BNB chain, hard fork activation, fee reduction

The BNB chain activated the Haber hard fork, introducing the BNB Evolution Proposal (BEP)-336 to optimize data storage and processing on the network.

On June 20, the blockchain network announced that it had successfully activated a hard fork, claiming that blockchain fees had been reduced by 90%. Inspired by Ethereum Improvement Proposal (EIP)-4844, BEP 336 enables Blob-Carrying transactions, a concept that simplifies the verification process.

90% reduction in Layer 2 costs

According to BNB Chain, once BEP-336 is implemented, Layer 2 costs for the BNB Smart Chain (BSC) will be reduced by 90%. The network claimed that the network fees for its optimistic roll-up layer 2 solution, opBNB, would be reduced to approximately $0.0001.

With the new update, transactions no longer need to be confirmed individually within blocks, but rather within linked blobs, which are temporary memory segments that capture large chunks of data.

The update looks similar to Ethereum’s EIP-4844, but BNB Chain said BEP-336 is aligned with BSC. Blobs in BSC are managed only by the BSC client. Additionally, the pricing mechanism is tailored to the BSC. Unlike Ethereum’s burn mechanism, BSC does not burn the base fee within the blob.

This update is expected to also affect BNB Greenfield, a decentralized storage solution. According to BNB Chain, Greenfield will enhance decentralized storage and data management through “BlobHub,” a data storage layer. It optimizes data storage for decentralized applications (DApps) and layer 2 networks.

Related: BNB Chain exploits $80,000 worth of fake BTC tokens

BNB price has reached a new all-time high.

The new hard fork comes with a new price milestone for the network’s native cryptocurrency, BNB (BNB). On June 6, the BNB token hit an all-time high of $717.48. The price was adjusted on June 18 and fell to $579. Currently, BNB is sitting at $605.

BNB’s price growth rate in the first week of June surpassed the performance of the cryptocurrency market over the same period. BNB recorded a 19% gain while the market rose only 4.2%. Still, traders questioned the sustainability of the rally as they looked for indicators to support momentum.

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