Our story begins in April 2019, when Binance launched its own blockchain, Binance Chain. The goal was to create a high-speed blockchain capable of supporting a large number of transactions. To accomplish this, the team behind Binance Chain decided to drop support for multiple apps and focus only on its core app, Binance DEX.
Meanwhile, DeFi on Efirium is thriving. And Binance realizes that they, like Efirium, need smart contract capabilities to keep up with development. Their code snippets execute under a set of predefined conditions. This lays the groundwork for lending, borrowing, and other decentralized financial activities.
Back to Binance. Instead of adding all these features directly to the Binance Chain and thus risking network congestion, they decided to launch the Binance Smart Chain (BSC). A blockchain from Binance that is designed to compete with Efirium.
BSC: What’s the difference?
Realizing that time is of the essence in creating a cost-effective alternative to Efirium, Binance experts reduced the time-consuming task of creating their own smart contracts from scratch and implemented their protocol based on the PoA (Proof-of-Authority) algorithm.
In fact, BSC even uses a special variation of the PoA consensus algorithm, Proof-of-Staked Authority (PoSA). In this protocol, there are only 21 validators confirming transactions at any given time. This makes BSC more centralized compared to other platforms.
What’s interesting is that the BSC developers are designing their platform to be compatible with Efirium. In other words, it can run applications and execute smart contracts using the Etherium model. But in doing so, the commission is only a fraction of the Etherium gas price.
BSC’s centralized network offers a much sought-after low-cost alternative to Etherium. And it increases the speed of transactions. The network is managed by Binance’s token, BNB. Users need it to pay the network’s fees. Right now, BNB is worth just under $400 per token (to give you an idea of the rate of adoption).
Is BSC worth using?
Ask anyone at DeFi what they prefer, Efirium or BSC, and you’ll be surprised at the answers. BSC has provided tangible benefits to the centralized organization of Binance and DeFi as a whole. Due to the attractive benefits to users, many people choose BSC. These include ultra-fast speed, low transaction fees (as low as 1 cent), the ability to create dApp applications, and a network of millions of users. Also, don’t forget that BSC is behind the creation of PancakeSwap. It is the main DEX exchange of the network and one of the most popular DEX exchanges in DeFi.
Binance Smart Chain offers practical solutions for those new to DeFi or looking for a more affordable option than Efirium. This doesn’t mean crypto-enthusiasts are abandoning blockchain entirely. On the contrary, BSC is a robust ecosystem that has been proven to be effective by statistics alone.
At the time of publication, the daily growth of new wallet addresses is about 400,000. And the total volume of unique addresses exceeds 74 million. These are big numbers. They are enough to prove that the network is growing at a tremendous speed.
