Welcome to the world of Binance Smart Chain. This is the ultimate beginner’s guide to the two most powerful cryptocurrencies in the world: Binance Coin (BNB) and Binance Smart Chain (BSC).
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If you’re new to the world of cryptocurrencies, then this guide is for you. We’ll explore the basics of Binance Smart Chain and its benefits. Since we can’t talk about blockchain without talking about smart contracts, we’ll see what a smart contract is and especially how hackers were able to use this smart contract to hack and kneecap the DeFi Ring Financial, which was one of the most promising DeFi with a good project.
So, let’s get started with the basics of BNB Smart Chain.
What is Binance Smart Chain?
Binance Smart Chain (BSC) is an Ethereum-compatible blockchain that is powered by the BNB token. It is a decentralized platform that enables developers to create smart contracts and decentralized applications (DApps).
BSC is a fast, secure, and low-cost blockchain, and it is quickly becoming the go-to platform for developers who want to create and deploy smart contracts. It is built on the same technology as the Ethereum blockchain, but it is optimized for speed and scalability.
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The BSC network is powered by a consensus mechanism called Proof of Staked Authority (PoSA), which requires users to stake BNB tokens in order to validate transactions and secure the network. This makes BSC one of the most secure blockchains in the world.
Is Binance Smart Chain better than Ethereum?
Binance Smart Chain (BSC) is a blockchain platform that has become increasingly popular with developers, users, and businesses due to its low transaction fees, fast transaction speeds, and interoperability with Ethereum. BSC is a newer platform, so its user base is smaller and there are a few more bugs to be ironed out, but it is growing quickly.
When it comes to a comparison between BSC and Ethereum, there are a few key differences to be aware of. BSC offers faster transaction speeds, lower transaction fees, and it is more cost-efficient, whereas Ethereum is more established and has more features. BSC also does not require users to pay gas fees for transactions, instead, miners receive their rewards in Binance Coin (BNB).
When it comes to deciding which platform is better, it depends on the individual needs of the user. Both platforms offer different advantages, so it is ultimately up to the user to decide which platform is best for their needs.
What are the pros and cons of the Binance Smart Chain?
There are many benefits to using Binance Smart Chain. First and foremost, it’s a fast, secure, and cost-effective blockchain. Transactions on the BSC network are much faster than on the Ethereum network, and they are also much cheaper. This makes BSC the perfect platform for developers who want to create and deploy smart contracts quickly and cost-effectively.
In addition, BSC also offers a variety of other benefits. It is highly decentralized, and its consensus mechanism is designed to ensure that the network is secure and reliable. It also supports a wide variety of digital assets, including ERC-20 tokens, and its smart contract language is easy to understand and use.
Finally, Binance Smart Chain is an open-source platform, which means that anyone can access the source code and make changes as needed. This makes it easy for developers to create and deploy custom smart contracts on the BSC network.
However, it is important to note that BSC is highly centralized and heavily reliant on the Ethereum developer community, which could lead to potential security issues. Moreover, it is possible that the dependence on Ethereum’s developer community could cause a lack of innovation, as the blockchain is limited to the capabilities of Ethereum.
Understanding Smart Contract Technology
Smart contracts are digital contracts that are stored on a blockchain and are automatically enforced. They are self-executing contracts that are programmed to execute a set of instructions when certain conditions are met.
The main advantage of using smart contracts is that they are secure and reliable. Smart contracts are stored on the blockchain and are automatically enforced when the contract conditions are met. This makes them much more secure than traditional contracts, which are prone to human error and manipulation.
It should be noted that despite the security of smart contracts, they can be vulnerable to attacks by hackers. A scammer may exploit the smart contract using a malicious address that is recorded by the smart contract to make a zero balance send 1 unit of Ether. It will force the smart contract’s balance to cycle back to the maximum value allowed (4.3 billion Ether).
It was for example the case of RING Financial where a hacker exploited his Smart contract to proceed with his scam.
What’s Ring Financial
Ring Financial was one of the leaders DeFi, and was intended to be an all-in-one platform that would make it easier for everyone to get in touch with the world of cryptos. As you know, when you are a beginner, it can be quite difficult to take your first steps in crypto and make your first token purchase.
You would have to do a lot of research to differentiate the good projects from the scams so that you don’t buy tokens and lose your money. This can be quite difficult and can take a lot of time, especially for beginners in the crypto world. Ring Financial was therefore the ideal solution and will allow everyone to purchase tokens in virtual currencies without having any advanced knowledge in cryptocurrencies.
Ring Financial’s algorithms were efficient enough to identify the best opportunities in the market and purchase tokens directly with the Ring Financial Tokens of its users. The goal was mainly to allow noders to make a daily profit from their token purchase. Also, since DeFi was based on the Binance blockchain, it enjoyed better transaction fees compared to other DeFi.
Indeed, Ring Financial was successful and grew much faster than its creators had hoped. But, in December 5 2021, the platform’s Binance Blockchain Smart contract was exploited by a hacker and therefore their funds were drained. This led to its crash.
Was Ring Financial a scam?
No, Ring Financial was not a scam. It was a well-founded project that aimed to make buying tokens in DeFi easy and accessible to everyone by automating the entire purchasing system through its Ring Financial Token.
What actually happened was that a hacker breached their Binance Smart Contract and exploited the vulnerability of the contract, thus draining the liquidity pool. This is what allowed him to scam and commit fraud.
In this article, we have talked about Binance Smart Chain as well as its advantages for crypto enthusiasts. We retain that Binance Smart Chain has several advantages such as security, speed of transactions as well as low transaction fees.
We wish Ring Financial had been successful for longer to make cryptocurrencies even more accessible.