If Bitcoin reigns supreme among cryptocurrencies, Ethereum is undoubtedly the queen of open source Blockchains, where it is possible for anyone to develop an application.
The major competitor of Ethereum is BNB Smart Chain (BSC). Basically the two blockchains, above all at a superficial glance, seem very similar, also because they share the same crypto wallet address, however they also have many structural differences.
At the base of the differences there is the consensus protocol used by the two different networks, where Ethereum uses a protocol called Proof-of-Work (PoW), although it is planning the migration to Proof-of-Stake (PoS), in any case, even after the passage, the algorithm will remain other than BSC. Binance Smart Chain uses a mixed protocol called PoSA (Proof-of-Stake-Authority). The result is that transactions on Binance are infinitely more cheaper and faster than those of Ethereum.
But let's compare the two Blockchains and see the pros and cons of BNB Smart Chain and Ethereum.
How the Ethereum and BSC (BNB Smart Chain) Blockchains are born
One thing that BSC and Ethereum have in common is the characteristic of being what is called Blockchain open source, that is that host external applications and allow free development on them. Ethereum was launched in 2015 and until the arrival of BSC was the only platform available with these features.
In order to compete in this context with Ethereum, but at the same time also to offer an alternative that would solve the problems of this Blockchain, BSC is born. The construction of BSC has a slow history, because as we know it takes shape in 2019, then in February 2022 the network is renamed BNB Chain and joined to the previous platform.
How the Ethereum (PoW) Blockchain works
At the moment the main difference between the two platforms concerns the consensus protocol which is the system that a decentralized network uses to securely validate transactions.
The validation of transactions in this system takes place thanks to incredibly powerful specific hardware whose purpose is the resolution of complex mathematical calculations, after which the transaction is validated, recorded on a block and inserted in the Blockchain. The problem with this system is its energy needs.
And in fact every time you execute any transaction on Ethereum there are special network commissions to be paid which are the gas fees and are often high, on an amount of 50 euros at the moment.
How BNB Smart Chain (BSC) works
BNB Smart Chain (BSC) has a specific validation protocol called PoSA, an evolution that however starts from Proof-of-Stake (PoS). Here we leave the mining mechanism for the choice of validator nodes and adopt staking instead. No particularly powerful hardware is required, but to be a validator it is necessary to purchase the governance token of the platform, that is BNB in the case of the BSC Blockchain and use the staking of cryptocurrencies.
To become a BSC validator node you need 10,000 BNB, which calculated on the current value of the currency that is of 297 euros per unit they are about 3 million euros and in fact BSC has few validators overall. When will it be? the transition to the Ethereum PoS will require 32 ETH to become validators of the network, which again according to today's value correspond to about 60,000 euros.
In general, however, staking is accessed with much more low thanks to staking pools, where a group of users share the rewards.
Standard Token: ERC (Ethereum Request for Comments) vs. BEP (Binance Evolution Proposal)
In general it should be said that at the moment BSC is more quick and then cheap of Ethereum without too many doubts, but the situation will have to; be reconsidered and re-evaluated when Ethereum completes the transition to Proof-of-Stake (PoS), because the new protocol will reduce the energy requirement of the network by 99% and therefore commissions on operations will also drop.
Cryptocurrencies compared: ETH vs. BNB
Every Blockchain platform has what is called a utility token, that is a native cryptocurrency which among other things is always the one with which you pay the commissions on transactions applied by the network.
The native cryptocurrency of the Ethereum Blockchain is called Ether (ETH) and the second cryptocurrency in order of market capitalization, where preceded only by Bitcoins. After all this is was the first open source Blockchain platform ever created.