Comparing Binance Smart Chain and Ethereum

Are They Not the Same?

Mars Panda is powered by Binance Smart Chain (BSC), which is a hard fork of the Go Ethereum (Geth) protocol. This makes BSC very similar to the Ethereum blockchain. However, BSC has a different consensus mechanism, and this makes transactions cheaper and faster.

Similarities

Compatibility

dApps and tokens built on BSC are compatible with the Ethereum Virtual Machine (EVM). You probably have noticed by now that your public wallet addresses are the same on both blockchains. There are also cross-chain projects that operate on both networks.

DeFi Projects

In the realm of decentralised finance (DeFi), many dApps cross-over between BSC and Ethereum due to the two blockchains’ compatibility. The easy portability of applications from Ethereum to BSC allows new BSC projects to reuse open-source code from Ethereum. The most popular BSC dApp, PancakeSwap, was created as a hard fork of Uniswap.

Differences

Consensus Mechanism

Ethereum, similar to Bitcoin, uses Proof of Work (PoW) consensus mechanism. The contention with PoW is that it is energy-intensive, and due to its highly decentralised nature, has slow transaction speed. BSC on the other hand uses Proof of Staked Authority (PoSA) that combines aspects of Proof of Authority (PoA) and Delegated Proof of Stake (DPoS). PoSA is more energy-efficient and speedy, at the expense of decentralisation. However, this difference between Ethereum and BSC will disappear with the introduction of Ethereum 2.0, which will use a Proof of Stake (PoS) consensus mechanism instead.

Transaction Fees

BSC and Ethereum both use a gas model for transaction fees that measures the complexity of a transaction. BSC users can set a gas price according to network demand, and miners will prioritise transactions with higher gas prices. Ethereum’s London hard fork creates a new pricing mechanism with a base fee per block. The base fee changes depending on the demand for transactions, removing the need for users to decide on the gas price themselves.

Transaction Time

In Ethereum, the transaction time can range from 30 seconds to 16 minutes. These numbers take into account successful transactions but not the extra confirmation requirements.

dApp Community Size

Ethereum is the first smart contract blockchain and has been around much longer than BSC. It naturally has a larger dApp community. In fact, there are more than 2800 DApps on the Ethereum blockchain compared to roughly 810 on BSC.

Mars Panda and BSC

The similarity between BSC and Ethereum has proved to be a boon and a bane. Mars Panda benefits from the low fees and fast transactions, but it can sometimes cause confusion in our community, which is more familiar with Ethereum, especially when choosing the right blockchain to transact in their wallets.

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