Why Projects Are Switching to the Binance Smart Chain
September 18 2021 - 2:28AM
NEWSBTC
Despite the popularity of the Ethereum blockchain, several
developers believe the blockchain network is slowly becoming
outdated as more and more projects shift their bases to alternative
blockchain networks. What caused this gradual shift was Ethereum’s
slow transaction rate and high gas fees. The slow transactions and
high gas fees of the Ethereum Network were caused by network
congestion. Ethereum Network works on a Proof of Work protocol and
is slowly moving towards Proof of Work protocol. The current
algorithm, however, is not capable of handling the present number
of transactions coming its way. As a result, transactions remain
pending, and the transaction speed decreases while gas fees
increase. Luckily, the crypto ecosystem is a safe haven for
advancements and innovation. Binance, which started as a crypto
exchange, developed its own blockchain, Binance Smart Chain, that
has quickly become the go-to blockchain network for developers.
Binance Smart Chain, the Fastest Growing Blockchain Binance Smart
Chain was launched in September 2020 and now hosts several projects
and is quickly growing to become the biggest blockchain network. It
is designed to run parallel to the existing and native Binance
Blockchain. These simultaneously running blockchains help bring
smart contract functionality to the network without compromising
the speed of the mainnet. Binance Smart Chain was developed
explicitly to solve Ethereum’s rising gas fees and offers faster,
scalable, and cheaper transactions. In the past, several
alternative blockchains have tried to become ‘Ethereum Killers’ but
couldn’t succeed in capturing new project’s interest. However,
Binance Smart Chain is hosting numerous blockchain, Defi, and
crypto projects. One of these projects includes an up-and-coming
Sphynx which aims to provide an all-in-one solution for trading,
staking, farming, and holding. Sphynx uses Binance Smart Chain to
enable fast, cheap and secure transactions and offer cross-chain
interoperability within the ecosystem. What separates Binance Smart
Chain from other “Ethereum Killers” is its Proof of Staked
Authority consensus algorithm that creates an ideal balance between
decentralization and high performance. The potential of PoSA can be
hinted at by the fact that BSC only has 21 validators compared to
Ethereum’s 11,000 nodes. Moreover, BNB has set aside $100 million
for projects that commit to building on BSC, like its parent
company’s Binance Launchpad. Apart from this, Binance also offers
various features such as Binance Wallet, Explorer, Testnet Faucet,
and IDE. The dual-chain architecture of Binance Smart Chain
empowers its users to build decentralized apps on a single
blockchain while taking advantage of the fast trading services of
other blockchains.
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Apr 2024 to May 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From May 2023 to May 2024