Binance Smart Chain (BSC) runs in parallel to the Binance Chain (BC). Unlike BC, BSC has smart contract functionality and is Ethereum Virtual Machine (EVM) compatible. BSC’s dual-chain architecture allows its users to build Decentralized Apps (DApps) and digital assets on one blockchain and exchange it on another using the blockchain’s high-speed trading. Its transaction time is roughly 3 seconds.
Although BSC and BC are very similar in design and run side-by-side, Binance Smart Chain is an independent blockchain, which means that it could continue to function, even if Binance Chain went offline.
BSC is the result of a hard-fork of the Go Ethereum (Geth) protocol. It uses a Proof of Staked Authority (PoSA) mechanism, where 21 validators produce blocks and are rewarded in Binance’s token, BNB. The validators are voted in and out based on the network’s staking governance system.