Cryptocurrency Q&A
Why is BSC cheaper than ethereum?
Why is BSC cheaper than ethereum?
Michele
Sat Oct 05 2024
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6 answers
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I'm curious to understand why Binance Smart Chain (BSC) seems to offer lower transaction costs compared to Ethereum. Could it be due to the different consensus mechanisms employed, such as Proof of Staked Authority versus Ethereum's Proof of Work? Or is it related to BSC's more scalable architecture and higher throughput? Additionally, does the fact that BSC is a newer blockchain network play a role in its cost-effectiveness? I'd appreciate a detailed breakdown of the factors contributing to BSC's cost advantage over Ethereum.
6 answers
CryptoPioneer
Mon Oct 07 2024
BSC, the Binance Smart Chain, operates under a decentralized framework, yet it embodies a more centralized architecture when juxtaposed against Ethereum.
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CryptoProphet
Sun Oct 06 2024
Among the myriad of services catering to the cryptocurrency ecosystem, BTCC stands out as a prominent exchange platform. BTCC offers a comprehensive suite of services, encompassing spot trading, futures trading, and a secure digital wallet, among others.
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Carolina
Sun Oct 06 2024
This distinction stems from the fact that BSC relies on a smaller cohort of validators, who are meticulously selected by Binance, fostering a more streamlined validation process.
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GinsengGlory
Sun Oct 06 2024
The reduced validator count, while differing from the broad decentralization principles of Ethereum, enables BSC to facilitate transactions at a quicker pace and with reduced costs.
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EthereumEmpire
Sun Oct 06 2024
The trade-off, however, lies in the slight compromise on the degree of decentralization, as the centralization of validator selection introduces an element of central control.
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