Binance’s BNB Chain Introduces Layer-2 Testnet Powered by Optimism
Binance-founded layer-1 blockchain BNB Chain has introduced a new layer-2 chain that it hopes will solve the “success challenge”.
On June 19, BNB Chain announced opBNB, which started as a testnet. The new layer-2 balance solution is based on the Optimism OP Stack, which adds more security and scalability to the Binance blockchain network.
The system is an Ethereum Virtual Machine (EVM) compatible layer-2 chain, which means it works with Ethereum-based smart contracts, networks and ERC-20 token standards.
Blockchains often suffer from network congestion and high fees during periods of high network demand. BNB Chain currently requires 2,000 transactions per second with a transaction fee of around $0.10.
According to the announcement, opBNB can support more than 4,000 transfer transactions per second at an average cost of less than $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
He also mentions that opBNB allows to adjust data access, cache layer and delivery algorithm. This allows Optimum to increase its gas limit to 100 million per block from the 30 million allowed.
In a statement, Binance called opBNB “the answer to the migration challenge that has limited the mass adoption of blockchain technology.”
Optimistic Rollups uses Optimistic Rollups to balance transactions, assuming that the off-chain transaction data is automatically valid unless proven otherwise.
Additionally, the RPC (Remote Procedure Call) service layer simplifies the integration process by providing a user-friendly interface, he said.
This allows developers to “focus on building applications without worrying about the complexity of layer 2 scaling,” he added.
We're seeing the first wave of growth on opBNB – who's next? https://t.co/NnYmmMTP5Q
— BNB Chain (@BNBCHAIN) June 19, 2023
Adam Kochan of CinemaHine Ventures was among those skeptical of the development, commenting that the BNB chain has a scaling problem because it “centered the Ethereum fork and changed the gas limit to an unreliable level.”
He added that launching an Optimism fork “doesn't make any sense” because there were other options, such as joining Optimism as a “superchain”, or layer-2 directly on Ethereum, or layer-3 on Optimism or Arbitrum.
Related: Optimism Successfully Completes ‘Bedrock' Hard Fork, Reduces Deposit Times, Layer-1 Fees
According to Defillama, BNB Chain is the third largest in DeFi's total value locked behind Ethereum and Tron. It has a TVL of $3.38 billion, a 24-hour volume of $264 million, and nearly one million daily active users.
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