Binance BNB Chain launches Optimism-powered layer-2 testnet
June 20, 2023 9:31 AM
There have been suggestions that alternative methods of network scalability exist, notwithstanding Binance's introduction of a new layer-2 chain called opBNB.
Binance own layer-1 blockchain 'BNB Chain' has launched a new layer-2 chain with the aim of addressing its "scalability challenge."
The opBNB testnet was introduced by BNB Chain on June 19 and is now live. The newly introduced layer-2 scaling solution is built on the Optimism OP Stack, which the company claims would increase the security and scalability of the Binance blockchain network.
The layer-2 chain in this system is compatible with Ethereum-based smart contracts, networks, and the ERC-20 token standard because it is built on top of the Ethereum Virtual Machine (EVM).
When there is a surge in the number of people trying to use a blockchain, the network tends to become congested and the associated costs rise. BNB Chain presently claims 2,000 transactions per second at a cost of roughly $0.10.
As stated in the press release, opBNB is capable of processing over 4,000 transfers per second at a cost of less than $0.005.
Furthermore, according to the company, opBNB allows for the optimization of data accessibility, the caching layer, and changing the submission process algorithm to allow for simultaneous activities. This allows it to increase the gas cap per block to 100 million from the 30 million allowed by Optimism.
Binance described opBNB as its "answer to the scalability challenge that has limited mass adoption of blockchain technology."
Optimism scales transactions by automatically assuming transaction data processed off the root chain is valid unless proven otherwise using Optimistic Rollups.
It also mentioned that the RPC (remote procedure call) service layer streamlines the integration process by providing a user-friendly interface.
This enables developers to "focus on developing applications without stressing over the complicated nature of Layer 2 scaling," according to the company.
Cinneamhain Ventures partner Adam Cochran was among those who questioned the development, claiming→ that BNB Chain has to scale concerns "because they centralized an Ethereum fork and cranked up the gas limit to an unsafe level."
He went on to say that establishing an Optimism fork "made no sense" because there were other choices, such as joining Optimism as a "superchain," becoming a layer-2 directly on Ethereum, or even becoming a layer-3 on Optimism or Arbitrum.
When compared to Ethereum and Tron, BNB Chain has the third-highest total DeFi value locked, per DefiLlama. It has a $3.38 billion TVL, a $264 million 24-hour volume, and over a million active daily customers