Inside BNB Smart Chain: Jimmy Zhao Discusses Performance, Security, And Innovation
Jimmy Zhao, the Senior Solution Architect at BNB Chain, within the BNB chain ecosystem, was in a recent interview, 6/6/2024, with CCN Bitcoin analyst Andrew Kamsky to share insights on the BNB Smart Chain ecosystem.
Discussing technological advancements in smart contract technology and the role the BNB Smart Chain holds over the broader context of Web3 and blockchain innovation.
Zhao discussed the technical and operational aspects of the BNB Chain, discussing the chain’s high performance, affordability, and the unique features that separate it from its competitors.
Zhao’s Perspective on Bitcoin’s Role In The Web3 World
Discussing Bitcoin’s impact from 2009 to 2024, Zhao highlighted the significance of Bitcoin and its impact to introduce and familiarize the world with the Web3 ecosystem.
Zhaoexplained how, “The rise of the Bitcoin price makes more people get familiar with this Web3 world, especially for the non-tech users. The ecosystem will have better development in the long term.” This statement underscores the influential role Bitcoin has had in attracting attention and driving interest towards the broader blockchain space.
Zhao stated, “When we [crypto space] have more users who are, you know, Bitcoin enthusiasts or normal users joining with us, that means the ecosystem will have better development in the long term.” With this influx of new users and developers the overall growth and maturation of the blockchain industry results in more innovative solutions and applications built.
Zhao’s opinion was that Bitcoin was the catalyst for broader blockchain adoption.
The Importance Of BNB Smart Chain In Today’s Society
Zhao later explained about the role that BNB Smart Chain plays in the current blockchain industry, explaining the level of commitment to creating innovation. Jimmy explained that the “BNB chain does not only have one chain. BNB chain is an ecosystem that has multiple chains. The BSC, the BNB Smart Chain, is one of them. We aim to provide a permissionless and open infrastructure that allows anyone to build Web3 applications on top of it.”
Jimmy later explained the nature of the BNB Chain, explaining that the “BNB Chain provides a permissionless and open infrastructure allowing anyone to build Web3 applications on top of it.” Explaining that the BNB Smart chain is “kind of the portal that brings more people to start building on BNB.”
The point of this statement was to explain that developers and users have a versatile platform to create decentralized applications.
He further detailed the performance advantages of BNB Smart Chain, emphasizing the suitability for a wider range of applications due to the high capacity and efficiency of the BNB Smart chain, explaining that “The BNB Chain has high performance and a higher capacity for throughput. For example, our block size is bigger compared to Ethereum and the block time is shorter, just three seconds.” This focus on performance and reliability ensures that the BNB Smart Chain can support the growing demands of the blockchain community, making it an essential infrastructure in today’s digital landscape.
https://x.com/kamsky_andrew/status/1803765889206026390
“Proof-of-Stake Authority Mechanism Guarantees The Security of The Network” Says Zhao
When explaining the consensus mechanism of the BNB Smart chain, Jimmy Zhao provided an in-depth look into how BNB Chain ensures its network security and efficiency through the unique proof-of-stake authority (PoSA) mechanism. He stated that, “Proof-of-stake in the BNB chain is actually called a proof-of-stake authority mechanism. Anyone who wants to be a validator node needs to stake BNB to guarantee the security of the network.”
Jimmy then focused his explanation on the mechanics of the PoSA system, highlighting the selection process for validators being that “the BNB chain will select the top 45 validators from the network to produce the blocks every 24 hours. This means if you stake more BNB, you will get higher voting power to be selected as the active BNB validator.” This process not only ensures the network’s security but promotes a fair and competitive environment for validators.
Jimmy explained the economic incentives tied to this mechanism, which he believes improve the overall robustness of the network, explaining that “it’s kind of the economic incentives or economic mechanism to guarantee the security. If anyone or any attacker wants to attack the network, they have to pay a higher cost than the benefits they would get to hack the chain.” This economic model aligns malicious activities economically unviable.
