July 18, 2021
The KGO token is built on the blockchain called Binance Smart Chain (BSC), and thus benefits from its top-of-the-line technology. Here is a basic introduction to what that means, and why that is such a great thing.
An Independent and Extremely Popular Blockchain
The Binance Smart Chain (BSC) is an independent blockchain protocol built by Binance, one of the largest centralized exchanges in crypto. It operates in parallel to its bigger sister: Binance Chain.
Back in April 2019, when Binance launched their first blockchain, Binance Chain, their central concern was to create a high-speed blockchain that could support a large number of transactions. To achieve ultra-fast trading, it had to make certain trade-offs and Binance Chain chose not to support multiple apps.
Around the same time, DeFi (decentralized finance) was flourishing on the Ethereum blockchain and Binance realized they too needed smart contract capacities to keep the momentum up. Adding these capacities directly onto Binance Chain would have been risky as it could have bogged the network down.
So, in September 2020, Binance decided to launch a second blockchain, BSC, with greater flexibility from a programmability standpoint. Since then, the BSC ecosystem has seen an impressive growth in popularity:
Low Fees, High Speed, and Compatibility
Over time, the popularity of Ethereum grew past what its infrastructure could handle, causing congestion, slow transactions, and high fees. It can in fact cost up to $150 to execute a transaction on Ethereum, while it takes minutes or even hours for transactions to confirm.
Ethereum's high fees led to the rise of alternative smart contract platforms like BSC, which provide a viable platform for those that cannot afford the fees. By contrast, fees on BSC range between 1-3 cents per transaction, and the transactions settle in only 5 seconds.
Yet, the ascent of BSC in 2021 is also greatly linked to its compatibility with other coins and tokens. For example, BSC is compatible with Ethereum and supports its ERC-20 token under the name BEP2E token.
Moreover, some tokens launched on the BSC network are pegged to a counterpart native token. The main purpose of these “peggy coins” is to have their value tied to another digital asset, such as Bitcoin or Ethereum, to allow these assets to be traded on BSC, which would not be possible otherwise due to their different blockchains,
Binance Coin (BNB) for Transaction Fees
The BSC network is governed by the Binance coin (BNB), which needs to be used to pay network fees, staking, or running smart contracts on BSC. BNB is the Binance ecosystem’s native utility token, and depending on which Binance blockchain it is used, it takes a different form.
Basically, BNB is the native token of the Binance Chain blockchain, and uses the BEP2 network. On the BSC blockchain, however, BNB exists as Smart Chain BNB to be usable on the BEP-20 network. BNB and Smart Chain BNB are the same, they are equal in value, they just exist on two different blockchains: Binance Chain and BSC.
Partly thanks to Ethereum’s congestion and gas fee issues, BSC has made immense traction in early 2021. To counter BNB’s insane price jump to over $300 in February, the BSC community made the network even more appealing to new users as an alternative to Ethereum by lowering its gas fee from 15 Gwei to 10 Gwei.
(To learn how to swap BNB for Smart Chain BNB on Trust Wallet, see this tutorial)
KiwiGo on BSC: Fast, Cheap, Reliable and Safe
BSC currently offers one of the world’s best blockchain technology. It provides faster and cheaper transactions than most blockchains and allows KGO to be traded almost instantly and with exceptionally low transaction fees.
In addition, there are multiple BSC security companies like Certik and Peckshield that audit and verify different BSC tokens and dApps (decentralized apps). They perform delicate security audits looking for potential vulnerabilities in the code, business model, and check other aspects such as verifying core team members, reviewing their previous experience, or auditing the project’s finance.
KiwiGo is proud to say that the source code of its smart contracts has been audited and deemed true and compliant by the security blockchain auditor Certik in May 2021, thus proving KGO’s commitment to ensuring security and safety for both users and investors.
To learn more about Binance Smart Chain and how to use it, watch Binance’s dedicated video below.