Binance, the world’s largest crypto exchange by volume, is innovating for its altcoin project BNB and its network. According to its latest statement, it wants to speed up transaction times and reduce fees for BNB Blockchain2i. It is becoming one of the biggest players not adopting a technology known as zero-knowledge rollups.
Binance will innovate the network of altcoin project BNB
According to Wednesday’s announcement, the upgrade planned for next year will allow BNB to process between 5,000 and 10,000 passes per second. This vastly surpasses the current capabilities of Blockchain, the largest smart contract chain in terms of user base and transaction volume, and even outpaces the better-known Ethereum.
What Binance has effectively announced is a separate Blockchain where transactions are offloaded and processed faster and cheaper, and results are forwarded to BNB. This is a complex technology. Until recently, it was thought that it would take years to put it on the market. The fact that Binance is putting its significant weight behind a ZK rollup suggests that sooner or later there may be more progress in the field. Binance’s decision follows ZK rollups gaining traction in the Ethereum ecosystem.
What will the upgrade entail?
Binance solutions architect Arnaud Bauer talked about the upgrade. He said it will provide more security for decentralized application (dapp) transactions. He said it will increase interoperability across chains, thereby enabling dapps to expand their user base. Rollups aggregate transactions that can be anything from NFT trades to token trades. They are processed on a layer 2 or companion Blockchain network. They then send a summary of the results back to the layer 1 Blockchain, in this case BNB.
There are other types of collections as well. But developers tend to prefer ZK collections. Because they use fancy cryptography to guarantee that the data they give back to their layer 1 blockchain is not altered. Computing in layer 2 rollup networks tends to be faster and cheaper than layer 1 chains. This makes rollups a huge boon for user adoption.
Latest situation in BNB price
Meanwhile, BNB ranks fifth with a market cap of $45.4 billion. The cryptocurrency is changing hands at $278.63, up 5.5 percent in the last 24 hours. It hasn’t changed much in the last seven days. The cryptocurrency comes right after Bitcoin, Ethereum, Tether and USD Coin by market cap.
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