Binance Chain, the first blockchain from Binance, is optimized for fast decentralized trading but lacks smart contracts and strong programmability.
That's why Binance Smart Chain (BSC) was created. It runs parallel to the original Binance Chain, has smart contract functionality, and is compatible with the Ethereum Virtual Machine (EVM).
BSC is an independent blockchain and is not a layer two or off-chain scalability solution.
Binance Smart Chain has a block time of around 3 seconds. The native token of both blockchains is BNB.
Validators stake BNB and can receive transaction fees. Unlike Bitcoin, there is no block reward by way of newly minted BNB. This is because BNB is not inflationary. Instead, the supply of BNB decreases over time, because the Binance team regularly "burns"
coins.
Interestingly, BEP-2 and BEP-8 tokens from Binance Chain can be swapped for BEP-20 tokens on BSC. This can be easily done using the Binance Chain Wallet.
Consensus mechanism: Proof of Staked Authority