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Comparison of Binance Smart Chain (BSC) and Ethereum (ETH) Network. Why is BSC more preferred?

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Many of the new projects prefer Binance Smart Chain (BSC) or Ethereum (ETH). But the number of people who prefer BSC is increasing day by day. Some projects are even moving from the ETH network to the BSC network. Let's examine the reason for this together.

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Investors want to get the best service from crypto finance platforms with the lowest fees. Being aware of this, the platforms try to offer the best service to their customers with the lowest fees. Of course, first of all, safety is very important. Although Ethereum (ETH) is older, it has not been able to overcome many problems. Especially transaction fees and delayed transaction confirmations pose a big problem. Compared to Ethereum (ETH), Binance Smart Chain (BSC) has largely solved this problem.

Binance Smart Chain (BSC) processes transactions faster and with lower fees. That's why many platforms prefer it. For example, in CubDefi it was one of the decentralized finances running on the BSC network. Transactions are faster and fees are lower. Let's take a look at today's statistics for Binance Smart Chain (BSC) and Ethereum (ETH).

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The number of daily transactions on Binance Smart Chain (BSC) is 11,128,000, while on ETH it is 1,260,000. BSC is about 900% more. Similarly, the number of transactions per second is higher. Also, when you look at the number of transactions pending on the network, there is an unbelievable difference. Currently, the gas cost for transfers is 5 Gwei in BSC and 30 Gwei in ETH. There is an incredible difference when you calculate based on ETH price and BNB price. You can also see the huge difference between Pancakeswap and Uniswap transaction fees. That's why many platforms, especially decentralized finance (DeFi), prefer or move to BSC lately.

When you make a comparison between the two, it makes more sense to choose BSC. The most important reason why transactions on the BSC network are faster and cost-effective is that Binance Smart Chain uses a consensus mechanism called Proof of Staked Authority (PoSA). Ethereum (ETH) uses the Proof of Work (POW) protocol. Because of this, transaction fees are higher and transactions are slower. But at the end of this year or in 2022, it is expected to go into ETH Proof of Staked (PoS) protocol. But there is no exact date yet.

Once the ETH 2.0 upgrade happens, ETH will use a consensus mechanism called Proof of Staked (PoS). It is not known whether this upgrade will be successful, but until then, BSC can make the difference even more. But if the ETH 2.0 upgrade is successful, it can increase the ETH price by 5 times. Maybe then the transitions from BSC to ETH will increase. But if we talk in terms of today's conditions, BSC is a few steps ahead of ETH.

Posted Using LeoFinance Beta