BNB Chain begins phasing out the Beacon Chain – Why?

Blockchain

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Users of the chain would need to move to a new single-chain structure.

While core development stalled, active users and TVL increased.

Decentralized smart contracts network BNB Chain, has disclosed its plans to wind down the Beacon Chain and introduce the BEP333.

In a blog post released on the 8th of January, the  BEP333, also known as the BNB Chain Fusion, would strengthen security and increase the efficiency of assets used on the chain.

For context, the BNB Beacon Chain is a part of the ecosystem responsible for staking and governance. The goal of the BEP333 is to smoothly aid the transition of the BNB Beacon Chain from a dual-chain structure into a single-chain structure. As a result, BNB Chain outlined some guidelines for traders how actively use the chain. According to its statement, holders of Bitcoin [BTC] and BNB do not have to worry about moving their assets.

However, it was not the same for other cryptocurrency holders. Before the final decommissioning, BNB Chain noted, “Users holding assets that currently lack cross-chain transfer capabilities are advised to promptly reach out to the respective token owner or issuer”

Following the disclosure, AMBCrypto assessed what was happening on the chain. Using Token Terminal’s data, we observed that the revenue has increased by 6.4% in the last 24 hours.

This increase implied that activity on the network increased within the said period.

Another metric we also looked at was the number of core developers. At press time, the number of core developers had reduced to 51.

The decrease is core developers inferred that the chain was not shipping out new features. Meanwhile, the chain also mentioned some things about crypto holders who might fail to transfer assets before the transition.

According to the statement, users late to the party can use the BEP299 Token Migration. The BEP299 Token Migration presents a secure and trustless solution for users to recover their assets on the BSC once the Beacon Chain stops running. It mentioned that:

“For users who didn’t transfer assets to the BSC network after the Beacon Chain sunset, BNB Chain offers a backup post-Beacon Chain Fusion.”

In another development, BNB shared some of its  Q4 achievements with AMBCrypto.  According to the report, the chain alongside the opBNB set new records in both Daily Active Users (DAU) and Total Value Locked (TVL).

opBNB is an optimistic rollup on the BNB Chain that enables higher transaction speed and lower fees for users.

Regarding DAUs, the metric increased but 22%  and nearly hit 1.2 million. Around the same period, opBNB’s daily DAU tripled, reaching almost 260,000 users in December.

As a result, opBNB, and Solana [SOL] emerged as the three fastest-growing chains in Q4.

This increase signaled a strong trend in user adoption, which also shifted to its Total Value Locked (TVL). At press time, we confirmed that opBNB’s TVL had increased to 19.44 million, data from DeFiLlama showed.

The jump represented a 19x increase from October 2023, when it first hit $1 million.

An in-depth look at the TVL showed that KiloEx’s growth from $3 million to nearly $10 million, and Thena and APX collectively contributed to the growth of opBNB’s TVL.

Source : AMBCrypto by Victor Olanrewaju / Jan 10, 2024

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