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Binance smart chain achieves a new milestone – 21% of ETH transactions 35x cheaper!

Photo of: Sangeetha Golchha
by Sangeetha Golchha

Binance has been achieving milestone after milestone. The last few months have been specifically enriching the world’s largest exchange and has been much in news because of the flared offerings from its side. 

Yesterday we reported how Binance derivates exchange has been crowned the numero uno position and today, its very own Binance Smart Chain registered a breakthrough by processing 21% of Ethereum transactions 35 times cheaper. The CEO Changpeng Zhao believes this is great news for the smart chain users and developer and is absolutely great for the future prices of BNB. 

The news came in yesterday that the Binance Smart Chain (BSC) overall handled 21% of Ethereum transactions at 0.6% of the gas fees charged for the transfers. The milestone makes BSC about 35 times cheaper. The CEO further added that if BSC starts handling more volumes it will be great for BNB price as well as node operators. 

As per the tweet above that presents the calculations, it shows that while BSC took care of 213,900 transfers as compared to 1,1019,446 by Ethereum, it charged $13,000 in fees and Ethereum charged an unbelievable $2.2 million which is huge and exorbitant by any standards. Calculating this further, the transaction fees for BSC works out to be $0.06 per transfer and for Ethereum it costs almost $2.16 per transaction. CZ took pride in it and said that this makes Binance 35 times cheaper alternative for processing transactions. 

He further added that the knockout rates may not completely help BNB price and node operators in the short term but the above cost cuts may be very useful for users and developers compared to that of Ethereum. Considering the long-term scenario for BSC, CZ said if the network handles much more volumes than today it will be overall beneficial for all in the process including BNB price and node operators. 

The Binance Smart Chain is existing concurrently with the Binance Chain but the Binance smart chain fills a major gap of smart contract functionality and compatibility. The Binance Chain’s high throughput and compatibility with Ethereum Virtual Machine is maintained by the Binance Smart Chain as it is. So, as per the decided norms, Binance Chain’s high throughput will be maintained in the smart chain while what will be added is smart contracts. 

Both operate in sync and are inseparable in terms of operations. ‘BSC isn’t a so-called layer two or off-chain scalability solution,’ as claimed by the company. 

Binance further added about Binance that it is an independent blockchain that could run well had the Binance chain become inoperable or went offline at any point in time. Both the BC and BSC are pretty much the same from the perspective of design. Hence both are equally important for the system, they compliment each other as well as can exist without the support of the other. 

As for BNB price, the stability remained its main draw but following this new update and the good news it zoomed up by 4%.