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How Binance Smart Chain (BSC) works?

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Consensus

BSC employs a Proof-of-Stake consensus algorithm, known as Proof of Staked Authority (PoSA), enabling approximately 3-second block times and allowing participants to stake BNB and become validators.

Valid block introductions entitle participants to transaction fees from the included transactions, without any freshly-minted BNB block subsidy due to the non-inflationary nature of BNB. In fact, the BNB supply decreases over time through regular coin burning.

Cross-Chain Compatibility

Binance Smart Chain (BSC) is designed as an independent yet complementary system to Binance Chain, employing a Dual-chain architecture for seamless asset transfers between blockchains. This enables fast trading on Binance Chain while facilitating the development of decentralized applications on BSC.

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