The BNB Chain, the blockchain network that powers the Binance Token (BNB), is expected to undergo a major network upgrade in June.
This is a big deal, because upgrades typically improve the abilities of a network, making transactions faster and able to accommodate more users.
In short, Binance Token may be headed for better days very soon. Let's jump in, shall we?
This BNB chain upgrade, named Luban, will introduce several technical improvements and new features that will enhance the performance, security, and interoperability of the network.
In this article, we will explore what the Luban upgrade entails, how it will affect us all, and how it may impact the price of BNB.
Let's start with the basics.
Luban, the person this upgrade is codenamed after, is the name of a man. Luban was a legendary figure in ancient China who was celebrated for his exceptional skills in carpentry, architecture, and engineering.
His groundbreaking designs and innovations have laid the foundation for many modern-day engineering feats that we continue to marvel at today.
The Binance Token Chain developers chose to name their network upgrade after Luban to honour his legacy and to reflect their vision of building a cutting-edge blockchain platform that can support various use cases and applications.
As per reports, the Luban upgrade is expected to happen at block height 29,020,050, estimated to arrive on June 11 at 21:30 UTC.
And when it happens, the validators and full node operators on Binance Token Chain will be expected to switch their software version to v1.2.1 before June 13.
The Luban upgrade comprises of three different Binance Smart Chain (BSC) Proposals (BEPs): BEP-126, BEP-174 and BEP-221.
All of these have a part to play in improving the scalability, security, and interoperability of the Binance Token Chain.
For example,
This proposal introduces a fast finality mechanism that allows users to confirm transactions within seconds, instead of waiting for long periods for their transactions to be confirmed.
This mechanism works by allowing validators to sign a special message called a finality gadget after each block is produced.
Because of this, users can have faster transactions speeds, without the blockchain suffering from security or decentralization issues
This proposal introduces a cross-chain relayer management system.
The proposal allows the Binance Token Chain to communicate with other blockchains such as Ethereum and Bitcoin.
Because of this, relayers can enjoy incentives and governance mechanisms to ensure they operate honestly and efficiently. The system also allows users to register their own relayers and vote on relayer proposals.
This proposal introduces a light block validation mechanism.
The light block mechanism allows light clients to verify blocks without needing to download the entire blockchain data.
This speeds up the entire blockchain, also avoiding setbacks from security or decentralization issues.
The Luban upgrade will bring several benefits for users and developers of Binance Token Chain.
For example, users will enjoy faster transaction speeds and lower fees due to the fast finality mechanism.
Users will also be able to access more DApps across several blockchains due to the cross-chain relayer management system. The upgrade will also allow regular users to run light clients on their mobile devices or browsers due to the light block validation mechanism.
Developers will also be able to create better DApps using Binance Token Chain's enhanced features and tools.
For starters, the upgrade may increase the demand and use cases for BNB, considering how BNB will now be usable in different blockchains.
The upgrade may increase the confidence of BNB holders (and therefore BNB's price) as they see BNB Chain's continuous improvement and innovation.
According to CoinMarketCap, BNB is currently trading at $305 with a market cap of $47.6 billion as of May 25th 2023.
While there isn't much to say about the cryptocurrency's bullishness at the moment, there is bound to be massive price movement to the upside as soon as the upgrade hits the mainnet.
This is without mentioning that based on historical trends, BNB's price tends to rise before and after major network upgrades.
For example, BNB's price surged by 50% before and after the Berlin hard fork in April 2020. The same might happen for the cryptocurrency again, as soon as the Luban Hard Fork happens.
Based on technical analysis, BNB's price broke below its 50-day moving average [$321] a few weeks ago in early May.
However, it is still being held up by its 200-day moving average [$300] and BNB is at a critical state as it hovers above this zone.
There is some probability that BNB stays above this zone and rallies straight upwards as illustrated above.
The cryptocurrency sits atop an ascending trendline that may serve as the launchpad for a $350 BNB or even higher.
At the same time, the RSI appears to be in the bearish zone and may signal that the bears are slightly in control.
In all, BNB falling below $300 is bound to have devastating consequences for the cryptocurrency.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.