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Faster and cheaper transactions with Binance Smart Chain

Updated: Mar 28

Faster and cheaper transactions with Binance Smart Chain

The Ethereum is limited in the percentage transactions per second. When the workload is high, this inevitably leads to high transaction fees that cripple the blockchain. This fact is currently reviving other platforms such as the Binance Smart Chain.

For a few years ago, Ethereum revolutionized the market with smart contracts. From this point on it was possible to program apps on the blockchain. This progress is the basis for today's Defi apps. It took almost five years for the first defibrillator and widespread attention from the crypto market. In addition to the inadequate infrastructure, a lack of applications can also be cited as a reason for the year standstill.

But the increasing demand also has its downsides. The system can only process a limited amount of transactions and can therefore hardly withstand the current rush. The resulting ever-increasing transaction fees mean that many apps can no longer be used. Small investors in particular are confronted with transaction fees, some of which are unacceptable.

Ethereum 2.0 And 2nd Layer Solutions

The risk of scalability should be a thing of the past with Ethereum 2.0 at the latest. But the changeover is not expected before 2022. Until then, the update, which is planned for July, should provide a remedy and reduce transaction fees with a fee system. The 2nd-layer solutions such, which promise faster and cheaper transactions, are also intended to eliminate the risk of scalability for the time being. But here too, users have to be patient until July at the earliest.

Meanwhile, for many investors and users, developments are not going fast enough. You have been looking for suitable alternatives since the beginning of the year. No wonder if an interaction with a smart contract sometimes costs over 100 US dollars.

The contents of this article are for informational purposes only and are not investment advice.

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