As of 07:00 Coordinated Universal Time (UTC), BNB Chain is back in business after being forced to put the clamps on Thursday due to what it called a “possible exploit” that on-chain data revealed might have targeted hundreds of millions of dollars in cryptocurrency. What happened with BNB Chain hack?
Which Blockchain does Binance use?
At the moment there are two blockchains in the Binance ecosystem that interact and communicate with each other:
- Binance Chain (BC)
- the Binance Smart Chain (BSC)
What is Binance Chain?
Launched in April 2019, Binance Chain is a blockchain independent of Ethereum. The blockchain is used solely for trading on the Binance platform. The Binance Chain uses the Tendermint algorithm for consensus. You can read more about this consensus here .
The Binance Chain is currently still subject to a central authority. The Binance platform continues to control large parts of the blockchain. This should change in the future and decentralization should be promoted.
Proof-of-stake is used for consensus finding at the BNB . This allows you to do staking with the BNB and thus receive rewards on Binance. In contrast to proof-of-work , operating the blockchain is less costly and energy-intensive than with proof-of-work.
Furthermore, the Binance Blockchain is easily scalable and the Tendermint mechanism is considered secure and has a high error tolerance. This combination makes the Binance Chain and thus the BNB so attractive.
What is Binance Smart Chain?
The second blockchain in the Binance ecosystem is the Binance Smart Chain. This blockchain is responsible for the execution of more complex smart contracts. The Binance Smart Chain (BSC) is compatible with the Ethereum Virtual Machine (EVM), so many smart contracts can be imported from the Ethereum blockchain to the Binance Smart Chain.
The aim of the BSC is more efficient communication with other blockchains. The consensus at the BSC is achieved with Proof-of-Stake-Authority (PoSA), a form of Delegated Proof-of-Stake. When you create your Binance Coins (BNBs), you can vote directly via the validators at the BSC.
In this article you will learn how to connect your MetaMask wallet to the Binance Smart Chain .
What happened with the BNB Chain Hack?
BNB Chain tweeted from its Twitter account, “Due to abnormal activity we’re temporarily halting BSC,” later stating that the activity constituted a “possible exploit,” which it described it contained.
Initial token movements suggested that an attacker targeted up to two million BSC tokens late on Thursday, although actual losses may be substantially lower. BNB Chain estimated that assets worth between $100 million and $110 million had been taken off the chain, but noted in a tweet that $7 million had already been frozen.
The fact that such a tiny amount of assets were actually taken highlights the benefit of BNB’s decision to break the chain rather than risk having more assets escape. Blockchains are supposedly decentralized machines built to function independently of the whim of individual actors; you can’t just turn them off.
The company tweeted about the chain stoppage using the BnB Smart Chain account. “We are now halting BSC because of unusual activity. We regret the inconvenience and will keep you updated here. We appreciate your understanding and patience, the message said at 6:19 p.m.
How did BNB React to the HACK?
In the past 24 hours, the crypto token BNB has lost 4% of its value against the US dollar due to an alleged cross-chain bridge attack that resulted in the theft of 200 million BNB worth $600 million. According to additional reports, Tether “blacklisted the account” and forced Binance to halt the entire chain.
BNB Prices are currently on the uptrend line at a price of around $280, risking falling lower. If things get contained fast, BNB might recover fast and reach a price of around $295 again. However, BNB risks also falling to its next support price of $270.
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