Pros and Cons of Binance Smart Chain

Binance is arguably the largest crypto exchange worldwide in terms of volume and number of users. Therefore BSC has a lot of potential to bridge the gap between many blockchains with a multifunctional, dynamic and compatible ecosystem.

A DeFi project must adopt a robust blockchain protocol that provides a stable, inexpensive, fast and easy-to-use platform for building decentralized applications (dApps). Binance Smart Chain (BSC) has proven to be one of the best blockchains for decentralized finance and DApp development since its inception in September 2020.

In this content, we will go over some of the primary benefits and drawbacks of the Binance Smart Chain.

Positives

1. Inexpensive transactions

BSC is rapidly gaining popularity, so you should be doing something right - these are the best advantages of the BSC ecosystem.

2. Inexpensive transactions

The low cost of transactions and on-chain activity is undoubtedly the most compelling reason for developers and consumers to switch from Ethereum and other smart blockchain systems to BSC. For example, during times of heavy congestion in the Ethereum network, a similar transaction on Ethereum could cost 1,000 times more than BSC. Moreover, gas prices in BSC are quite consistent.

3. Faster adoption rates

While decentralization is a huge sacrifice, the decentralized nature of the Binance Smart Chain is not entirely dreadful. It has many advantages, including the fact that Binance already has a large user base with which to attract significantly more users to BSC. This allows for much faster adoption than a smart blockchain project without the support of a large company like Binance that it could achieve on its own. Since the beginning of this year, the number of unique addresses on the BSC has increased 10 times, and the total number of transactions has increased 15 times, which should give you an idea of ​​how fast network activity is rising.

4. Financing

Surprisingly, there are multiple benefits to centralization. Binance's support comes with a large amount of technical, human and financial resources, as well as a large user base. Binance committed $100 million from its vaults to the BSC Accelerator Fund in October 2020. The funds will be used to fund their blockchain protocols, wallets, explorers, tools and other infrastructure.

Negatives central

BSC is centralized, just like the Binance Chain. I used PoSA mining (Proof of Staked Authority), which requires 21 validators to keep the chain up and running. Binance has most of the best validators in the Binance chain, either directly or indirectly.

1. Rely on the Ethereum development community

BSC relies mainly on the Ethereum developer community, and there is little innovation happening in BSC, but it is migrated from Ethereum.

2. Security

Since BSC is centralized, it is vulnerable to hacking and 51% of attacks, as well as system failures, as network authentications must be verified by Binance's in-house team.


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