports existing Ethereum tooling such as MetaMask, Remix, and Truffle
- Modeled its BEP20 tokens similar to Ethereum’s ERC20 tokens
Instead of running smart contract applications directly on Binance Chain, Binance decided to create a parallel blockchain. This allowed Binance Chain to remain optimized for its primary use case, serving as a decentralized exchange.
Binance Smart Chain uses Proof-of-Stake Authority to achieve consensus. 21 nodes validate transactions on the network at a time. Every 24 hours, the validator set is updated based on who stakes the most BNB tokens. The validator set is managed by the Binance Chain similar to how the ETH 2.0 Beacon Chain intends to manage the validator sets for shard blockchains.
Quantstamp’s audit included Binance Smart Chain’s consensus mechanism, the relayers that manage cross-chain communication between Binance Chain and Binance Smart Chain, and genesis contracts. Quantstamp has also audited a number of other Layer 1 protocols including ETH2.0, Avalanche, and Cardano.