opBNB: Binance’s Answer to Scalability Challenge or Unnecessary Complexity?

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Binance-founded layer-1 blockchain BNB Chain recently introduced a new layer-2 chain, opBNB, in hopes of addressing its “scalability challenge.” The layer-2 scaling solution is based on the Optimism OP Stack, which aims to add extra security and scalability to the Binance blockchain network. With compatibility to Ethereum Virtual Machine (EVM), opBNB can support Ethereum-based smart contracts, networks, and ERC-20 token standards.

BNB Chain currently claims to process approximately 2,000 transactions per second, with transaction costs of around $0.10. However, the new opBNB scaling solution is expected to support more than 4,000 transfer transactions per second with an average transaction cost below $0.005. By allowing the optimization of data accessibility, the caching layer, and adjusting the submission process algorithm, opBNB can increase the gas limit to 100 million per block, up from the 30 million that Optimism allows.

According to Binance, opBNB is the company’s “answer to the scalability challenge that has limited the mass adoption of blockchain technology.” Optimism uses optimistic rollups for scaling transactions automatically, assuming that transaction data, processed off the root chain, is valid until proven otherwise.

Despite these advancements, some remain skeptical of the development. Cinneamhain Ventures partner Adam Cochran argued that BNB Chain had scaling issues because it had “centralized an Ethereum fork and turned up the gas limit to an unsafe level.” Cochran suggested that there were other scaling options, such as joining Optimism as a “superchain,” becoming a layer-2 directly on Ethereum, or even a layer-3 on Optimism or Arbitrum.

According to DeFiLlama, BNB Chain is the third-largest behind Ethereum and Tron in terms of DeFi total value locked (TVL). It has a TVL of $3.38 billion, a 24-hour trading volume of $264 million, and around one million active daily users. Nonetheless, the introduction of the new opBNB layer-2 scaling solution signifies that there are still hurdles to overcome for Binance and its BNB Chain as the blockchain industry continues to develop.

Source: Cointelegraph

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