Horizon Protocol is a Decentralized Finance (DeFi) protocol that facilitates the trade of synthetic assets (zAssets) representing the real economy, A DeFi trading platform such as Horizon Protocol is also a dream come true for traders.
Horizon Protocol is a fork from the existing Ethereum based synthetic assets trading platform, Synthetix. However, as Horizon Protocol is based on the Binance Smart Chain (BSC) with cross-chain functionalities, it overcomes the current scalability and congestion problems currently seen on the Ethereum blockchain. This means faster transaction speeds, far lower costs, and access to the native Binance ecosystem.
Binance Smart Chain (BSC)
BSC came to solve the issues of the Binance blockchain. The consensus algorithm of BSC is Proof of Stake Authority (PoSA). BNB is the token of the Binance Ecosystem. In PoSA, 21 validators stake BNB to secure the BSC network.
BEP-20 token is native to BSC. It has the same format as Ethereum’s ERC20 token standard. The key features of BSC are compatibility with Ethereum blockchain, high-speed transactions, and lower transaction fees. Currently, around 60 DeFi related DApps are running on BSC.
Advantages that BSC offers to the Horizon Protocol
Access to the Binance chain
The development of the Binance chain aimed to facilitate decentralized trading at ultra-high speed. Binance DEX is the largest user-friendly trading decentralized app (DApp) interfacing on the Binance chain. BSC runs simultaneously with the Binance chain.
The vision for BSC was to solve scalability, flexibility, and programming issues in the Binance chain. Additionally, BSC is compatible with the Ethereum Virtual Machine (EVM). Therefore, dApps running on the Ethereum blockchain can easily be configured with BSC.
Horizon Protocol provides a trading platform for zAssets, representative of real-world financial assets. Horizon Protocol has opted to select BSC as its home chain utilizing blockchain bridges to incorporate cross-chain functionality with other blockchains.
Cheap transaction fee on BSC
The Binance Smart Chain or BSC vision has been to allow dApps to transact at a low fee. The fee of using BSC is 100 times cheaper than most other blockchains. In comparison, the gas fee of the Ethereum blockchain is relatively high. Since Horizon Protocol has BSC as its origin chain, it can offer its users an affordable derivatives trading experience.
Dual Chain architecture of BSC
Users may effortlessly move assets from one blockchain to another using dual-chain architecture. As a result, Binance Chain allows for fast trade while BSC allows for the creation of powerful decentralized apps. It implies that a critical feature of BSC is interoperability.
Horizon Protocol works on the premise of interoperability with other blockchains using blockchain bridges while selecting BSC as its main operative base due to the overwhelming advantages it provides.
High transaction speed, low transaction fee, cross-chain interoperability, and accessibility to the Binance chain make BSC a favored blockchain for Horizon Protocol.