With the coming of Binance Smart Chain, crypto enthusiasts have wondered how Ethereum vs Binance Smart Chain (BSC) will play out if put side to side. Is Binance Smart Chain better than its counterpart, is the opposite the case or are both swinging hand in hand?
Binance Smart Chain Vs Ethereum: Smart Contracts
When it comes to the Ethereum vs Binance Smart Chain discussion, Ethereum rocks the realm of the smart contract at the moment. This is one reason many dApps are attracted to Ethereum, and there has been an intense growth in the ecosystem. Tremendous growth has resulted in the rise of gas fees, which is scaring people into looking for alternatives. One of these alternatives is the Binance Smart Chain. It is compatible with the Ethereum Virtual Machine (EVM), meaning that dApps built on Ethereum can easily be transported to Binance Smart Chain, in addition to BSC’s Proof of Staked Authority (PoSA) which balances between high performance and decentralization. Those developers and users that are tired of paying insanely high gas fees use this option.
dApps and DeFis
One of the major aims of every programmatic chain is to act as the host for dApps- decentralized apps- and Decentralized Finance protocols. Though Ethereum had the upper hand because of the first-mover advantage, things are changing. According to DappRadar, Binance Smart Chain achieved $3 billion in transaction volume for DeFi. 95% of transaction volume growth belongs to Ethereum DeFi dapps.
Binance Smart Chain, according to DappRadar, is currently growing at an amazing speed.
Ethereum vs Binance Smart Chain: Transaction Fees
As the Ethereum vs Binance Smart Chain race continues, it is important to consider the gas fees of both platforms. With the high growth rate of Ethereum, the network has become more congested, which translates to high fees. This issue is discouraging developers that had the intention of creating their dApps within the Ethereum network. With the high gas fees, it may discourage users from utilizing an innovative dApp. Some developers are opting for Binance Smart Chain because of this reason. At the moment, the typical fees on Binance Smart Chain is $0.04 which are considered low fees unlike Ethereum, whose median is $5.53.
•Ethereum vs Binance Smart Chain: Centralization
An issue that is linked to Binance Smart Chain, which is centralization. The Ethereum blockchain is more decentralized than Binance Smart Chain, and this has raised some concerns for Binance Smart Chain. According to Binance CEO, Changpeng Zhao, “Binance Smart Chain could attract more people into the crypto space by taking advantage of features centralized and decentralized exchanges can offer.” The term ‘CeDeFi’ was created to highlight this phenomenon, where Binance Smart Chain combines the best of both worlds to offer a habitable ecosystem for DeFi protocols.
One of the most important things that determine the winner in the Ethereum vs Binance Smart Chain battle is the transaction costs. For now, BSC offers a ridiculously low gas fee, unlike Ethereum, which is important. BSC may be winning the race as more dApps and DeFi protocols are setting up tents there.