Launched only 6 months ago, Binance’s parallel blockchain has already managed to overtake Ethereum in number of transactions. But is Binance Smart Chain a serious competitor?
Binance Smart Chain’s daily transactions exceed those of Ethereum …
Changpeng Zhao, CEO of Binance, communicated on this progression, comparing the Smart Chain to Ethereum:
“Today is an important day. Binance Smart Chain has overtaken Ethereum in terms of daily transactions. This validates the logic that lower fees attract more projects and users. We will continue to work with the BSC community to promote low fees, even as BNB is on the rise, to build more stuff. “
There are now reportedly more than 1.6 million daily transactions on Binance Smart Chain, compared to 1.3 million for Ethereum. In addition, as Binance recalled yesterday, the transaction fees amount to 0.04 dollars for the Smart Chain against around 5.53 dollars over the same period for Bitcoin Era.
Is Binance Smart Chain a strong competitor to Ethereum?
This is the question the community is asking, at a time when Ethereum’s fees have exploded and often reach well over 5 dollars . But commentators cite a major obstacle to Binance Smart Chain: its centralization, which is deemed excessive. Some Twitter users recalled that the nodes of the BSC are authorized by a single entity, which does not make it particularly an example of decentralization. In addition, its governance model is similar to that of EOS, with only 21 validators .
But the attractiveness of cost has always been a major selling point for Binance, and these low fees could indeed allow it to gain a foothold in the industry. Binance Smart Chain has a second advantage: it is compatible with Ethereum tools and its Virtual Machine. The hegemony of Binance, which no longer hides its ambitions of becoming „the Google of cryptos“, could therefore allow the BSC to be more adopted …