Decentralized applications (dApps) operate on peer-to-peer blockchain networks. They utilize blockchain's distributed ledger technology for transactions and data sharing via smart contracts. Amidst numerous platforms facilitating smart contract development, our focus lies on comparing two prominent ones: Binance Smart Chain and Solana blockchain development. This article gives a detailed comparative analysis between these platforms, aiding in understanding their unique features and capabilities for smart contract development.
Exploring Decentralized Applications
Firstly, we need to understand what is a decentralized application (dApp).
A dApp is an application that is free from the control of a single authority. It is a type of distributed open-source software that runs on a peer-to-peer (P2P) blockchain network rather than on a single computer. DApps are deployed on a decentralized network that's supported by a blockchain-distributed ledger. The use of blockchain enables a dApp to reuse data through the distributed network and execute transactions.
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Understanding Binance Smart Chain (BSC) and Solana
Now, let's compare two smart contract blockchain platforms for dApp development:
- Binance Smart Chain
- Solana
Binance Smart Chain
Binance Smart Chain (BSC) was launched as the project of the crypto exchange Binance. It is a scalable blockchain network that natively supports smart contracts. One main advantage of BSC is that the blockchain network is compatible with the Ethereum Virtual Machine (EVM), which allows developers to deploy Ethereum smart contracts and dApps with minimum configuration on BSC.
Also, Discover | Binance Smart Chain (BSC) for Smart Contracts Development
Solana
Solana is a proof-of-stake (PoS) blockchain and uses a new technology called proof-of-history (PoH). Solana has smart contract capabilities including DeFi (decentralized finance) dApps and NFTs (non-fungible tokens). The smash in the DeFi and NFT spaces has pushed costs on Ethereum extremely high causing crypto users to seek other options like Solana blockchain development.
Solana now boasts a theoretical peak capacity of 1,000 trades per second. The network has become one of the most largely used blockchains now due to its speed and low transaction costs.
Suggested Read | Why Develop DApps on Solana
Binance Smart Chain Vs Solana
Market Cap and Token Stats
Binance Smart Chain leads in this field, especially if we compare its BNB exchange token. According to CoinMarketCap, BNB holds the 4th rank among cryptocurrencies with a $53.4 billion market cap and a nearly $1.4 billion 24-hour trading volume. On the other hand, Solana's native SOL token features a market cap of $10.2 billion and a 24-hour trading volume of $372 million.
Transaction Fees
In terms of transaction fees, it's safe to say that both blockchains are affordable for users. Transactions on Binance Smart Chain feature an average figure of 7.6 gwei. The average transfer cost is 0.0009348 BNB, which equals $0.325. Multiple transactions on Solana (due to the platform's beta release, it lacks sophisticated network stats and maps), the cost for a transfer equals 0.000005 SOL, which is worth $0.000186 based on the current price of the token.
Decentralized Finance (DeFi)
As similar results operate via smart contracts, it's important to check how Solana and BSC perform in this area. According to Defi Llama, decentralized finance dApps on Binance Smart Chain feature a TVL (total value locked) of $14.62 billion (12.65 %market share), with the PancakeSwap AMM being the leader among the ecosystem's solutions with a $4.16 billion TVL. Solana has a $642.47 million TVL (0.556 market share), with the yield farming platform and AMM protocol Raydium being the most popular DeFi dApp within the ecosystem ($317.76 million TVL).
Validators
Binance Smart Chain requires only 21 validators (with the topmost voting power) to reach an agreement to verify transactions and add new blocks to the chain. Solana has 658 validators. As a result, it's safe to conclude that Solana blockchain development has better features than the Binance Smart Chain in terms of decentralization.
Check It Out | Exploring the Potential of Solana Smart Contract Development
Summing Up
Based on the comparison drawn over, one can figure out that both blockchain networks withhold the capacity to displace each other, in the case of one metric or another. Businesses should go for BSC dApp development or Solana dApp development based on their project preferences.
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November 21, 2024 at 11:35 am
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