Binance is one of the world’s leading crypto exchanges – and with their own blockchain, they’re looking to dominate the NFT space too. That blockchain is the BNB Chain.
Formerly known as the Binance Smart Chain, the BNB Chain is a Layer-1 blockchain developed by the Binance cryptocurrency exchange. BNB Chain was designed to dominate the DeFi space – but it has also branched out into NFT collectibles, games, and even blockchain-based art.
BNB Chain was incredibly popular on its debut, but today faces increasing competition from Layer-1 blockchains and Layer-2 networks. What makes the BNB Chain stand out, how did it become so popular, and what could be ahead in its future?
Master the topic, as we explain the past, present and future of BNB Chain.
Key Insights
- An alternative Layer-1 blockchain, rivalling Ethereum and Solana
- Created by the developers behind the Binance cryptocurrency exchange
- Debuted in 2020, replacing the Binance Chain from 2019
- Saw rapid growth in 2021 during the first NFT boom
- Focused on DeFi, but also covers NFTs, games and art
What is BNB Chain?
BNB Chain is a Layer-1 blockchain, developed and released by the Binance crypto exchange in September 2020.
It was designed as an improvement to the original Binance Chain, which was launched in 2019. BNB Chain adds support for smart contracts – allowing the chain to support decentralised applications (dApps), NFTs and more.
BNB has full Ethereum Virtual Machine (EVM) compatibility, making it work effortlessly with a wide range of Ethereum-based dApps, tools and services.
BNB Chain is powered by the $BNB token. This token is used to pay transaction fees, and facilitates governance of the blockchain. $BNB is one of the most popular crypto tokens in the world. As of January 2025, it sits at #6, with a token price around $700 USD and a market cap approaching $100B USD.
BNB Chain is perhaps best-known for being the home of PancakeSwap – a platform that offers both DeFi services and an NFT marketplace for BNB NFTs. Some of the most popular NFT collections on the BNB Chain include Pancake Squad, Pancake Bunnies, and PixelSweeper.
Through Binance’s partnership with football star Cristiano Ronaldo, BNB Chain has also starred multiple series of NFT collectibles featuring the icon. This has helped to boost the prominence of BNB, and introduce the chain to a potential audience of millions around the world.
How does the BNB Chain work?
BNB Chain is built to prioritise speed, efficiency, and affordability.
Here are some of its standout features:
- A unique consensus mechanism. BNB utilises Proof of Staked Authority (PoSA) – a hybrid of Proof of Stake and Proof of Authority. Validators are required to stake $BNB to validate the network, earning $BNB fees as rewards.
- Ethereum compatibility. BNB is EVM-compatible. Developers can deploy Ethereum-based apps on BNB using Solidity-based tools. This has allowed BNB to grow its ecosystem with a huge array of dApps.
- Low transactions fees. With transaction fees as low as a few cents, BNB offers an affordable alternative to Ethereum – where high gas fees have long been a sticking point.
- Wide dApp support. BNB supports many dApps, from decentralized exchanges and lending platforms, to yield farming protocols and NFT marketplaces. Some of the leading dApps include PancakeSwap, Venus, and Autofarm.
BNB Chain also provides robust tools for NFT creators and collectors alike. It supports token standards like BEP-721 and BEP-1155 – equivalent to Ethereum’s ERC-721 and ERC-1155 – ensuring an easy-to-understand system of standards.
By giving developers a scalable and efficient blockchain, BNB provides a great platform for dApps that require a blockchain that can support high volumes of users at a smooth and stable rate. This is vital for the growth of blockchain services – especially as more and more users enter Web3 each day.
The history of BNB Chain
The story of the BNB Chain is closely tied to the history of the Binance crypto exchange itself.
Two years after Binance debuted in 2017, the company launched the original Binance Chain. This blockchain was focused on powering trading speeds on the Binance exchange, and introduced $BNB as the ecosystem token for Binance products.
Despite its positives, Binance Chain crucially did not support smart contracts. To fix this, Binance introduced the Binance Smart Chain in September 2020 – initially running alongside the Binance Chain, with plans to supercede or integrate the original chain down the line.
The Binance Smart Chain had both smart contract support and EVM compatibility, with aims to power not just the growing DeFi market, but the rising NFT industry as well.
As NFTs boomed in 2021, the Binance Smart Chain saw explosive growth – at times surpassing Ethereum. Its low fees and fast transactions attracted developers and users alike, with 2021 being a high-point in the history of the chain.
February 2022 saw Binance combine Binance Chain and Binance Smart Chain into the BNB Chain, emphasising the “build and build” philosophy of the blockchain.
What’s next for BNB Chain?
As other Layer-1 and Layer-2 networks have risen in recent years, BNB has fallen out of popularity. Despite this, as $BNB is still such a prominent cryptocurrency, the BNB Chain is still highly-regarded, and it continues to see ongoing development.
These developments include improvements to decentralisation, scalability and notably interoperability, with sidechains and sharding set to be introduced. These technologies will look to boost transaction speeds and help to accommodate the growing number of applications on the blockchain.
2025 is full of challenges for BNB Chain – but also many opportunities. With both NFTs and crypto continuing to find new audiences, and with the blockchain industry continuing to grow, BNB Chain has plenty of potential – and many opportunities to grasp it.
Riding crypto waves since 2012, bridging digital and physical worlds through prose.