Binance Launches Optimism-Powered Layer-2 Network

BNB Chain, the Layer 1 blockchain founded by Binance, has unveiled a new Layer 2 chain aimed at addressing its “scalability challenge.”

On June 19, BNB Chain announced opBNB, which launched as a testnet. This new Layer 2 scaling solution is based on the Optimism OP Stack and aims to enhance the security and scalability of Binance’s blockchain network.

This system is an Ethereum Virtual Machine (EVM) compatible Layer 2 chain, meaning it works with Ethereum-based smart contracts, networks, and ERC-20 token standards.

Blockchain networks often face congestion and high fees during peak demand periods. BNB Chain currently processes around 2,000 transactions per second with transaction costs of approximately $0.10. According to the announcement, opBNB can support over 4,000 transfers per second with an average transaction cost of less than $0.005.

As blockchain technology continues to evolve, scalability remains a critical challenge.

But fear not! Enter opBNB, a game-changing Layer 2 scaling solution designed to overcome the limitations of Layer 1 (L1) networks.

Let’s discuss opBNB below 🧵https://t.co/irYn1OPtfQ

— BNB Chain (@BNBCHAIN) June 19, 2023

Additionally, opBNB enhances data accessibility, introduces a caching layer, and adjusts the transaction submission algorithm to enable concurrent operations. This improvement allows for a gas limit increase to 100 million per block, up from the 30 million allowed by Optimism, the company noted.

In a statement, Binance described opBNB as “the answer to the scalability challenge that has hindered the widespread adoption of blockchain technology.”

Optimism utilizes Optimistic Rollups to scale transactions by assuming off-chain transaction data is valid unless proven otherwise.

Additionally, the RPC (remote procedure call) service layer simplifies the integration process by providing a user-friendly interface, the report noted.

The company added that this allows developers to “focus on building applications without worrying about the complexities of Layer 2 scaling.”

We’re already seeing the first wave of development on opBNB – who’s next? 🤔 https://t.co/NnYmmMTP5Q

— BNB Chain (@BNBCHAIN) June 19, 2023

However, Adam Cochran, a partner at Cinneamhain Ventures, expressed skepticism about this development. He remarked that BNB Chain faces scalability issues “because they focused on a fork of Ethereum and increased the gas limit to unsafe levels.”

He further commented that launching an Optimism fork “makes no sense” given other options available, such as joining Optimism as a “superchain,” becoming a direct Layer 2 on Ethereum, or even a Layer 3 on Optimism or Arbitrum.

According to DefiLlama, BNB Chain is the third-largest blockchain after Ethereum and Tron in terms of total DeFi value locked. It has a TVL of $3.38 billion, a 24-hour transaction volume of $264 million, and around one million daily active users.