The Binance Smart Chain (BSC)—an Ethereum Virtual Machine (EVM)-compatible smart contracting platform launched by the world’s largest cryptocurrency exchange, Binance, processed more transactions than Ethereum on Feb 9, explorer data on Feb 10 reveals.
The Binance Smart Chain versus Ethereum Race
BSC describes itself as a dual-architecture aiming to empower users to build dApps and mint digital assets. At the same time, they will take advantage of fast processing time, cheap trading, and cross-chain transfers.
The recently deployed smart contracting platform that runs parallel to the Binance Chain, on Feb 9, processed 1.65 million transactions, over 300k more than Ethereum.
The flipping is a boost for Binance and Changpeng Zhao, the CEO of Binance. He took to Twitter, assuring network users and projects that on-chain fees will remain low even with rising BNB prices.
Building on last week’s substantial gains, the Binance Coin (BNB)—the native currency of the Binance ecosystem for paying transaction fees in the BSC, rose above $140 to an all-time high.
BNB Price Surges
The upsurge mirrors the sentiment of the crypto sphere, of which in recent times, the prices of leading digital assets have soared to all-time highs.
Like Binance Coin (BNB), the Ethereum price rose to new all-time highs above $1.8k in early February 2021.
However, the expansion of Ethereum prices presented challenges to network users.
On Feb 9, the average gas fees stood at over $25, a more than 4X expansion and substantial gains over September 2020 highs of around $16. The Proof-of-Work consensus algorithm used by Ethereum impacts scalability.
As a result, the network has a lower throughput of at most 15 TPS. Coupled with the high block utilization rate of over 97 percent, DeFi users have to shell over $25 for every transaction whenever they interact with Ethereum.
BSC is 49X Cheaper than Ethereum
Meanwhile, it is 49X cheaper to move value in the BSC. The network is interoperable and uses the Proof-of-Authority consensus algorithm.
Following the influx of new transactions and the resulting flip, the BSC network generated just over $300k in fees on Feb 9.
As reported, more projects are now building in the BSC. Earlier on, HTC said it would launch the first smartphone with native BSC support.