Comparison of Ethereum and Binance Smart Chain (BSC)

in hive-108451 •  2 months ago 

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Hi everyone, see you again @midiagam, welcome to my blog. In this post, I want to discuss a crypto topic that is rarely discussed. Even though I think this topic is interesting and it is very important to understand it by traders, or crypto investors in Indonesia. Over the past few years, you've probably seen two pretty extreme sides to the crypto world. There are several crypto assets whose price and value continue to rise. Like bitcoin, ethereum, and cardano. On the other hand, there are also many crypto assets whose prices have fallen at all, until they are not worth anything.

So, if we look at it from a long-term perspective, what is the difference between crypto assets whose value and price can grow up, or at least be stable for years, and crypto assets whose prices have fallen and are hard to get back up again?

The answer is actually very simple. Crypto assets that can grow are due to active development, in terms of technology, adaptation and function of the coin or token itself. While coins or tokens whose prices have collapsed because of their stagnant development, it is unclear where they are going. Or even completely abandoned by the developer.

Okay, now how can we understand the development of so many crypto projects. The first step in my opinion is to first know the ecosystem in which the crypto project is run. The two largest crypto ecosystems currently most active are Etheurium and Binance Smart Shain, or BSC.

Now, there are currently a lot of programmers who are competing to create digital financial services with crypto technology. There are two choices of the most active ecosystem and the main choice of developers, namely the Ethereum blockchain and the Binance Smart Chain.



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You know, what is the difference between Ethereum and BSC?

I will discuss it one by one. First, we will discuss the things of fendamenta, namely from their respective backgrounds.

Ethereum is a blockchain that is Open Source and is equipped with smart contrack technology. So programmers can develop applications that have digital contract features. With this digital contract crypto, users can make contract agreements related to the user, and the contract is digitally executed automatically with a computer program. For example, if we want to make agreements related to finance, such as disbursing insurance, inheritance, salary contracts, taking business loans, starting from assets and others.

Well, all that can be done with digital contract crypto. So in the future, we may no longer need to make a contract on paper and sign it on a stamp duty. The problem is yes the contract can be done digitally, and the execution will also occur automatically digitally, without the need for a verification process, trial or complicated procedures.

Well, what's unique is that ethereum is built on the basis of a community ideology that is not controlled by the company. For example, such as institutions, countries, or certain individuals.

You know, how do you do that?

Technically, all the digital information transfer processes on the ethereum network are verified or checked by thousands of miners who are scattered around the world. With the same community spirit, the source of code for the programmers who publish the ethereum application is also free to access. In the open githup developerb forum. Thus the ethereum network can be said to be very safe.

Why, how come?

The problem is that every transaction, data transfer, or digital contract that is undertaken will be verified together with thousands of independent parties. So this concept will cover the possibility of hackers who botched the transaction. Or there are certain people who misuse their authority. Like what might happen in financial services where the process is controlled by one person only. But on the other hand, ethereum also has its weaknesses. One of them is the relatively high cost of the service, and the slow execution speed of the service in line with the increasing number of users using ethereum services. As of this writing, there are at least 2178 applications that are active on ethereum, with 1.32 million daily transaction volumes. This makes ethereum service fees quite expensive.

As an illustration, a money changer application through the Uniswap application based on ethereum can cost around 43 US Dollars, or roughly the equivalent of 600,000 thousand Rupiah.

Well, it is these shortcomings that make Binance Smart Chain or (BSC), have its own charm. One of the advantages of BSC is that the service fee is much cheaper than Ethereum. It can even be up to 97% cheaper.

Wow, it turns out that the difference is so far. For example, the money changer fee, which previously cost 43 Dollars on ethereum, can be done in the BSC-based Pancake Swap application, at a price of 0.42 Dollars, or roughly the equivalent of only 6000 Rupiah.

Well, not only is it cheaper, but transaction execution on the Binance Smart Chain is much faster, because the number of validator notes is much smaller than ethereum.

In ethereum one there are 12 thousand notes, while in BSC there are only 21 notes. This means that only 21 parties verify the transaction, so the execution process is much faster. On Ethereum, there are fifteen transactions per second that are executed. At the BSC, there can be three hundred transactions per second being executed. The processing time per block on the ethereum blockchain takes 15 seconds. While at BSC, it only takes 3 seconds.

Wow, how cool is the image of this Smart Chain.

Yes, BSC really depended on its excellence from these two aspects. In terms of service fees and speed of transactions. That's why more and more programmers are starting to look to Binance Smart Chain, as a blockchain base for the development of the financial service applications they are making. The sad thing is, because the source code for ethereum applications is Open Source, I see. So anyone can take the code on us. That's why not a few applications built on ethereum are actually copied exactly the same in BSC. So the existing services on ethereum can also be used in the BSC, and the transfer process is much faster and the transfer fee is much cheaper.

Wow, then BSC is really perfect, then ethereum loses badly.

Eitsss, wait a minute. Even though the service is cheaper and the process is faster, in fact there is one thing that might be seen as a form of weakness of BSC, when compared to ethereum.

What is that ?

You remember that Ethereum was built with the spirit and ideology of the community. This means that ethereum was built with determination, so that no party like a certain company or individual has great control or power over the ethereum network.

With this spirit, the ethereum community is running. If this network can remain neutral, is not influenced by corporate or political interests, and is also safe. The problem is that the process in the network is being guarded together by thousands of parties. So there is nothing that can cheat, you could say it's really hard to break through with hackers.

So, you could say that the binance smart chain doesn't have that kind of independence. The problem is that technically, this BSC was developed by Binance, as the largest crypto exchange company in the world today. This also makes the number of verifiers in the BSC far less than ethereum.

In Ethereum, there are tens of thousands of independent parties. In BSC, there are only 21 parties that have been developed by Binance itself. Thus the spirit of desetralization or community-based independence can be said to not exist in BSC. Because yes, the ecosystem is under the auspices of Binance as its parent company.

This fact can be seen as a form of weakness in itself from the BSC network, where the security and integrity aspects of the system have not stood the test of time. As of this writing, there are about two thousand active applications running on etherium. Meanwhile, in the BSC there are only about eighty applications running. However, because BSC is cheaper, the volume of transactions every day in the BSC is much more than ethereum. That's why it's not surprising, if the BNB tokens used to carry out the BSC have increased significantly in price over the past few times. Along with the increasing number of users and ethereum projects are re-copied to the BSC, with lower prices and faster transaction speeds.

On the other hand, the ethereum community doesn't stay silent. They continue to develop the technology so that it can be cheaper and faster.

Okay, there are actually a lot of comparisons between Ethereum and Binance Smat cmChain that we can peel, I see. But due to limited time, that's all my discussion this time. Hopefully it is useful and can add to your insight, especially crypti activists in Indonesia.

See you again.

By @midiagam

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