Blockchains Solana and BINANCE Smart Chain have solved problems that Ethereum has yet to deal with; see the main
Although the Ethereum (ETH) must undergo updates, the increase in the volume of operations on the network has caused some problems, such as slowness and increased transaction costs. As a result, some blockchains, such as Solana and Binance Smart Chain, which use smart contracts, have been attracting the attention of new projects. Both grow along with the big push for decentralized finance (DeFi).
In Solana's case, the Proof of History (PoH) and Proof of Bet (PoS) consensus mechanisms increase scalability; in addition, one of its main promises is that users will not be surprised by the increase in fees and taxes. Binance Smart Chain takes advantage of Binance Chain's fast operations, with a complete environment for high-performance decentralized application development.
New Platforms Fix Problems Ethereum Didn't Fix
Ethereum still remains the most popular blockchain for third-party projects. However, according to expert Kain Warwick, founder of the Synthetix derivatives liquidity protocol, the Solana and Binance Smart Chain platforms are growing by solving problems that ETH cannot solve.
According to him, the pace of growth of Ethereum allowed other networks to stand out. “While the ETH community debates improvements, other projects are working and gaining ground to overcome it,” said Warwick,
Why does Solana compete with Ethereum?
In addition to the ability to process 50,000 transactions per second, in 2020 Solana launched Wormhole, a feature that integrates with the Ethereum network. Thus, according to the company, users can move tokenized assets between existing projects, platforms and communities.
Solana is also raising an estimated amount of between US$300 and US$450 million, according to a note from Decrypt, with the aim of becoming a specific environment for decentralized operations.
Another highlight is Solana's native token (SOL) appreciated greatly in 2021, going from approximately US$2 in early January to over US$55 (on May 17th). As of this writing, the currency is trading for just over $42.
What is Binance Smart Chain's proposal?
Binance Chain, from BNB currency, is optimized for ultra-fast trading operations, although it does not have programming flexibility. Therefore, a new blockchain for the development of high-performance decentralized applications was created – the Binance Smart Chain (BSC).
The BSC is based on smart contracts, which allow for gains in scalability, operating in an integrated manner with the Binance Chain. As it is compatible with Ethereum, it simplifies application migration between the two networks. Furthermore, users can transfer assets between them.
It uses the so-called Proof of Staked Authority (or PoSA), which allows participants to staking BNB to become validators. Thus, when they propose a valid block, they receive the transaction fees included in that block. The interval between blocks in the BSC is three seconds, compared to 13 seconds in the Ethereum blockchain.
