Ethereum vs Binance Smart Chain: who wins in a DeFi crypto battle?


The decentralized financial market has reinvigorated the crypto space from a brutal three-year slumber, with the market moving towards real-world solutions such as non-custodial loans, loans, credit, and away from just acting as a proxy for digital payments.

But where there is technology, there is competition. Ethereum’s lagged blockchain – which has drawn criticism for being slow, non-scalable in its current form, and encounters high fees during demand periods – has opened the door for competitors promising faster implementation, minimal fees and a blockchain. overall better for dApps.

Binance Smart Chain (BSC) is one such blockchain alternative to Ethereum. Maintained and developed by the billion dollar cryptocurrency exchange Binance, the blockchain offers developers a fast environment to deploy dApps and only charges a few cents per transaction, as products like BakerySwap, PancakeSwap and others have shown.

But does it triumph over Ethereum? Cryptonites presenter Alex Fazel caught up with SwissBorg co-founder Anthony Lesiosmier this week to discuss just that.

Binance Smart Chain
Image: Cryptonites

Lesiosmier, a veteran of the crypto markets and former institutional equity trader, oversees operations and security in SwissBorg’s wealth management ecosystem and related services, such as earning returns on stablecoins and other cryptocurrencies from within the app!

Here’s what they discussed.

On the speed and scalability of Binance Smart Chain

Lesiosmier began by analyzing unique smart contract users on Ethereum and BSC, finding that while the former boasts a figure of over 40 million, the latter’s 300,000 unique addresses (considering its launch five years after Ethereum) were a sign of rapid growth and activity.

Fazel intervened, noting:

“We know that the Ethereum blockchain already has $ 12 billion of AUM, but we have 300 (unique) projects built on Ethereum, but already 30 projects built on the Binance Smart Chain.”

Interestingly, BSC was first built on an Ethereum client, Lesiosmier noted, allowing it to easily move assets and services from Ethereum to BSC and thus increasing its appeal among users and developers.

“They don’t have to create a new developer community. If you know how to program on Solidity, a development language, you can do the same on BSC,” Lesiosmier said.

He added:

“And I think it’s very clever because we’ve seen blockchains like Avalanche, Polkadot and there are many examples in this space, but one of the biggest challenges of all these new blockchains is that while the” engine “of the blockchain itself is better than Ethereum, it doesn’t. they have the same community. “

Despite the benefits, BSC has faced criticism for being a “centralized” blockchain, compromising that aspect to offer better speed and scalability for users. But Lesiosmier noted that Ethereum’s security made Binance’s move worthwhile, especially since the former saw zero smart contract failures when managing billions of dollars in assets.

Agricultural productivity (and risk management)

The duo then plunged into the yield farming subsector, which had its five-minute stardom in July-August but has since vanished. For the uninitiated, this sees users blocking capital on Ethereum-based projects which is then loaned to other users on interest, with the stakers, in turn, receiving a portion of the interest rates.

To illustrate, Lesiosmier created a farm on the BSC-based PancakeSwap project and showed the earnings flowing to his balance on the screen in real time. The cost? A few cents. (Compared to a few dollars or even hundreds of dollars on Ethereum based on network demand.)

SwissBorg’s CSO even explained how multiple farms, such as Cream Finance and others, can actually be used to deposit BNB, earn interest on it, and simultaneously dig out of Cream to “riskier” pools. This serves as much needed risk management and allows users to diversify their funds.

Eventually, (warning: spoilers coming soon), Lesiosmier suggested that while Ethereum developers are experimenting with newer products and leading in innovative tools for users, they should try to develop stuff on BSC, for the various reasons listed above instead of avoid the protocol entirely.

(The above is part of an in-depth 54-minute interview with Cryptonites available for full streaming below. It has been edited for clarity and brevity.)

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