Binance Altcoin BNB Fermi Update Date Determined

Exciting developments are happening in the crypto world. Binance's altcoin BNB is preparing to reduce its block time to one third with the Fermi hard fork update scheduled for January 14. This significant update aims to achieve a substantial increase in speed for time-sensitive applications.

Tested on the testnet for the past two months, the Fermi update reportedly reduces the block time from 750 milliseconds to 250 milliseconds, according to information provided by the BNB community. This move aims to improve the performance and efficiency of applications that require confirmations in less than a second. However, considering the risk that short block times may complicate communication between nodes, expanded voting parameters will also be implemented alongside the update.

BNB Smart Chain was launched in 2020 by Binance as a layer-1 blockchain. Today, it is managed as a decentralized ecosystem by validators and users. According to current data, the network processes approximately 222 transactions per second, while the protocol is theoretically capable of 6,349 TPS.

The search for faster transaction capacity highlights the significant transformation that blockchains are undergoing to compete with traditional financial infrastructures. For example, the payment giant Visa can complete transactions in seconds with an average capacity of 1,700 TPS. This situation helps us understand why blockchains are aiming for higher transaction capacities.

BNB Chain's network activity is also highly noteworthy. According to Nansen data, the number of active addresses has reached 2,871,208, nearly equaling high-speed layer-1 networks like Solana. Long block times and low transaction capacities can lead to delays and costly slippage issues for users, especially in DeFi applications. With the Fermi update, BNB Smart Chain aims to reduce such bottlenecks and provide a smoother experience for decentralized applications.