Binance Smart Chain has been thriving, with projects filling up around the blockchain. As a result of its dual chain structure, BSC allows its users to develop their digital assets and dApps like trust wallets on a single API and mainnet network and take advantage of the fast Dex trading to transact. However, as the smart chain network advances, it becomes vulnerable to hackers.
Some BSC-based projects have already been hacked, so conducting a smart contract audit on these programs is critical for different types of blockchain, including Ethereum. Let’s learn more about the BSC concept.
What is Binance Smart Chain?
BSC (Binance Smart Chain) is a blockchain that operates simultaneously with the Binance Chain. BSC exhibits smart contract compatibility and functionality with the EVM (Ethereum Virtual Machine). The design objective, in this case, was to ensure the high output of the Binance Chain remains unharmed during the introduction of smart contracts within its ecosystem.
BSC is an EVM-compatible component that launched with DApps and Ethereum tools, enabling developers to harbor their projects from Ethereum. For users, it indicates that MetaMask can be configured to operate with Binance Smart Chain with ease.
Is Binance Smart Chain Tendermint?
Binance Chain leverages the Tendermint BFT (Byzantine fault-tolerant) consensus mechanism, commonly used on the Cosmos blockchain. Cosmos Blockchains and Binance Chain share a consensus procedure, the transaction validation, and the PoS (Proof of Stake on Cosmos.
How Binance Smart Chain Works
The BSC initiates the Bep-20 tokens standard that enables developers to build and distribute testnet tokens capable of representing multiple types of assets. These assets range from real-world alternatives like real estate to distributed block tokens. BEP-20 tokens are considered the BSC version of the ERC-20 that Ethereum (Eth) initially introduced in 2017. BSC comes with a wide range of features, as seen below.
One of the initial benefits that BNB (Build and Build), previously Binance Coin, token holders realized was the power to stake tokens. The Binance Smart Chain directly supports staking from the network’s cross-chain wallet. Staking is among the popular DeFi and Metaverse options available in the market today. Users can gain rewards with minimal effort when they stake their BNB.
· NFT Design and Support
BSC has penetrated the NFT market. NFTs are some of the fastest evolving blockchain sections that offer an additional scarcity layer to digital assets. Currently, some NFTs are selling for thousands and millions of dollars.
· Pegged Coins
Pegged coins have received lots of attention in recent times. These coins acquire value from other assets, multi-chain currencies, or cryptocurrencies. For example, it can be attached to precious metals like fiat currencies or gold.
· Consensus Mechanism
The Binance Smart Chain gains lots of efficiency and speed from utilizing a PoA (Proof of Authority) consensus mechanism. Unlike the Proof of Work concept such as Ethereum, a PoA network relies on nodes to execute transaction fee approvals. This method is more centralized than proof of work networks such as Bitcoin (BTC), Polygon, and Solana. However, they offer fast block time and transaction times while boosting liquidity and scalability.
Why BSC is so Popular?
A blend of the retail favorable trend elements of core platforms such as PancakeSwap enabled casual users to use BSC, explaining its popularity.
The BSC ecosystem comes with multiple participants and parts, each featuring different threats, including the algorithm and code, projects based on BSC, validators and their hardware, and the users.
The Binance Smart Chain algorithm and network are safe. BSC boasts a track record clear of hacks or incidents. That indicates that there are no attack vectors or risks that can be misused on the blockchain. Security projects and teams motivated by the premium program usually test each BSC component’s security regularly. Doing so helps identify issues and fix them before they escalate.
Does Binance Smart Chain use BNB?
Binance, a leading exchange in trading volume, recently renamed its blockchain network to the BNB Chain. Further, Binance has transformed its native token name to BNB.
What is Binance Smart Chain Coinbase?
BEP-2 is a blockchain that Binance created to enable its customers to send assets faster. Deposits made from the Binance Chain into a coinbase account are hardly be developed, and you will lose money. For instance, the world supports ERC20 tokens such as USD or BUSD coins within the Ethereum network.
What is the Difference between the Binance chain and Binance Smart Chain?
Binance Chain leverages DPoS (Delegated Proof of Stake), while Binance Smart Chain uses PoSA(Proof of Staked Authority). Users in the PoSA network stake their reputation and identities while the PoS algorithm encourages users to verify their network data after staking some surety.
What is Binance CeDeFi?
CeDeFi is a word the Binance CEO coined to define a blend of solutions between centralized and decentralized oracle finance. Binance Smart Chain is an excellent example of a CeDeFi.
Audit of a Smart Contract on BSC
An innovative contract process audit is similar to the traditional DeFi audit. Auditing Binance Smart Chain covers various ranges for user privacy which are:
- Business logic
- Protection of core architecture security
- Data maintenance
The process is designed to guarantee the stable and safe running of the exchange sector.
Steps to a BSC Smart Contract Audit
The auditing process is classified into the following steps.
· Project Orientation
Auditors will need to meet with the development team to learn about the fundamental architecture of the BscScan Smart Contract.
· Automated Evaluation
The auditing team leverages dynamic evaluation tools to perform an automated assessment. Identifying bugs early in the test suite crucial to the Apps is highly recommended.
· Manual Evaluation
Manual evaluation applies the standard software guidelines like code structure, prevention of duplicated code, and code structure.
· Known Risk Evaluation
Some risks occur regularly in the crypto industry. These include gas fee limit issues, re-entry, and timestamp dependencies. Developers have to test for them separately to rule out their presence.
· Initial Audit Report
Once these steps are finalized, auditors will document their findings in a report and provide recommendations for their clients to assess.
· Code Refactor
After the first audit report, developers will make the ideal changes, fix bugs, and present it to the auditors for the last review.
· Final Audit Report
Once all fixes are complete, the team merges all the analysis and details into a report before presenting it to the client. Remember, these steps may vary based on the client’s needs or the auditing teams.
BSC is a robust blockchain network that has evolved fast between 2020 and 2021. It has minimal innovation than Ethereum, but many users have adopted it more than other blockchain options. Find SaaS developer who will help you understand ongoing advancements in the blockchain and crypto worlds.