BNB Smart Chain (BSC), formerly known as Binance Smart Chain, is getting ready to challenge Ethereum as the third-largest decentralized finance (DeFi) chain in the world. After being live on the testnet, the chain is now receiving encouraging feedback and is scheduled for a significant upgrade next month.
Binance introduces its “Shanghai” version
The Kepler hard fork is expected to arrive on January 23, 2024, on Binance BSC. However, the upgrade will first be noticeable on the test net before moving on to the mainnet. As planned, the Kepler hard fork for the latter was launched on Tuesday, and users and developers are actively testing it.
Since the Kepler hard fork would bring the DeFi chain into compliance with the most recent Ethereum modifications, it can be seen as Binance’s Shanghai update. The Kepler upgrade will bring BSC into line with the same enhancements that the Shanghai hard split brought to Ethereum, including staking withdrawal.
Fast Finality, which aims to effectively incentivize validators and provide quicker and more dependable transaction confirmations, will be one of the main components of BSC. Kepler will also make the BSC more compatible with Ethereum Virtual Machines (EVMs).
In addition to this update, Binance plans to decommission BNB Beacon Chain by April or May of the next year. The beacon chain was intended to serve as a stakeholder and governance layer as part of its fusion roadmap.
But according to Binance, the Beacon Chain is no longer necessary due to BSC’s development and modifications to the blockchain environment. This has also resulted in security flaws and development difficulties.
In order to address this, Binance plans to phase out the chain by May 2024, with the first phase starting in April 2024. In April 2024, the “Sunsent fork” update will first turn off functions related to cryptocurrency issuance and minting, as well as the formation of BSC validators. Three more upgrades will come after this, and the Beacon Chain will come to an end one month later with the last sunset.
The price of Binance Coin is expected to rise
It’s interesting to note that despite Beacon Chain’s retirement announcement, the price of Binance Coin had a positive day. For the fifth time in the previous month and a half, the altcoin tested $255, a resistance level, and managed to rise back above $250 to trade at $252 at the time of writing.
It is anticipated that this barrier will be broken this time around, having not been exceeded since the beginning of November of this year. Bullishness appears to be at an all-time high right now, according to the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI).
BNB will cross $255 as a result, and it will also position itself to regain $264 as support, marking a six-month high.
If the breach doesn’t hold, Binance Coin might retreat to $231 and stay consolidated, but failing to break this level of support would refute the bullish argument and send BNB down to $219.