By adopting the PoSA mechanism, BNB Chain aims to combine the best elements of Proof of Stake with additional authority measures to maintain a high level of security and efficiency. Jimmy noted, “The security of the network is guaranteed by this economic mechanism, and the decentralization level of a blockchain actually depends on how much value has been staked by different stakers.”
“BNB Chain Focuses On Performance, Reliability, And Ease Of Use” States Zhao
Jimmy stated the importance of making blockchain technology accessible and affordable globally. Jimmy stated, “we [BNB Smart chain] believe that blockchain technology should be affordable and easy to use for developers and users worldwide. This is why we focus on optimizing performance and making the network as reliable as possible.”
Prioritizing ease of use and reliability is a must and the BNB Chain is aiming to lower barriers to entry for developers and businesses, ensuring a user-friendly environment that facilitates efficient and effective blockchain solutions.
“The BNB Token Is Deflationary” Says Zhao
Discussing the token model, Jimmy Zhao highlighted the unique deflationary nature of BNB token, stating, “The BNB token is deflationary and the BNB supply is decreasing over time as the BNB team regularly conducts burns. Unlike many protocols, there is no block subsidy of freshly minted BNB.” This approach contrasts sharply with other blockchain protocols, including Ethereum, which have different mechanisms of token supply.
A deflationary model adopted by BNB basically means that it is a design to reduce the total supply over time, potentially increasing the value of the remaining tokens and benefiting long-term holders.
In comparison to Ethereum’s model, Ethereum has recently transitioned to a proof-of-stake consensus mechanism and introduced EIP-1559, which includes a base fee burn mechanism. However, despite this burn mechanism, Ethereum still has an inflationary component as new ETH is continuously minted as block rewards for validators.
Jimmy’s emphasis is that the BNB model controls inflation and provides a more predictable economic environment for investors and developers within the BNB Chain ecosystem.
“Developers Can Easily Migrate Their Projects From Ethereum To The BNB Smart Chain” States Zhao
On performance, Jimmy Zhao confidently stated, “I think the BNB Smart Chain is one of the top or highest performance EVM-compatible blockchains within the ecosystem.” Jimmy reiterated that because the BNB Smart Chain’s architecture is designed to deliver high throughput and efficiency, the chain’s ability to handle a large number of transactions quickly and reliably sets it apart from many of its competitors.
The EVM compatibility of the BNB Smart Chain plays an important role in the appeal to developers. Jimmy explained that the “BNB Smart Chain is fully EMV-compatible, which basically means developers can easily migrate their projects from Ethereum to BNB Smart Chain without significant modifications.” This compatibility is because developers use Solidity, the same programming language used on Ethereum, to write smart contracts on BNB Smart Chain.
This common denominator enables developers to benefit from BNB Smart Chain’s performance improvements and lower transaction fees while leveraging the existing knowledge and codebase.
Zhao On the Integration And Interoperability Of BNB Smart Chain
Explaining further, Jimmy said, “If you are building a Web3 application, usually it has three different layers being the front end, the business logic layer, and the storage requirements. Within the BNB chain ecosystem, these complexities can be abstracted away using the One BNB paradigm.”
The One BNB Paradigm approach allows developers to use the same wallet address and BNB tokens across BNB Smart Chain (BSC), BNB Greenfield for decentralized storage, and OPBNB for layer two scaling solutions.
By unifying these layers, the One BNB paradigm reduces the need for managing different accounts and authentication mechanisms, thereby streamlining the development process and enhancing the efficiency of deploying Web3 applications.
Jimmy Zhao’s Vision for Blockchain Technology in the Next Decade
Jimmy finally shared his long-term vision where he believes “that blockchain technology provides our society a way to exchange values and grounds every individual to control their own assets. The adoption of blockchain technology for every walk of life will come in the next decade. Billions of users will come to Web3 in the coming decades.”
Jimmy Zhao’s insights paint a comprehensive picture of the BNB Chain’s innovative approach and its potential to revolutionize the blockchain landscape. Jimmy’s optimism about the future of blockchain technology is a testament to the ongoing advancements and the promising prospects of the BNB Chain ecosystem.
