BinanceSmartChain has taken off more than anyone ever expected, and BNB did the same.
Some are happy, and some Ethereum maximalists think it’s the end of the world.
But what’s going on exactly?
The main reason that BSC has grown so much are the insane fees on Ethereum.
Since early 2020, the average gas price in ETH has increased by 10x.
But the price of ETH also went 10x.
So in dollar terms, that’s 100x higher fees.
Naturally, not everyone is happy to pay $50, $100 or even more for a single transaction.
Meanwhile, the transaction fees on BSC are around $0.5 even with today’s prices of BNB.
So it’s no surprise that PancakeSwap overtook Uniswap in trading volume recently.
In fact, it’s hard not to think that BSC already offers what Eth2.0 is meant to deliver.
Low fees, fast transactions and scalability through Proof of Stake, a growing DeFi ecosystem, and all that while being completely compatible with Ethereum in terms of code.
That’s why we’re likely to see more and more Ethereum projects forked onto BSC.
It’s a very easy transition, and one that DeFi projects have no reason not to undergo.
Especially with Eth2.0 being probably a year away.
Most importantly, it’s not as if BSC will become redundant when Eth2.0 comes out.
BSC has been developing much faster than Ethereum, and no one expects that to stop.
With BNB becoming the 3rd largest crypto by market cap, Ethereum maximalists have started calling foul play.
But seeing crypto as a zero-sum game where the users of one chain get angry when another chain grows is both wrong and unproductive.
This isn’t some sort of a battle to the death.
Both chains have their own pros and cons, and it’s not like we only need one of them.
If that means that both will have a similar market cap, there’s no reason for anyone to get upset about that.
The more adoption that BSC acquires, the more that Ethereum-based protocols will profit from the increasing popularity of DeFi. And vice versa.
It might sound cliché, but in crypto - especially in a bull market - everyone can win.
That’s why we’re happy to see BSC finally start achieving the success it deserves.
After all, if we want wider adoption, fees in the hundreds of dollars aren’t exactly the best way to achieve that.
Besides, we’re working on something that’s going to be huge in DeFi.
It’s too early for details, but our aim is to enable all of our current and future users to be their own bank.
For this, we will create a product with the utmost security using smart contracts.
It will be decentralized and user friendly at the same time.
We aim to give everyone access to the best possible rates on both lending and borrowing.
But if we truly want everyone to be able to participate, it would be ludicrous to expect users to pay $200 for a single transaction.
That’s why it’s going to be built on BSC.
With the lowest fees in the industry, BSC will bring our product to the masses.
Forget about fees setting an insane entry threshold that keeps most out.
Regardless of how much you want to borrow or lend, you’ll be able to do it with the best rates possible.
Financial freedom shouldn’t be limited to the wealthy few.
It should be open to everyone. After all, that’s the whole point of crypto.
And that’s what we’re going to bring, so stay tuned.