Binance Launches opBNB: A New Layer-2 Testnet Powered by Optimism

Binance BNB Chain has introduced a new layer-2 testnet, opBNB, aimed at addressing the network’s scalability challenges. Launched on June 19, opBNB leverages the Optimism OP Stack to boost security and scalability, providing a solution for the congestion and high fees often seen during peak network usage.

Introducing opBNB: A New Era for BNB Chain

opBNB is an Ethereum Virtual Machine (EVM) compatible layer-2 chain, designed to integrate seamlessly with Ethereum-based smart contracts, networks, and ERC-20 tokens. The BNB Chain currently handles around 2,000 transactions per second (TPS) at a cost of $0.10 per transaction. However, opBNB promises to double this capacity, supporting over 4,000 TPS at a reduced cost of less than $0.005 per transaction.

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

Enhanced Performance and Data Accessibility

opBNB’s infrastructure includes optimization of data accessibility, a caching layer, and an improved submission process algorithm, allowing for simultaneous operations. This advancement increases the gas limit to 100 million per block from Optimism’s 30 million, significantly boosting transaction efficiency.

Addressing the Scalability Challenge

In its announcement, Binance highlighted that opBNB is its response to the scalability issues that hinder mass blockchain adoption. By utilizing Optimistic Rollups, opBNB scales transactions by processing data off the main chain, assuming validity until proven otherwise. The remote procedure call (RPC) service layer also simplifies integration for developers, enabling them to focus on application development without dealing with layer-2 complexities.

Source: BNB Chain

Industry Reactions and Skepticism

Despite the advancements, some industry experts remain sceptical. Adam Cochran, a partner at Cinneamhain Ventures, questioned the decision to launch an Optimism fork. He suggested alternatives such as joining Optimism as a superchain, becoming a layer-2 directly on Ethereum, or a layer-3 on Optimism or Arbitrum.

BNB Chain’s Position in the DeFi Space

Currently, BNB Chain ranks as the third-largest blockchain in terms of DeFi total value locked (TVL), following Ethereum and Tron. According to DefiLlama, BNB Chain boasts a TVL of $3.38 billion, a 24-hour volume of $264 million, and around a million active daily users.

Also Read: BNB Price Prediction 2023 – 2030: Will BNB reach $2,000?