A Brief Analysis of Solana and BSC for dApp Development

In this article, we explore two prominent blockchains - BSC and Solana. We analyze their unique features such as speed, scalability, transaction fees, and more for blockchain application development.

Understanding Decentralized Applications (dApps)

Imagine your car transporting passengers while you're at work or your computer utilizing its spare capacity to serve people across the globe. Imagine being paid for browsing the web by taking ownership of your information and attention. That world is not far away.

With the launch of blockchain, many people are wondering why to pay a middleman like UBER to provide a ride-sharing service when you could use an app that attaches you straight to the riders and doesn't take a cut. Well, that's the promise being offered by decentralized applications (dApps).

A decentralized app is an open-source application built on a distributed platform with trust distributed among its users. It means that they are designed to avoid single points of failure and are also more transparent and accountable than existing applications.

Further, simply because a traditional app runs on a single network of computers, and a dApp runs on the top of a decentralized, peer-to-peer network of which no single entity has complete control, it will perform its function even if a single node is online in the network.

Binance Smart Chain (BSC) Vs Solana

Before jumping into the comparison, let us take a brief about the two:

Binance Smart Chain (BSC)

Binance Smart Chain (BSC) is best expressed as a blockchain that runs side by side with the Binance Chain. This two-fold-chain architecture permits its users to build their decentralized apps and digital assets on one blockchain and take advantage of the fast trading to exchange on the other.

BSC is deliberated to provide a high-performance framework for decentralized trading, dApp development, blockchain consistency, smart contract support, and other DeFi (decentralized finance) products. The Binance Smart Chain is unique as it provides the ability to create new smart contracts and sophisticated decentralized applications.

As a second-generation blockchain, BSC uses the proof-of-staked-authority (PoSA) consensus algorithm. PoSA merges delegated proof-of-stake with proof-of-authority (PoA). This makes BSC much more energy-efficient than first-generation blockchains that depend on proof-of-work (PoW), such as Ethereum or Bitcoin.

Solana

Solana is a high-performance scalable blockchain that can hold up crypto applications. Solana can currently lift 3k transactions per second. SOL is the native cryptocurrency of the Solana network with a name influenced by the coastal beach in California. Solana is a blockchain that has breezed into the race to be the fastest, most secure, and scalable solution in crypto land.

Solana's crew comprises former leading technologists from Qualcomm, Intel, Netscape, and Google. Its CEO, Anatoly Yakovenko has software engineering knowledge from Qualcomm and Dropbox. The Solana network was able to raise financial backing from investors such as multicoin capital and foundation capital and distributed globally to the tune of 25 million dollars.

Also, Discover | Why Develop DeFi dApps and Protocols with Binance Smart Chain

Now that you have read about the two blockchains, let's look into the comparative points between the two.

Flexibility and Block Time

As both projects feature blockchains with high scalability, it becomes necessary to inspect their block time and output. Solana is taking its approach to achieve flexibility. With the capacity to strike highs of 66,000 TPS and a conceptual limit of 700,000 TPS in the future. Solana looks to achieve equality with centralized systems. Obtained from the daily transfer count in the network, Binance Smart Chain handled nearly 62.4 TPS on 17 June with a network application rate of 38.91%. As a result, BSC can process around 160 TPS with full network usage.

Validators, Reliability, and Centralization

Binance Smart Chain uses the PoSA algorithm, which needs only 21 validators (with the highest voting power) to reach a consensus to uphold transactions and add new blocks to the chain.

In opposition to BSC, Solana has no such restrictions, with its network currently featuring 658 validators. As a result, it's secure to conclude that Solana features a higher level of decentralization than Binance Smart Chain.

Transaction Fee

For the transaction fees, it's secure to say that both blockchains are affordable for users.

Based on June 17's data, a transaction on BSC hallmarks an average fee of 7.6 giga-Wei, with the mean gas used per transaction being 124,000, the average transfer cost is 0.0009348 BNB, which is equivalent to $0.325.

Focusing on multiple transactions on Solana, the fee for a transfer equals 0.000005 SOL, which is worth 0.000186$ according to the current token price.

Activity and Usage

In accordance with BscScan, BSC handled almost 5.40 million transactions this 17 June while promoting a daily growth of approx. 380,000 unique addresses. Unique addresses do not certainly imply an equal increase in the number of users.

Woefully, there is no such info about the Solana. But, centered on the approximately 700 TPS the network currently holds, Solana processed around 60 million transactions on June 17.

Also, Visit | Solana vs Ethereum Blockchain | Which is Better for dApps

Conclusion

Ultimately, the choice between Binance Smart Chain and Solana for dApp development depends on specific project requirements. Businesses need to consider factors such as speed, scalability, decentralization, and transaction costs. Both platforms offer distinctive features catering to diverse needs in the decentralized application ecosystem.

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