BNB Price Soars As Binance Smart Chain Implements “BEP 336” Upgrade, Inspired By Ethereum’s Dencun
March 13 2024 - 11:00PM
NEWSBTC
Binance Smart Chain (BSC), commonly known as BNB Chain, has
announced the “BEP 336 upgrade”, inspired by Ethereum’s Dencun
upgrade (EIP 4844), which aims to optimize data storage and
processing on the blockchain. The upgrade is expected to
significantly reduce transaction costs, improve network
performance, and drive the price of Binance Coin (BNB) towards its
previous all-time high (ATH) of $686, reached in May 2021. BNB
Smart Chain Cost-Effective Data Solution According to the
protocol’s announcement, BEP 336 introduces an innovative concept
called “Blob-Carrying Transactions” (BlobTx) that will change how
large data blocks are handled. These temporary and
cost-effective memory segments, known as blobs, can capture data
blocks as large as 128 KB. By streamlining the transaction
verification process, the network only needs to verify that the
attached blob contains the correct data rather than verifying each
transaction within a block. Related Reading: Zooming NEAR: Solid
75% Growth Sparks Crypto Frenzy The introduction of blob
transactions within the BSC, which is particularly beneficial for
opBNB – the layer 2 network of the BNB ecosystem – offers several
advantages. Blobs reduce network space consumption, resulting in
lower storage costs and more affordable gas fees for users, similar
to Etherem’s Dencun upgrade. This storage strategy allows for
efficient data handling while managing blockchain bloat, ensuring
data integrity and availability throughout its lifetime on the
chain. BEP 336 also includes two additional components. The Blob
Market establishes a fee market for blobs, ensuring regulated
storage and transmission costs based on network demand. The
Precompile Contract adds a layer of security by verifying that the
data in a blob matches the reference in the blob-bearing
transaction. While BEP 336 draws inspiration from Ethereum’s EIP
4844, it is tailored to meet BSC’s unique requirements. Notably,
BSC’s design mandates that blobs be managed exclusively by the BSC
client, distinguishing it from Ethereum’s approach. Moreover, BSC
implements a dynamic gas pricing mechanism for blobs, ensuring
reasonable transaction costs with minimum and maximum thresholds.
BEP 336 Integration With Phased Roadmap BSC has outlined a phased
roadmap for the integration of BEP 336. Beginning with the Testnet
launch in April, developers can test and interact with the upgrade
in a “controlled environment” to address potential issues.
The subsequent Magnet phase in May will focus on further testing
and optimization to ensure the “robustness” and “scalability” of
BEP 336. Finally, in June, the mainnet hard fork will mark the
official deployment of BEP 336 on the BSC mainnet, ushering in a
new era of efficiency and cost-effectiveness for the network.
Related Reading: Ethereum Is Not Done: Crypto Analyst Sets New
$5,000 Target According to the announcement, the benefits of BEP
336 are expected to impact developers and users within the BSC
ecosystem significantly. Gas fees will be reduced considerably as
certain data types no longer require permanent storage, making
transactions more affordable. The temporary storage mechanism
will keep the blockchain lean and bloat-free, enhancing overall
network performance. With lower costs and improved efficiency, BEP
336 aims to make the BSC ecosystem more accessible to a wider
audience, including developers and newcomers to blockchain
technology. The announcement has boosted Binance Coin’s (BNB) price
by over 8%, resulting in a current trading price of $588, just 15%
below its all-time high of $686. In case of further price
gains, the next resistance walls for the BNB price are placed at
the $600 level and the $608 mark, which could prevent the token
from further price appreciation in its mission to reach its current
ATH. Featured image from Shutterstock, chart from
TradingView.com
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