Binance Smart Chain Emerges As A Serious Competitor to Ethereum

News / 11.02.2021

Launched only six months ago, Binance Smart Chain has already managed to overtake Ethereum in the number of transactions processed. Could this be the sign of significant competition for the leading smart contracts network? 

Daily Transactions Surges Past Ethereum’s 

Binance Smart Chain achieved the feat of processing more daily transactions than Ethereum yesterday. Changpeng Zhao, CEO of Binance, revealed this feat on Twitter, comparing the Smart 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’’. He added. 

There are now more than 1.6 million daily transactions on Binance Smart Chain, compared to 1.3 million for Ethereum. Also, the average transaction fees on the Smart Chain is around $0.004 compared to $5.53 for Ethereum. Its community is also growing, with more projects launching on the Binance Smart Chain network. 

Could Binance Smart Chain Pose a Strong Competition for Ethereum?

This is the question that the crypto community is posing at a time when Ethereum fees have surged in recent weeks. This has caused a significant discussion on alternatives given that there is no immediate solution to reduce the cost of gas fees. 

Binance Smart Chain could take advantage as its low transaction fees have been a significant selling point. It is also compatible with Ethereum tools and its virtual machine making it easier for developers to create products. 

However, Binance Smart Chain is not without its problems. Critics cite its centralization as a significant flaw in its system. The Binance Smart Chain nodes are authorized by a single entity and do not make it a decentralization model. Besides, its governance model is similar to EOS, with only 21 validators. 

Nevertheless, Binance Smart Chain continues to increase in popularity via the backing of Binance. The leading crypto exchange does not hide its ambitions to become the top player in the crypto industry, and the Binance Smart Chain’s mass adoption could be a significant milestone.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.