Interpreting the scaling solution opBNB, how can Layer2 improve the competitiveness of the BNB Chain?

Original Title: "In-depth analysis of opBNB, what potential will Layer2 bring to BNB Chain?"

Original Source: PANews

On the evening of June 19th, BNB Smart Chain (BSC) announced the launch of a new scaling solution - opBNB, and launched the testnet of opBNB. In 2020, when the Ethereum network was congested, the launch of BSC provided users and developers with a fast, secure, and low-cost decentralized application environment.

However, with the surge in trading volume such as GameFi, BSC also faces network congestion and high gas fees at times. The existing design and architecture are no longer able to meet the scalability requirements. In this situation, opBNB has emerged to provide new possibilities for solving BSC's scalability issues.

opBNB Implementation Principle

opBNB is a layer-two scaling solution built on top of BSC, which is also compatible with EVM. It is implemented based on the Bedrock version of OP Stack. Bedrock is the first official version of OP Stack, which includes a set of free and open-source modular components. This allows the settlement layer to be replaced by chains such as BSC, resulting in opBNB.

Similar to how Bedrock works, opBNB processes transactions off-chain and then publishes transaction data on-chain, thereby achieving on-chain data compression and improving scalability. Specifically, users interact with the opBNB network through applications or directly through contracts; Sequencers aggregate transactions, calculate state transitions, and submit them to the rollup contract on BSC; Provers generate cryptographic proofs to prove the validity of these state transitions; Verifiers check the proofs to verify the correctness of the opBNB state.

Unlike Base, the Layer 2 solution of Optimism and Coinbase, opBNB is built on BSC instead of Ethereum. BSC's performance is superior to Ethereum, so opBNB's performance is not only better than BSC, but also better than other scaling solutions such as Optimism.

According to the official description, the block time of opBNB is 1 second, and the gas fee for transfers is as low as $0.005. The transaction processing speed (TPS) exceeds 4000 per second, and its performance has surpassed existing scaling solutions.

Key Features After Capacity Expansion and Upgrade

Compared with the scaling solutions on BSC and Ethereum, opBNB will have some key features that greatly reduce user costs, retain the security of BSC, and become one of the best smart contract platforms in terms of performance and scalability.

opBNB remains compatible with EVM, which allows dApps and smart contracts on other EVM-compatible chains such as Ethereum, BSC, and Polygon to seamlessly migrate to opBNB without any code changes. This not only reduces the development costs for developers but also greatly improves the portability of applications.

opBNB inherits the security of BSC. It ensures the security of state transitions and transactions through sorters, provers, and validators, and rollup is protected by the settlement chain, which is BSC.

BSC is one of the safest public chains, and its high TVL is also a reflection of users' trust in the security of public chains. opBNB will be able to inherit the security of BSC.

Compared to the original OP Stack, opBNB is more flexible and can add some custom features. Although opBNB is based on OP Stack, it does not mean that it is the same as other solutions that also use OP Stack. OP Stack provides a modular and replaceable design, so opBNB can implement more flexible updates based on its own needs and the BSC ecosystem, such as changing opBNB's key parameters, adding interaction with the blockchain, and changing the data availability layer.

opBNB is built on BSC, which also leads to lower transaction costs. The three main costs of blockchain transaction processing include execution costs, storage costs, and data availability costs. Rollups can move some of the costs from layer one to layer two, thereby reducing overall costs. However, the cost of publishing data to layer one's calldata is still much higher than the computation and storage costs of layer two. On the one hand, the layer one mainnet corresponding to opBNB is BSC, which is cheaper than Ethereum corresponding to Optimism, etc. On the other hand, opBNB can also use BNB Greenfield as the storage layer to further reduce costs. Therefore, the transfer cost of opBNB can be as low as $0.005.

opBNB is also one of the best smart contract platforms in terms of performance and scalability. In blockchain systems, Gas is used to measure the computational resources required to execute transactions. For blockchain, the Gas limit for each block is fixed, which means that the total amount of transactions and computations that can be processed in each block is limited. opBNB adopts a shorter block time (1 second) and a higher block Gas limit (100 million Gas) than other solutions, enabling a capacity of 100 million Gas per second and a TPS exceeding 4000.

opBNB showcases new possibilities

Based on the strong products and community within the BNB ecosystem, combined with the low cost and high scalability of opBNB, it may present new possibilities in the competition between Layer 1 and Layer 2.

1. User base of Binance

Binance is the largest cryptocurrency exchange with the most users and holds a large amount of user funds. Binance users have a demand for accessing decentralized products, applications, and tools. Under regulatory pressure, Binance also has a need to build decentralized products. Binance's large user base is expected to provide a rich foundation for the development of opBNB, attracting more developers and users to use opBNB, and projects in the opBNB ecosystem may also receive more support from Binance.

2. The Ecological Foundation of BSC

Since its launch, BSC has developed a complete decentralized ecosystem. BSC's TVL has consistently ranked in the top three among all Layer 1 and Layer 2 solutions. As of June 21st, there are approximately 1.3 million active addresses and 3.8 million daily transactions. Because opBNB is also compatible with EVM, applications, funds, and users on EVM-compatible chains such as BSC can easily migrate to opBNB, making it much easier than educating users from wallet registration on a new public chain.

According to Messari's Q1 summary report this year, BSC's TVL (including borrowing in lending protocols, but not the amount of liquidity pledged in staking protocols) on March 31 was $5.7 billion, ranking second among all public chains, with a QoQ growth of 10.2% compared to the previous quarter.

3. Application of BNB Greenfield in opBNB

The Layer 2 solution needs to ensure that transaction data can be accessed and verified by anyone, which is an important component of transaction costs. opBNB separates the data availability (DA) layer from the execution layer to solve the data access problem and allows for various DA options. In the future, opBNB may use the storage infrastructure BNB Greenfield in the BNB ecosystem as the DA layer, which can increase the usage scenarios of BNB, promote the development of the BNB ecosystem, and further reduce costs.

4. Convenient Cross-Chain Channels

Arbitrum and Optimism, as Layer 2 solutions, can also provide a low-cost interaction environment. However, except for stablecoins and a few native tokens supported by exchanges, the deposit and redemption of other assets still need to be processed through the Ethereum mainnet, which inevitably incurs high gas fees. In this regard, opBNB in the BNB ecosystem has unique advantages. In a centralized environment, Binance is highly likely to support the withdrawal of major stablecoins from exchanges to opBNB. In a decentralized environment, the gas fees for deposit and redemption through opBNB's official cross-chain bridge are relatively cheap, and BSC is also one of the main cross-chain hubs, with most cross-chain bridges supporting BSC and potentially opBNB in the future.

5、Support new application scenarios to meet the large-scale application needs of Web3

Compared to existing scaling solutions, opBNB significantly increases the ability to process transactions quickly, efficiently, and at a low cost, meeting the demands of Web3 large-scale applications in gaming, social networking, metaverse, high-frequency trading, and other scenarios. For example, the blockchain game Crypto Blades, which once had a daily active user count of over 300,000 and nearly 8 million daily transactions, would cause congestion on BSC but can run smoothly on opBNB.

Summary

The combination of BSC and OP Stack gives opBNB strong competitiveness in terms of cost, performance, scalability, and more. Its implementation principles and modular design also provide ample room for future upgrades, such as the addition of BNB greenfield usage.

Binance and BSC's existing users and potential support for opBNB are also beneficial for the cold start of opBNB. The low-cost and high-performance opBNB may meet the large-scale Web3 application needs in scenarios such as gaming and metaverse in the future.

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