Today we will discuss the 2 big network for blockchain crypto market, Ethereum mainnet and Binance Smart Chain network.
First, let’s look at what is the smart contract technology.
What is a Smart Contract?
A smart contract as stated by Wikipedia as: In computing, a smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract . Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible . Smart contracts were first proposed by Nick Szabo , who coined the term .
The most prominent example of this technology is Ethereum blockchain network which introduce decentralized applications (dapps) development platform for any kind of business to create digital agreements with their customers where users have full control over their data and privacy . However, despite the fact that Ethereum has a decentralized network and allows no censorship, it is under control of a small group of programmers called as “governing body” who have the final say in any kind of upgrade to their core code.
Why Smart Chain is better
The Binance Smart Chain Network was created by Binance developers with some improvements on existing smart contract technology which they call Smart Chain . The second generation blockchain technology built on Ethereum ERC20 token platform. Now let’s look at some points why Smart Chain is better than Ethereum Main net:
1- Better capacity for faster transactions –
With higher block time than Bitcoin (120 seconds vs 10 minutes) , Smart Chain offers higher transaction capacity than Bitcoin or even ethereum mainnet.
2- Smart Chain supports fiat currency –
Smart Chain supports both digital assets and fiat currency transactions at the same time allowing users to send or receive FIAT money instantly . It is very important for any financial institution to enter the crypto market.
3- Smart chain is able to support smart contracts
The Binance Smart chain network can support not only decentralized applications (dapps) development but also provide scalability unlike Ethereum Main Net which makes it second to none.
4- Stable coin integrated into Smart Chain Network
Stable coins are widely used in trading for many reasons, one of them is the low risk of volatility; Binance plans to integrate its own stable coin called as “Binance Coin” (BNB) soon, this will make Chang Chain much more popular in the crypto market.
5- Fee is cheaper
Binance coin (BNB) is cheaper to use than other coins in trading, this fee can be reduced by up to 50% during nighttime.
6- Smart chain has no governing body
Unlike Ethereum main net which is controlled by a small group of programmers called “governing body” , the Binance smart chain network are fully decentralized and are donated to mining community.
7- Merged mining with Bitcoin
The merged mining with BTC will provide more security, stability and scalability for the future .
8- Easily available API interface
Developers find it easy to build applications on smart chains due its API Interface. This makes it very attractive for developers who want to enter the crypto market
Ethereum Main net is dead?
Ethereum is a great platform for dapp development but has some drawbacks. First of all it is no longer decentralized as the new protocols implemented by ethereum team – EIP-145 and EIP-1014 , have caused a split between new developers who support original Ethereum system and old devs who want to keep the old protocols . The conflict between both groups of developers has called “forking” made it pretty clear that Ethereum main net is under control of small group of programmers (governing body) who don’t allow any censorship . Although there are many other factors like scalability, fees, governance etc which make us think about if this network can survive or not
Etherureum 2.0 ?
Even if the old group of programmers decide to change their protocols , it will be too late as most developers have moved from Ethereum to Etherureum smart chain network . There is still a chance that ethereum foundation could solve their problems and go back to original protocols but they should do it soon in order not to lose it’s position in this competition. Developers are moving to newer platforms with much better technology, for example NEO or WAVES . The only thing which make people believe in ethereum is the high price which can drop any moment. But we think that even in this case, ethereum will never ever regain its authority in decentralized applications development market because there are already another players like EOS and QTUM who have shown much better results in this field.
Etherum, the “ICO” platform ?
Yes, Etherum is still a great platform for ICOs , but it seems that people are scared about government regulations and law suits which might affect their profits after these new rules are implemented. We all know that China has already banned ICOs and other countries may follow soon . The fact that etherureum smart chain network is allowed to host dapps with fiat currency transactions makes it more interesting option than Ethereum, since most investors don’t want to risk their money on an ICO hosted on a decentralized platform such as ethereum . It’s also worth noting that most stable coins went live using Smart Chain technology such as Tether (USDT) and True USD (TUSD) . This is another indicator that decentralized exchange which use fiat currency will rise soon and we think this is also one of the reasons why Binance Changer wants to launch its own stable coin called as “Binance Coin” (BNB).
Ethereum network has been a pioneer in blockchain technology , but time changes everything, new blockchains with novel concepts have already proven their ability to do things better. The final word for now belongs to community, until any better smart chain comes up, Ethereum main net may still be considered as a reliable player , yet it’s not a matter of luck whether or not this network survive or not – it depends on developers.
in a nutshell, Smart Chain Network is far better in many aspects than Ethereum Main net making it technologically second to none. It will have a huge impact on the crypto market in near future. However, we will have to wait till Binance finalises its development and tests all features before it’s officially launched for live trading . Stay tuned!