Many newcomers to the crypto space are currently concerned with the following question: Is the Binance Smart Chain better than Ethereum?
We looked at the numbers and Ethereum is still the number one smart contract blockchain. Especially when it comes to decentralized finance (DeFi), Ethereum is still the leader – but why is that?
Below we take a look at three important factors in which the Ethereum Blockchain becomes the Binance Smart Chain.
1. Ethereum is more decentralized than the BSC
Critics of the Binance Smart Chain complain, among other things, that projects at the BSC cannot really be described as decentralized finance. This is because the BSC is much more centralized than the Ethereum blockchain.
Ethereum has almost 30 times as many unique blockchain addresses as the Binance Smart Chain. Data from Etherscan and BSCscan show that Crypto Bank currently has almost 140 million accounts, while the BSC has just over 5.4 million individual accounts.
In addition, the data shows that the 10 largest addresses on the Binance smart chain own more than 80 percent of the total BNB tokens. In comparison, the 10 largest Ethereum addresses only make up just under 20 percent of the total ETH holdings.
In addition, the Ethereum blockchain has a little more than 10,000 nodes that are involved in the proof-of-work network. In comparison, the BSC has only 21 validators, most of which are owned by Binance.
This means that the ETH blockchain is currently significantly more resistant to censorship than the BSC. This also makes Ethereum a lot safer, as it is much more expensive to manipulate the Ether Blockchain. At the BSC, validators could be forced to make certain decisions or even corrupted and therefore Ethereum is still miles ahead of the Binance Smart Chain in terms of decentralization.
2. ETH DeFi has more trading volume and liquidity
According to data from crypto analytics platform DappRadar , Ethereum processed over $ 112 billion in transactions last month. During the same period, the BSC only processed transactions valued at US $ 15 billion.
What: The Defiant
In addition, the Total Value Locked (TVL) in DeFi, i.e. the capital managed by DeFi protocols, is still almost four times as high on ETH as it is on BSC. The TVL in Ethereum DeFi is currently just under 40 billion US dollars and in BSC DeFi projects 10 billion US dollars .
3. Does the BSC really have more daily transactions than Ethereum?
At first glance, data from Etherscan and BSCscan show that the daily transaction number of the BSC exceeds that of Ethereum by a ratio of 2: 1. On February 19, the BSC even recorded over three million transactions in a single day. In comparison, Ethereum’s daily transaction count has never surpassed 1.5 million.
Binance CEO Changpeng Zhao celebrated this historic event on Twitter with the following message:
There are now three times as many daily transactions on the BSC as on ETH. If developers don’t use the BSC, they’re missing out on 75 percent of their potential market.