The Binance-founded blockchain, BNB Chain, has launched a new layer-2 chain called opBNB. This layer-2 scaling solution is powered by the Optimism OP Stack and aims to address the scalability challenges affecting the blockchain. With opBNB, BNB Chain will be able to enhance security and scalability within its network.

opBNB, an Ethereum Virtual Machine (EVM) compatible layer-2 chain, will work seamlessly with Ethereum-based smart contracts, networks, and ERC-20 token standards. Its introduction will help alleviate scalability issues that lead to network congestion and high fees during times of increased demand.

The BNB Chain currently processes around 2,000 transactions per second, with an average transaction cost of $0.10. However, opBNB is expected to support over 4,000 transactions per second, with an average transaction cost below $0.005. Moreover, by optimizing data accessibility, adjusting the submission process algorithm, and improving the caching layer, the opBNB chain will increase the gas limit to 100 million per block.

Binance sees opBNB as the solution to the scalability challenge that has hindered the mass adoption of blockchain technology. By leveraging Optimistic Rollups, opBNB is able to scale transactions and assume transaction data off the root chain is valid until proven otherwise.

BNB Chain is currently the third largest blockchain in terms of DeFi total value locked, behind Ethereum and Tron, with a TVL of $3.38 billion and approximately one million active daily users.

FAQs

What is opBNB?

opBNB is a layer-2 chain introduced by BNB Chain, the blockchain founded by Binance. It is designed to address scalability challenges and improve security and scalability within the network.

How does opBNB solve scalability issues?

opBNB leverages Optimistic Rollups to scale transactions. It assumes transaction data off the root chain is valid until proven otherwise, allowing for faster and more efficient processing of transactions.

What is the impact of opBNB on transaction speed and cost?

opBNB is expected to support over 4,000 transactions per second, with an average transaction cost below $0.005. This represents a significant improvement compared to the current transaction speed and cost on the BNB Chain network.

What is the current position of BNB Chain in the DeFi space?

BNB Chain is currently the third largest blockchain in terms of DeFi total value locked, with a TVL of $3.38 billion. It has approximately one million active daily users.

Source: CoinJournal