BNB chain has recently introduced an Optimism powered testnet to address the scalability challenges it faces. The upgrade, dubbed, opBNB, was introduced on June 19 and is bound to add increased levels of security and scalability to the chain. The system can be classified as an EVM compatible Layer-2 chain. This suggests that the upgrade would work with Ethereum based smart contracts and networks, as well as ERC-20 tokens.
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
It is a fact that blockchain networks tend to suffer as a result of network congestion during peak demand. The chain currently claims approximately 2,000 transactions per minute against a gas fee of $0.10. As per the official announcement, opBNB would be able to support more than 4,000 transactions per minute. At the same time, the gas fee is comparatively lower at almost $0.005.
OpBNB would also allow seamless optimization of data accessibility, and the caching layer, as well as adjust the submission process algorithm layer to allow simultaneous operations. The platform stated,
“By harnessing the power of Optimistic Rollups, opBNB moves computation and state storage off-chain, alleviating congestion and driving down transaction costs. Transactions are executed outside of the chain but their data is posted to the Mainnet as calldata. This revolutionary approach enables a high throughput environment with lower gas fees.”
Optimism resorts to the use of Optimistic Rollups to scale transactions by automatically assuming that the transaction data is valid. The remote procedure call service layer also simplifies the integration process by offering an increasingly user-friendly interface. Therefore, developers have the ease and freedom of developing applications without worrying about the complexities of layer 2 scaling.
BNB is unable to recover
Despite the interesting update, the Binance Smart Chain cryptocurrency, BNB, has failed to break the ranges at which it has traded over the past week, between $230 and $250. In fact, BNB is currently trading at a price 1.06% lower than 24 hours ago, at $239.35.
Most altcoins are also trading in the red today. With Cardano (ADA) -2.10%, Ripple (XRP) -2.85 and Ethereum (ETH) -0.03%.
OpBNB by BNB Chain is Criticized
Despite being developed and introduced to address the ongoing scalability issues on the chain, opBNB almost immediately became a target of criticism from analysts in the crypto industry. People believe that BNB faced scalability issues because the chain centralized an Ethereum fork and also pushed up the gas level to an increasingly unsafe level.
People argue that the launch of an Optimism fork does not exactly make any sense as a number of alternative options are available. These included either joining Optimism as a superchain or becoming a layer 2 directly on the Ethereum network. These options also included becoming a layer 3 on either Arbitrum or Optimism.
BNB chain is currently the third largest blockchain, falling shortly behind Ethereum and Tron. It has a TVL of approximately $3.38 billion and approximately one million daily active users.