How do I use PancakeSwap?
PancakeSwap is a decentralized exchange that runs on the Binance Smart Chain.
Bianance Smart Chain is a blockchain created from a fork or fork of the Geth client of ehtereum , which makes it fairly easy to transfer projects running on Ethereum to Binance Smart Chain.
In fact, this has greatly aided the rapid growth of Binance Smart Chain, as many project developers working on Ethereum and largely dissatisfied with the network’s high fees have migrated in part with many of the tokens from Binance Smart Chain These projects are already trading on both Ethereum DEX’s, such as Uniswap and 1inch, as well as on Pancake Swap.
One difference of Binance Smart Chain from Ethereum is that BSC uses the Proof-of-Stake-Authority protocol instead of Ethereum’s current Proof-of-Work protocol. In this protocol, there are always 21 main validators listed according to the largest holders of Binance Coins in the network and therefore change with some frequency. These validators take turns validating the transactions.
In practice, this means that Binance Smart Chain is less decentralized than Ethereum, which currently has nearly 7,000 nodes on the network. Less decentralization in this case is a tradeoff that will eventually have to be spent to pay lower fees, at least until the launch of Ethereum 2.0, which promises to solve the problems of high fees on the network.
