For a long time, Ethereum has been struggling with the problems of high fees, slow transactions, and low scalability. Platforms like Binance Smart Chain (BSC) and Polygon (MATIC) have gained popularity among developers, especially in the decentralized finance (Defi) sector. They try to solve Ethereum-associated issues. Also interesting is the fact that daily transaction counts on the Binance Smart Chain and Polygon networks has constantly outpaced those of Ethereum in the second quarter of 2021.
Now, let us go further in detail of Binance Smart Chain versus Polygon.
Binance Smart Chain (BSC) is a blockchain network which brought programmability and interoperability to Binance Chain. It is running parallel with Binance Chain (BC), which allows users to get the high transaction capacity of BC and the smart contract functionality of BSC. Binance Smart Chain has become a good option for developers and staking investors due to Ethereum’s low scalability and high fees.
Polygon is an answer to the biggest problems that Ethereum faces today. These are low scalability and big fees. Polygon is called “Ethereum’s Internet of Blockchain” because it provides a simple-to-use framework for developers. It is possible to launch a custom Ethereum-compatible blockchain in a single click. The project was initially called the Matic Network. However, due to development, a rebranding was made, and the name was changed to Polygon.
Binance Smart Chain has Proof of Staked Authority (PoSA). It is combination of Proof of Authority (PoA) and Delegated Proof of Stake (DPoS), where 21 validators produce blocks and receive rewards from BNB transaction fees. To become a validator, it is necessary to run a node and stake at least 10,000 BNB.
As mentioned above, BSC is an option for developers due to its advantages over Ethereum in the areas of scalability and transaction fees. Average block time on Binance Smart Chain is three seconds. It is about 4.5 times faster than Ethereum’s. Transaction fees are much less on BSC than on Ethereum. For a simple transfer from one wallet to another, the fee is just $0.03. Binance Coin (BNB) is ranked 4th with a total market cap of $48.96 billion. Binance Smart Chain has about 700 projects on its network.
Polygon has a lot of different modules which allow developers to configure their own custom blockchain. These blockchains have much lower fees and transaction times when using the Matic Proof of Stake (PoS) sidechain, while everything is finalized on the Ethereum mainchain. Polygon Network has a total of 100 validators.
Polygon block time is two seconds, and the average transaction fee is $0.00004. The transaction fee is almost negligible, especially if we take into account the fact that Polygon allows free Matic using a mainnet faucet. Overall, Polygon (MATIC) is ranked 16th on Coinmarketcap with a total market cap of $6.8 billion. Polygon has about 150 projects on its network.
|Polygon (MATIC)||Binance Smart Chain|
|Ranking||16||BNB ranked 4th|
|Total Market Cap||$6.8 B||$48.96 B|
|Daily Transactions High
||9 million||12 million|
|Current adoption||About 150 projects||About 700 projects|
|Proof of stake||100 validators||21 validators|
In 2021, Binance Coin (BNB) had grown over 1,800% to the price of $690 in May. Over the last two months, the price dropped to a value of $316. Polygon (MATIC) had huge growth in 2021, raising from a price of $0.018 in January to a price of $2.65 in May. It is a growth of over 14,000%. After that, the price has dropped to a value of $ 1.15.
Both projects solve the problems that Ethereum has. Currently more popular is the Binance Smart Chain, which has created more than 700 projects, while the Polygon network has about 150 projects. All other features are on the Polygon side. Much higher transactions-per-second, better staking reward, and the fee is practically non-existent. It can be said that Polygon is winning this battle, and the use of the Polygon Network is expected to grow.
Join us on Telegram to receive free trading signals.
For more crypto news, check out the Altcoin Buzz YouTube channel.