How It Works
BNB Chain uses Proof of Staked Authority (PoSA), a hybrid consensus where 21 elected validators are selected based on BNB stake to produce blocks. The limited validator set enables high throughput (~300 TPS) and low fees at the cost of significant centralization compared to Ethereum or Solana. BNB is burned quarterly through Binance's Auto-Burn mechanism, which adjusts burns based on BNB price and block count to create deflationary pressure. The opBNB Layer 2 (based on Optimism's OP Stack) extends scalability for gaming and social applications, while BNB Greenfield provides decentralized data storage.
Consensus Mechanism: Proof of Staked Authority
Proof of Stake consensus selects block proposers based on the amount of cryptocurrency staked as collateral. Validators risk losing their stake (slashing) if they act dishonestly, creating economic security without energy expenditure. Stake-weighted selection means larger stakers have proportionally greater influence on block production.
Key Architecture Facts
| Category | Layer 1 |
| Consensus | Proof of Staked Authority |
| Launched | 2017 |
| Founder | Changpeng Zhao |