What is Binance Smart Chain?
Getting started with DeFi on BSC
By Wendy’s Whitepaper contributor @LibertyRaider
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Binance Smart Chain (BSC) is a blockchain running parallel to Binance Chain (BC) that has smart contract compatibility with the Ethereum Virtual Machine (EVM). The goal was to have the high throughput of Binance Chain while introducing smart contracts into its ecosystem. In short, the result is a fast EVM clone with cheaper gas fees.
Both BSC and BC operate side-by-side and BSC is not a layer two solution. It is an independent blockchain that can run even if Binance Chain went offline. Because BSC is EVM-compatible, it makes it easy for developers to port projects from Ethereum. For users, this means apps like MetaMask can be configured to work with BSC.
Funding Your Wallet
Connect MetaMask to BSC to get started. Take a deeper dive and learn about other wallets at Binance Academy.
The most important thing to understand when getting started with BSC is the BEP-20 token. If you understand the concept of ERC-20 Tokens, then you will already be familiar with BEP-20 tokens. It uses the same functions as its Ethereum counterpart.
Ethereum uses the ERC-20 standard while Binance Smart Chain uses BEP-20. Just as Ethereum uses ETH for transaction fees, BSC uses BNB. So, the first thing we need to do is put some BNB in our new wallet.
The easiest way to fund your wallet is to transfer BNB from an exchange that supports BEP-20 withdrawals. Always remember…
ERC-20 goes to Ethereum wallets
BEP-20 goes to BSC wallets
Converting ERC-20 tokens to BEP-20 tokens and vice versa can be done with the Binance Bridge. If you are unfamiliar with the way a bridge works, follow the instructions in the User Guide.
Using Binance Smart Chain
Now that we have our wallet funded, we can participate in the growing DeFi space by interacting directly with the blockchain.
Read: MetaMask safety and best practices in DeFi
PancakeSwap allow users to trustlessly exchange assets, much like Uniswap, and engage in yield farming and staking. Similar projects include BurgerSwap and BakerySwap. We can also access dApps like Beefy Finance that use yield optimizers and auto-compounding to realize some very lucrative gains.
If you are new to crypto, get used to seeing food themed dApps. If you are taken back at first, remember the giant that is Google has been naming operating systems after foods like marshmallows and cupcakes since the year 2009.
Watch this video with WendyO and BleedingCrypto for some BSC DeFi alpha.
Oh, and by the way… welcome to the world of NFTs. We will write more about that in future articles. In the meantime…
Watch this video with WendyO and CryptoStache for tips on NFT platforms.
If you found this helpful, feel free to follow me on Twitter @LibertyRaider or toss a few shekels in the tip jar.
BTC: bc1qzq3res0wkltm6j05l33qvl0fe87sk86h2mafjy
ETH: 0xe663D93cab721ed5451B3d35d0386Dd09124cf57
BNB: 0x3036a2C5B8677848d08262D815783bc35C538ef0
Wendy’s Whitepaper Disclaimer: Please be advised that I own a diverse portfolio of cryptocurrency assets, and anything written or discussed in connection to cryptocurrencies– regardless of the subject matter’s content– may represent a potential conflict of interest. I wish to remain transparent and impartial to the cryptocurrency community at all times, and therefore, the content of my media are intended FOR GENERAL INFORMATION PURPOSES ONLY. Nothing that I write or discuss should be construed, or relied upon, as an investment, financial, legal, regulatory, accounting, tax, or similar advice. Nothing should be interpreted as a solicitation to invest in any cryptocurrency, and nothing herein should be construed as a recommendation to engage in any investment strategy or transaction. Please be advised that is in your own best interests to consult with investment, legal, tax, or similar professionals regarding any specific situations and any prospective transaction decisions.