In a blog post published yesterday, the BNB Chain team announced the formal launch of their zkBNB Testnet on September 2, with the intention of providing a more robust and secure blockchain infrastructure for Web3 dApps.
By making the source code publicly available, they hope that more people will be encouraged to experiment with zkBNB and discover its many uses.
The goal of developing zero-knowledge-proof scaling technology was to facilitate scalability, or the efficient, low-cost, and safe processing of a huge volume of transactions.
In reality, zero-knowledge proof (ZKP) is used most often to improve both privacy and network congestion.
They are built on the principle that any unnecessary information in a transaction that will be recorded on the blockchain should be omitted. Since bytes represent the size of the transactions, this reduces their overall volume. As a result, the transaction may be recorded on the blockchain for less money, takes up less room in the blocks, and can be kept hidden more easily.
The BNB Chain team also claims that their zkBNB alternative would strongly influence developers’ ability to create innovative, scalable, and secure BNB Smart Chain-based applications. This is because developers will be able to conduct transactions more quickly, securely, and cheaply.
By pooling up several off-chain payments into a single zkBNB transaction, a single SNARK proof may be generated. By doing so, atomic swaps on BNB Chain may be performed with very little effort. DeFi’s liquidity pools and AMM swaps will enable unauthorized trading of assets.
BNB Chain Zero-Knowledge Technique and Its Benefits
By using zkBNB, BNB Chain is able to process up to 10,000 transactions per second and 100 million addresses.
According to the BNB Chain team, the people who create dApps for NFTs have the most to gain from this development. These programmers will have access to API services and an integrated NFT marketplace that facilitate the rapid development of cryptocurrency and NFT markets with minimal configuration.
It’s worth stressing that fees provide a significant challenge in the NFT sector. This is because many NFTs have little to no value and may be exceedingly cumbersome to transfer between wallets due to excessive fees.
According to the BNB Chain team, this is a particularly widespread problem in blockchain video games and crypto initiatives related to social media.
Moreover, zkBNB enables the use of human-readable names in transactions, such as the storage of sender and recipient addresses.
What It Means for the Future of Binance Currency and Its Pricing
zkBNB’s Mainnet release is scheduled for later this year.
Indeed, this development very certainly contributed to the 5% increase in BNB’s price that occurred today.
It dropped from $324 to $261 in the last 30 days, but today it rose back up to about $280.
As of right now, you can get this at a discount of 14% compared to a month ago, and at a discount of 33% compared to a year ago.
BNB is one of the primary cryptocurrencies that is performing well in the bear market, as its price is down less than 60% from its all-time high in May 2021. For instance, Bitcoin is still down 72%, while Ethereum is down 67%.
BNB is used in the Binance ecosystem, the world’s largest cryptocurrency trading platform.
BNB is the third biggest cryptocurrency in the world by market capitalization, despite being valued just little more than a tenth of what Bitcoin is. This is because stablecoins are not included in this ranking.
The market trajectory of BNB will seem a little different from that of BTC and ETH due to these and other factors. Only these three cryptocurrencies can be said to be developing in their own unique ways.
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