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What is the Binance Smart Chain (BSC)?
The Binance Smart Chain is a parallel Binance chain to enable smart contracts, which was not originally possible. As a result, developers can now build decentralized applications and digital assets on one blockchain (BC), while having the benefit of fast and cheap trading to exchange in the other (BSC).
We take a closer look at this project with the goal of giving you an objective view in a way that everyone can understand. This article is not intended for promotion.
Binance Smart Chain transaction costs
Binance is exceptionally smart. While the Ethereum network and its users struggle with skyrocketing transaction fees, Binance now offers users the ability to migrate their ERC-20 (ETH) to BEP20 for free!
This lowered the barrier for many users to migrate their assets to the Binance Smart Chain, further accelerating the growth of the network.
Click here for an explanation of the Binance Chain.
Why are Binance Smart Chain (BEP20) tokens suddenly rising so much in value?
This past week we experienced something interesting. Where altcoins usually see a decline relative to BTC in value, during a BTC rally. Both BNB and most BEP20 tokens (tokens built on Binance Smart Chain) saw a significant increase in price.
This has been going on for a few weeks now. And is most likely happening because people are switching from ERC-20 (Ethereum) solutions to Binance Smart Chain (BSC) solutions. Especially for DeFi protocols that require a lot of transactions, BSC has become very popular because of their low gas cost compared to the gas climate crisis that the Ethereum network is currently experiencing, with sky-high transaction costs.