So how do the two compare when looked at side by side? Scalability trilemma But, the vast number of BSC users strongly disagree. One of the main arguments against it is that it's just a blatant copy of Ethereum (BSC is a fork of Geth, an Ethereum client) and offers the same service for hosting dApps to developers as a Layer 1 (L1).Įthereum being the first smart contract platform allowing developers to customise dApps and offer financial applications to users, has a big community that believes the platform is superior to its very similar competitor. One example of BSC giving Ethereum a run for its money is November 21 2021, when BSC had a record-breaking 16M+ transactions, making Ethereum's 1.2M+ recorded on the same day look very poor.Īlthough impressive, BSC, with all of its success and quick growth, was not able to avoid criticism. To further attract DeFi developers, Binance's CEO, Changpeng "CZ" Zhao, announced a $100M developer seed fund for supporting the development of decentralised applications on BSC.Īnd while Ethereum was undoubtedly the home of major DeFi protocols, BSC gradually started taking away its market share. This move is what set the stage for the BSC vs Ethereum showdown we are still witnessing today. Using this compatibility, DeFi developers could easily transfer their applications from Ethereum onto the network and enjoy cheaper gas fees and faster confirmation times. The idea behind BSC was to build a network that would be compatible with the Ethereum Virtual Machine (EVM). What is Binance Smart Chain?īSC was first unveiled in April 2020 but officially launched in September of the same year, around the same time when "DeFi summer" happened - the peak of Ethereum's DeFi boom. The hefty gas fees, along with scalability issues, are the main reasons behind ETH 2.0, an improved version of the Ethereum blockchain supporting up to 100,000 TPS, but also the emergence of competitors such as BSC. Thanks to all the possibilities offered by the platform, Ethereum is heavily used, leading to network congestion and high gas fees. These smart contracts, in combination with blockchain technology, are used in decentralised finance (DeFi) and, of course, decentralised apps (dApps).
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It has a native currency called Ether (ETH) which is often found in newbie and professional crypto portfolios.Įthereum is particularly famous for computer programs called smart contracts that originated on the platform and were conceptualised by Vitalik Buterin, one of Ethereum's co-founders. The Ethereum platform is powered by blockchain technology, and exactly that is what makes it so secure. So big that saying only that might even be considered an understatement as the only cryptocurrency beating Ethereum in terms of market value is Bitcoin. What is Ethereum?Įthereum is a pretty big name in the crypto world. These and other questions surrounding the topic will be addressed in this article to help you pick the best platform for decentralised applications that will fit your preferences.īut first, let's get to know both BSC and Ethereum. But why? Are BSC and Ethereum so similar? Or is one supposed to just support the other? Last, but not least is tokens superpower to reduce trading costs on the Binance exchange.The debate on Binance Smart Chain (BSC) vs Ethereum is a long fiery one that never seems to end in declaring the superior of the two blockchains. The other way to utilize BSC is to pay fees on Binance Chain with BSC tokens.
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One of the most important features of the BSC is its full compatibility with Ethereum’s EVM.īinance Coin BSC could be used not only for a value transfer but also for running smart contracts and powering apps on BSC. First of all, the consensus algorithm was changed from Delegated Proof of Stake (DPoS) to Proof of Staked Authority (PoSA), with BFT transformed into Tower BFT. There are some fundamental differences between Binance Chain and Binance Smart Chain. The idea behind BSC was to make a programable blockchain, like Ethereum, with smart contracts execution and staking. Despite the fact that both Binance tokens have the same ticker, they differ a lot.īinance Smart Chain was launched in September 2020 as a parallel network to the Binance Chain.
Binance Coin BSC is built on a BEP20 standard, which is more like Ethereum’s ERC20 standard. Binance Coin itself is a utility token of the Binance Exchange, which is represented in 2 variations on different platforms: BEP2 and BEP20.
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