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Why Projects Are Switching to the Binance Smart Chain

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Despite the popularity of the Ethereum blockchain, several developers believe the blockchain network is slowly becoming outdated as more and more projects shift their bases to alternative blockchain networks. What caused this gradual shift was Ethereum’s slow transaction rate and high gas fees.

The slow transactions and high gas fees of the Ethereum Network were caused by network congestion. Ethereum Network works on a Proof of Work protocol and is slowly moving towards Proof of Work protocol. The current algorithm, however, is not capable of handling the present number of transactions coming its way. As a result, transactions remain pending, and the transaction speed decreases while gas fees increase.

Luckily, the crypto ecosystem is a safe haven for advancements and innovation. Binance, which started as a crypto exchange, developed its own blockchain, Binance Smart Chain, that has quickly become the go-to blockchain network for developers.

Binance Smart Chain, the Fastest Growing Blockchain

Binance Smart Chain was launched in September 2020 and now hosts several projects and is quickly growing to become the biggest blockchain network. It is designed to run parallel to the existing and native Binance Blockchain. These simultaneously running blockchains help bring smart contract functionality to the network without compromising the speed of the mainnet.

Binance Smart Chain was developed explicitly to solve Ethereum’s rising gas fees and offers faster, scalable, and cheaper transactions. In the past, several alternative blockchains have tried to become ‘Ethereum Killers’ but couldn’t succeed in capturing new project’s interest.

However, Binance Smart Chain is hosting numerous blockchain, Defi, and crypto projects. One of these projects includes an up-and-coming Sphynx which aims to provide an all-in-one solution for trading, staking, farming, and holding. Sphynx uses Binance Smart Chain to enable fast, cheap and secure transactions and offer cross-chain interoperability within the ecosystem.

What separates Binance Smart Chain from other “Ethereum Killers” is its Proof of Staked Authority consensus algorithm that creates an ideal balance between decentralization and high performance. The potential of PoSA can be hinted at by the fact that BSC only has 21 validators compared to Ethereum’s 11,000 nodes.

Moreover, BNB has set aside $100 million for projects that commit to building on BSC, like its parent company’s Binance Launchpad. Apart from this, Binance also offers various features such as Binance Wallet, Explorer, Testnet Faucet, and IDE.

The dual-chain architecture of Binance Smart Chain empowers its users to build decentralized apps on a single blockchain while taking advantage of the fast trading services of other blockchains.


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