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The Tier 1 blockchain BNB Chain founded by Binance has unveiled a new Tier 2 chain that hopes to solve its “scalability issue.”
On June 19, BNB Chain introduced opBNB, which launched as a testnet on June 19. The new Tier 2 scaling solution is based on OP’s Optimism stack, which he says will add additional security and scalability to the Binance blockchain network.
The system is a layer 2 chain compatible with the Ethereum Virtual Machine (EVM), which means that it works with smart contracts, networks, and Ethereum-based ERC-20 token standards.
Blockchains often suffer from network congestion and high fees during times of increased network demand. BNB Chain currently requires around 2,000 transactions per second with transaction costs around $0.10.
According to the announcement, opBNB can support over 4,000 transfer transactions per second and the average transaction value is below $0.005.
As blockchain technology continues to evolve, scalability remains a critical challenge.
But fear not! Enter opBNB, a game-changing Layer 2 scaling solution designed to overcome the limitations of Layer 1 (L1) networks.
Let’s discuss opBNB below https://t.co/irYn1OPtfQ
— BNB Chain (@BNBCHAIN) June 19, 2023
In addition, opBNB also allows you to optimize data availability, cache level, and adjust the sending process algorithm to ensure concurrent operations. This allows the gas limit to be increased to 100 million per block from the 30 million allowed by Optimism.
In a statement, Binance called opBNB “the answer to the scalability problem that limits the mainstream adoption of blockchain technology.”
Optimism uses optimistic rollups to scale transactions by automatically assuming that transaction data that is processed outside the root chain is valid until proven otherwise.
In addition, the RPC (remote procedure call) service layer simplifies the integration process by offering a user-friendly interface.
This allows developers to “focus on building applications without worrying about the complexities of Layer 2 scaling,” he added.
We’re already seeing the first wave of development on opBNB – who’s next? https://t.co/NnYmmMTP5Q
— BNB Chain (@BNBCHAIN) June 19, 2023
Cinneamhain Ventures partner Adam Cochran was among those skeptical of the development, noting that BNB Chain had scaling issues “because they centralized the Ethereum fork and raised the gas limit to unsafe levels.”
He added that launching an Optimism fork “doesn’t make sense” as there were other options such as joining Optimism as a “superchain”, or moving to Layer-2 directly on Ethereum, or even Layer-3 on Optimism or Arbitrum.
Related: Optimism successfully completes ‘Bedrock’ hard fork, reducing deposit time and Tier 1 fees
According to DeFiLlama, BNB Chain is the third largest behind Ethereum and Tron in terms of total DeFi value locked. It has a TVL of $3.38 billion, a 24-hour volume of $264 million, and about a million daily active users.