Research confirms what Binance Smart Chain users already know: BSC is hugely scalable and affordable, especially when compared to Ethereum.
Independent research from Nansen shows that transaction costs on Binance Smart Chain (BSC) are around a tenth of those on Ethereum, even while processing ten times the transaction volume. These advantages have led to incredible growth for the network over 2021.
BSC had lower transaction volumes than Ethereum at the start of the year but surpassed the older network in February. At its peak, the BSC network was processing ten times as many transactions as Ethereum at a tenth of the cost, making BSC up to one hundred times more efficient.
“One competitive advantage of BSC over Ethereum is that the gas price, or rather the cost necessary to perform a transaction on the network, is significantly cheaper,” said Nansen in their September 21st report. “This is what made BSC so attractive, especially to the retail market with a smaller wallet/fund size as well as developers who do not need to worry about high transaction fees affecting adoption.”
Nansen points out that PancakeSwap alone surpassed Ethereum’s transaction volume in April 2021. Both Binance and PancakeSwap celebrated one year anniversaries last month in September, and their growth in just one year shows how influential their innovations have been.
Binance Smart Chain has had an excellent year, establishing itself as one of the biggest players in blockchain. According to Nansen, the challenge for BSC will be to retain that market share as other players such as Solana also focus on increased scalability.
The report’s authors conclude by saying, “it [will be] interesting to see how BSC will evolve and work on strengthening their position in the market.”
As always, you can keep up to date on the progress of Binance Smart Chain on BSC News.