BNB Chain Launches Layer 2 Optimistic Roll-up Called opBNB

Join Our Telegram channel to stay up to date on breaking news coverage

BNB Chain has released the opBNB testnet, an EVM-compatible Layer 2 network based on Optimism’s OP Stack. Developers expect opBNB to help increase transaction speeds and reduce costs. The move came as Binance, the world’s largest cryptocurrency exchange by trading volume, announced its deregistration from the UK citing increasing regulatory constraints.

opBNB to Unleash a “New Era of Scalability” – BNB Chain Developers

BNB chain developers are on a mission to unleash the blockchain’s full potential with the launch of an optimized Layer 2 (L2) scalability solution. The developers announced this in a June 19 blog post saying that the new feature will ensure lower transaction fees and enhance performance, unlocking the full potential of the BNB Chain.

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

Describing opBNB as a high-performance L2 solution within the BNB ecosystem, the announcement said it features a block size of 100 megabytes which keeps gas fees stable and affordable.

According to the developers, the opBNB testnet has the ability to “handle over 4000 transfer transactions each second and keep the average cost of a transaction below $0.005.” Notably, these are similar speeds seen on blockchains such as Arbitrum and double those of BNB Chain at the moment. These speeds are also significantly higher than Ethereum’s 30 transactions per second.

According to the blog, the enhanced speeds arise from:

“… mix of BSC’s strong ability and opBNB’s dedicated new features, which includes making data access easier, improving the cache system, and adjusting the submission process algorithm to allow simultaneous operations….”

The speed provision is a value addition for gaming applications, where high responsiveness is desirable.

In addition, opBNB comes with enhanced security features as it adopts a fraud-proving scheme to ensure the validity of transactions. These make opBNB a great solution for widespread adoption across multiple digital environments.

Network congestion and high fees that spike during periods of high demand are persistent issues that blockchains face, effectively clogging applications and services built on that network.

Scaling such a network using a Layer 2 blockchain, which groups several transactions together and submits them as one to the base layer, helps alleviate network congestion and reduce transaction costs.

opBNB’s EVM-compatible platform enables developers to easily create open ecosystems, facilitating the migration of applications to BSC and expanding their user base.

Currently at Layer 2. How many layers do you need? https://t.co/f4mjWB1Qku

— CZ 🔶 BNB (@cz_binance) June 16, 2023

Enhanced speeds is part of the BNB network’s commitment to delivering easy and efficient experiences for users, developers, and projects in the BSC ecosystem. It also bolsters the network’s ongoing mission to bring the power of blockchain to the industry while embracing and steering innovation.

Will opBNB Bring BNB Chain to Ethereum’s Level?

The BNB Chain ecosystem is still tiny compared to the Ethereum ecosystem. At the time of writing, the total value locked (TVL) on Ethereum is $24.69 billion, according to data from DeFiLlama. This is more than eight times BNB Chain’s TVL which stands at $3.36 billion.

Arnaud Bauer, senior solution architect at BNB Chain said the network is “trying to push heavily on the innovation part” to bring more user-friendly applications into the ecosystem and grow its TVL.

BNB, the token that powers the Binance Smart Chain (BSC), was recently defined as a security by the United States Securities and Exchange Commission (SEC) when it sued Binance, Binance.US, and the billionaire CEO Changpeng Zhao on June 5.

It remains to be seen what the implications of the lawsuit will be on the BNB Chain ecosystem, even as the developers are focused on continuing building.