Part 4/10:
Central to understanding the Binance Smart Chain is the concept of smart contracts. These self-executing contracts with the terms directly written into code are essential for creating decentralized applications (dApps) and tokens. This ecosystem is pivotal for all DeFi activities, ranging from simple token swaps to complex financial products.
Two years after launching the original Binance Chain, Binance finally activated the Binance Smart Chain, integrating these indispensable smart contracts. A common pitfall for new users is confusing the two chains. Sending funds from one chain to another inadvertently can lead to irreversible losses—a guideline important for any new user to keep in mind.