Binance’s BNB Chain Employs Optimism’s Power with Introduction of Layer-2 Testnet

Binance-founded blockchain BNB Chain has taken a significant step towards addressing its scalability challenges by introducing a new layer-2 chain called opBNB. Designed as a testnet, opBNB is a layer-2 scaling solution built on the Optimism OP Stack, aiming to enhance security and scalability within the Binance blockchain network.

This Ethereum Virtual Machine (EVM) compatible layer-2 chain allows seamless integration with Ethereum-based smart contracts, networks, and ERC-20 token standards. It aims to alleviate issues such as network congestion and high transaction fees that often plague blockchains during periods of increased demand.

Currently, BNB Chain claims to support around 2,000 transactions per second with transaction costs of approximately $0.10. However, opBNB seeks to significantly improve these metrics, boasting the capacity to handle over 4,000 transfer transactions per second at an average transaction cost lower than $0.005.

In addition to its scalability enhancements, opBNB offers optimizations for data accessibility, caching layer, and submission process algorithms, allowing for simultaneous operations. This includes increasing the gas limit to 100 million per block, surpassing the 30 million limit imposed by Optimism.

BNB Chain has positioned opBNB as its response to the scalability challenge that has hindered widespread adoption of blockchain technology. By leveraging Optimistic Rollups, which assume the validity of transaction data off the root chain, opBNB aims to achieve transaction scaling and improved efficiency.

The integration process is simplified through the RPC (remote procedure call) service layer, which provides a user-friendly interface for developers. This enables them to focus on application development without being burdened by the complexities of Layer 2 scaling.

While opBNB represents a significant milestone for BNB Chain, some industry experts, including Cinneamhain Ventures partner Adam Cochran, remain skeptical. Cochran raised concerns over BNB Chain’s scaling approach, stating that they centralized an Ethereum fork and increased the gas limit to an unsafe level. He suggested alternative options for BNB Chain, such as joining Optimism as a “superchain,” becoming a layer-2 directly on Ethereum, or even adopting a layer-3 solution like Optimism or Arbitrum.

Despite the skepticism, BNB Chain has already established itself as a prominent blockchain within the decentralized finance (DeFi) sector. It currently ranks as the third-largest blockchain in terms of DeFi total value locked (TVL), trailing behind Ethereum and Tron, with a TVL of $3.38 billion. Additionally, BNB Chain boasts a 24-hour trading volume of $264 million and a substantial user base of around one million active daily users, according to DefiLlama data.

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