Cryptocurrency

Top 5 Binance Blockchain Tokens and Applications

Snapshot:

  • Top 5 Binance Smart Chain Tokens 
  • Top 3 Binance Smart Chain Applications
  • Summing it up!

Binance Smart Chain or BSC is an alternative to Ethereum and other leading DeFi platforms. BSC gained popularity after Ethereum failed to prove viable to those who couldn’t afford the fees. Binance, a leading cryptocurrency trading exchange, announced BSC in September 2020.

Binance Smart Chain (BSC) is a hard fork of the Go Ethereum (Geth) protocol, and as such, shares many similarities with the Ethereum blockchain. However, BSC developers have made significant changes in some key areas. The largest change in BSC’s consensus mechanism is that it allows for cheaper and faster transactions.

Wondering which one is better BSC or ETH? Check out a detailed analysis of Binance Smart Chain Vs Ethereum. 

Top Binance Smart Chain Tokens

Token  Market Cap Volume 
Binance Coin(BNB) $80,916,805,289 $1,345,122,330
Cardano  $71,583,039,113 $2,584,427,840
Tether $69,692,785,509 $70,584,915,178
Polkadot  $43,228,644,979 $1,229,756,526

Binance Coin 

Binance Coin (BNB) is the cryptocurrency that was introduced by Binance exchange to trade. This cryptocurrency initially ran on the blockchain technology of Ethereum with ERRC 20 standard. It is the native token of Binance since its inception. 

The maximum limit of Binance coin is 200 million BNB tokens. Binance coin was created as a utility token for the discounted trading fees on the exchange. There are numerous applications to this token apart from payments for transaction fees such as entertainment, travel bookings, online services, and other financial services. 

The market capitalization of the Binance coin (BNB) is more than $46 billion. 

The current price of BNB is $339.12 attaining its all-time high value on 21st April at $686. It is the third-largest cryptocurrency in the world today. The reason behind the spike in the value of BNB is due to the Binance smart chain (BSC). It is a parallel chain for DeFi services as well as decentralized apps (Dapps). The high ethereum transaction fees have led to the increase in usage of BSC. This has become another reason for the increase in trading activity around the Binance coin. 

The demand for Binance coins is increasing due to the high usage of the exchange. Experts believe that BNB has huge potential to soar. The potential of DeFi to replace traditional trading shall also benefit the coin and thus the investors. According to experts, all these factors make binance a great investment opportunity. 

Cardano

Cardano is a decentralized proof-of-stake (PoS) blockchain that was designed to become a better alternative for proof-of-work (PoW) networks. The interoperability, sustainability, and scalability of the PoW networks are limited due to the energy usage, growing costs, and slow transactions. 

Cardano was developed by the co-founder of Ethereum blockchain, Charles Hoskinson, who realized the challenges faced by ethereum. This search led to the launch of the platform in 2015 and the native token ADA in 2017. 

Cardan offers numerous use-cases of Ethereum blockchain and its smart contracts. The design of Cardano was such that it was energy efficient and supported fast transactions at nominal transaction fees since its inception. Investors who are interested in hard money are also inclined towards Cardano. The strict supply cap of the coin is 45 billion when compared to Ethereum that does not have any fixed limit on the supply cap. 

It has been quite successful in the past years and currently holds the fifth position in the world with respect to its market capitalization. The project has drawn a lot of attention in 2021 when the environmental impact of crypto was brought to discussion. Experts believe that Cardano has the potential to soar in the months and years to come. 

Tether

Trying to avoid the volatile market? It’s time that you buy tether if you want time to transfer and trade value denominated in fiat without having to bear the everchanging conversions. USDT is a crypto asset that reflects the value of the USD. You can buy USDT for $1. Tether stands at position 3 in terms of market capitalization. It is one of the most stable coins. 

It is capable of offering the stability of fiat currencies along with the efficiency of cryptocurrency. USDT serves as a powerful tool since it can be redeemed for a US dollar. It acts as a great tool to avoid extreme volatility in the cryptocurrency market. 

For an instance, if you move the value to USDT you reduce the risk of exposure to sudden price drops in your cryptocurrencies by a great amount. If you buy tether you also remove the transaction fees and the delays associated with traditional assets. The stability of Tether and its efficiency as a cryptocurrency is indeed a great combination for investments. 

Also, read about the top 5 Ethereum Tokens and applications. 

Polkadot 

Polkadot is an open-source multichain protocol that helps in the transfer of all types of assets and data via cross-chain transfer. Thus, enabling a variety of blockchains to be interoperable with each other. 

This feature of interoperability establishes a completely private and decentralized web that is completely controlled by the users. This also simplifies the creation of institutions, services as well as new applications. 

The Polkadot blockchain technology is capable of connecting different permissionless networks, private chains, future technologies, and oracles that let these independent blockchains share information and transactions in a trustless manner via the Polkadot relay chain. 

The native token of this protocol is DOT that has the following major functions:

Creation of parachains via bonding 
Providing network operations and governance. 

There are four major components of Polkadot

  • Relay Chain– It acts as the heart of Polkadot helping in the creation of consensus, shared security, and interoperability across the network of different chains. 
  • Parachain– Independent chains that can create their own tokens and are optimized for a particular use case. 
  • Bridges– Help in the connection of parachains and parathreads for them to communicate with external blockchains. 
  • Parathread– Similar functioning as parachains but have flexible connectivity. It is based on the pay-as-you-go model. 

Polkadot being a sharded multichain network can process transactions across various chains parallelly (Parachains). This further helps to improve the scalability of the parallel chains. 

The custom blockchains can be easily developed with the help of a substrate framework and therefore, can be connected with the network in just a few minutes. This makes the network highly adaptive as well as flexible making them share information and functions across different participants. Polkadot requires no fork for an upgrade, new features can be automatically upgraded without the requirement of any forking. 

The governance system of the Polkadot network is highly sophisticated which secures it. The blockchain governance on Polkadot can be customized by the communities on the basis of their conditions and requirements. 

Top 3 Binance Smart Chain Applications 

BSCex
BakerySwap
Pancakeswap

These are the top 3 Binance smart chain projects that have created quite a stir in the blockchain Industry. These BSC projects have emerged as an alternative to the Ethereum projects due to the several advantages they have to provide. Here is a detailed overview of the Top 5  Binance Smart Chain projects

You can also explore the Top 5 Ethereum Projects to understand whether to choose Ethereum over Binance Smart Chain or vice versa. 

Summing It Up! 

Binance Smart Chain has made immense traction in early 2021 so far partly thanks to Ethereum’s congestion and gas fee issues, which has caused developers and staking investors to look for other options.

The Binance Smart Chain is a speedy and low-cost DApp platform for crypto users to enjoy. It’s no surprise that the number of daily unique active wallets has surged to 50,000 as of Feb. 9, 2021, and that its total transaction volume had reached $15 billion in January 2021. 

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