[Imota Cryptopedia] Exploring The New BNB Chain Layer 2 Blockchain Solution

[Imota Cryptopedia] Exploring The New BNB Chain Layer 2 Blockchain Solution

21/06/2023
4 minute read

BNB Chain has released the opBNB testnet, an Ethereum Virtual Machine (EVM) compatible blockchain based on Optimism's OP Stack. opBNB is expected by developers to reach speeds of 4,000 transactions per second at a cost of only $0.005 per transaction.

BNB Chain launches Layer 2 based on Optimism's technology

BNB Chain, the blockchain ecosystem backed by Binance's BNB token, has just launched a testnet for a layer-2 network called opBNB.
opBNB is BSC's answer to the scalability challenge that has limited the widespread adoption of blockchain technology. As a layer 2 chain compatible with the Ethereum Virtual Machine (EVM), the opBNB solution is built on top of the Optimism OP Stack to further enhance the scalability of the BSC while maintaining low fees and security.
Optimistic Rollups are suggested to offload the main chain by executing transactions off-chain and posting only on-chain transaction data as calldata. This approach greatly improves scalability, by pooling multiple transactions together before submitting them to the main chain.
The current speed of Layer 1 BNB Smart Chain is around 2,000 transactions per second, and the average cost per transaction is around $0.109, said Arnaud Bauer in The Block’s interview, senior solution architect at BNB Chain. However, opBNB is expected to support more than 4,000 transactions per second, and the average cost per transaction will be less than $0.005, Bauer said.
BNB Smart Chain is part of the BNB Chain ecosystem, along with:
  • BNB Beacon Chain (staking and governance layer of the BNB Chain ecosystem);
  • BNB Greenfield (decentralized data storage system);
  • zkBNB (a Layer 2 network based on Zk-Rollups) - also in testnet, after being launched in September 2022.
It is expected that opBNB will launch the mainnet in the third quarter of 2023.

opBNB compatible with EVM

When asked why BNB Chain is launching another Layer 2 network, Bauer said “zkBNB is not compatible with EVM, while opBNB does, which will help the ecosystem grow even more.” EVM compatibility refers to the ability of a blockchain to support and interoperate with applications developed for blockchains that are compatible with the Ethereum computing environment.
EVM compatibility is important as it allows developers to easily port their existing Ethereum-based applications to other compatible platforms, enhancing interoperability and scaling. of decentralized applications, Bauer said.
With both zkBNB and opBNB available, Bauer sees BNB Chain directly competing with the Ethereum Layer 2 ecosystem, such as Arbitrum and Optimism. While opBNB is based on mainstream Optimism, Bauer says it offers a higher gas limit or block space of up to 100 million compared to Optimism's 30 million.
A higher gas limit indicates the ability to conduct more computation work within a block, allowing for enhanced scalability and processing of more transactions on the blockchain.

BNB Chain vs Ethereum

The BNB Chain ecosystem is still small compared to the Ethereum ecosystem. The total key value or TVL of Ethereum-based applications is over $44 billion, and the TVL of BNB Chain-based projects is more than $4 billion, according to data from DefiLlama.
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Bauer said BNB Chain is "trying to push the innovation part" to bring more user-friendly applications into the ecosystem and increase its TVL.
The BNB token was recently considered a security by the US Securities and Exchange Commission (SEC) when it sued Binance, Binance.US and their owner Changpeng Zhao on June 5, but according to new information At least they reached an agreement not to freeze assets. Bauer declined to comment on the impact of the lawsuit on the BNB Chain ecosystem, and said the project is focused on continuing to build.

"Trend layer-2" continues in 2023

The trend of building layer-2 on Ethereum is emerging strongly in 2023. Besides zkEVM solutions like Polygon zkEVM, zkSync Era, Linea, Scroll and Taiko, CEX exchanges like Bybit, Coinbase and OKX have announced layer-2 Mantle, Base and OKBChain layout. Even some DeFi projects like Maker and the latest, Frax Finance, have expressed their intention to make their own layer-2.
Optimism rival Arbitrum in March announced Arbitrum Orbit, a solution that allows building layer-2 platforms based on Arbitrum. This is considered Arbitrum's answer to the Optimism OP Stack with Superchain ambitions.
 
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