{"id":13218,"date":"2021-05-18T12:08:16","date_gmt":"2021-05-18T06:38:16","guid":{"rendered":"https:\/\/zebpay.com\/?p=13218"},"modified":"2021-05-18T12:08:16","modified_gmt":"2021-05-18T06:38:16","slug":"could-bnb-give-eth-a-run-for-its-money","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money","title":{"rendered":"Could BNB give ETH a run for its money?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#BNBs_Launch_and_ICO\" title=\"BNB&#8217;s Launch and ICO: \">BNB&#8217;s Launch and ICO: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#Uses_of_BNB_Token\" title=\"Uses of BNB Token: \">Uses of BNB Token: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#BNB_Migration_to_BEP-2_Token_and_launch_of_Binance_Smart_Chain\" title=\"BNB Migration to BEP-2 Token and launch of Binance Smart Chain:\">BNB Migration to BEP-2 Token and launch of Binance Smart Chain:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#Network_Design_and_Security_Model\" title=\"Network Design and Security Model\">Network Design and Security Model<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#Binance_Smart_Chain\" title=\"Binance Smart Chain:\">Binance Smart Chain:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#BNBs_Performance\" title=\"BNB\u2019s Performance:\">BNB\u2019s Performance:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#Competitors\" title=\"Competitors:\">Competitors:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/in\/blog\/could-bnb-give-eth-a-run-for-its-money\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p><strong>BNB is a layer 1 token, used to trade and pay fees in the Binance ecosystem. It was first introduced as an ERC20 token, and has since evolved to operate on the Binance Smart Chain, with its own standards. But can BNB replace ETH completely?<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bnb-s-launch-and-ico\"><span class=\"ez-toc-section\" id=\"BNBs_Launch_and_ICO\"><\/span>BNB&#8217;s<strong> Launch and ICO<\/strong>: <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/zebpay.com\/in\/buy-bnb\/\" target=\"_blank\" rel=\"noreferrer noopener\">Binance Coin<\/a> launched through an ICO in July 2017 with an initial supply of 200 Million coins. They were distributed as:<\/p>\n\n\n\n<ol><li>Founding Team: 40% (80 Million BNB)<\/li><li>Angel Investors: 10% (20 Million BNB)<\/li><li>Public Sale: 50% (100 Million BNB)<\/li><\/ol>\n\n\n\n<p>The listing price of the coin was 15 cents per token, thereby raising a total of USD $15 Million from public sale. From the total money raised:<\/p>\n\n\n\n<ol><li>33% was allocated to upgrading the Binance platform and the exchange itself.<\/li><li>50% was allocated to Binance branding, marketing, and education of new innovators.<\/li><li>The remaining 17% has been kept as an emergency fund.<\/li><\/ol>\n\n\n\n<p>Despite a total distribution of 100 million coins at launch, there are <a href=\"https:\/\/zebpay.com\/blog\/token-burning\/\" target=\"_blank\" rel=\"noreferrer noopener\">quarterly token burns which reduce the total BNB supply in circulation.<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-uses-of-bnb-token\"><span class=\"ez-toc-section\" id=\"Uses_of_BNB_Token\"><\/span><strong>Uses of BNB Token: <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/zebpay.com\/blog\/zebpay-launches-bnb-wait-what\/\">BNB has sever<\/a><a href=\"https:\/\/zebpay.com\/blog\/zebpay-launches-bnb-wait-what\/\" target=\"_blank\" rel=\"noreferrer noopener\">a<\/a><a href=\"https:\/\/zebpay.com\/blog\/zebpay-launches-bnb-wait-what\/\">l uses cases<\/a>, including:<\/p>\n\n\n\n<ol><li>Pay for trading fees on Binance Exchange.<\/li><li>Trading fee payments in Binance Decentralized Exchange.<\/li><li>Pay for transaction fees on Binance Chain<\/li><li>Transaction fee payments on Binance Smart Chain.<\/li><li>Goods and services for both online and in-store purchases. (Using Binance Card or Binance Pay)<\/li><li>Book hotels, flights and more on Travala.com<\/li><li>Participate in token sales hosted on Binance Launchpad.<\/li><li>Donate on Binance Charity<\/li><\/ol>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bnb-migration-to-bep-2-token-and-launch-of-binance-smart-chain\"><span class=\"ez-toc-section\" id=\"BNB_Migration_to_BEP-2_Token_and_launch_of_Binance_Smart_Chain\"><\/span><strong>BNB Migration to BEP-2 Token and launch of Binance Smart Chain:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In September 2020, Binance launched Binance Smart Chain (BSC), a blockchain network that runs in parallel with Binance Chain. This means there are 3 different forms of BNB now.<\/p>\n\n\n\n<p>The original BNB token was built on the ERC20 protocol. This was later swapped to the BEP-2 token in the ratio of 1:1. This BEP-2 token is the native token of the Binance chain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-network-design-and-security-model\"><span class=\"ez-toc-section\" id=\"Network_Design_and_Security_Model\"><\/span><strong>Network Design and Security Model<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Unlike Ethereum, the Binance Smart Chain does not have smart contracts yet. Insteadm it utilizes the Tendermint byzantine-fault-tolerant (BFT) consensus mechanism. <\/p>\n\n\n\n<p>The system involves several different types of nodes: <\/p>\n\n\n\n<ul><li>Validator nodes, where select community members who vote to validate transactions; <\/li><li>Witness nodes, which witness the consensus process and broadcast transactions to other nodes;<\/li><li>Accelerator nodes, which speed up the transaction validation process.<\/li><\/ul>\n\n\n\n<p>All the validators receive fees once blocks are produced.<\/p>\n\n\n\n<p>Validator nodes vote to process transactions in the network as part of Binance Chain\u2019s Tendermint byzantine-fault-tolerant (BFT) consensus mechanism.<\/p>\n\n\n\n<p>Users can speed up transaction processing by choosing an accelerator node, which works in tandem with validator nodes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-binance-smart-chain\"><span class=\"ez-toc-section\" id=\"Binance_Smart_Chain\"><\/span><strong>Binance Smart Chain<\/strong>:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It is with the advent of BSC, Binance went into direct competition with Ethereum and its high gas prices. With transaction fees that are about 35 times cheaper, BSC has overtaken Ethereum in the first three months of 2021 for daily unique active wallets.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-bnb-s-performance\"><span class=\"ez-toc-section\" id=\"BNBs_Performance\"><\/span><strong>BNB\u2019s Performance<\/strong>:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In Q1, we can see the price rise of BNB of over 710 % surpassing Bitcoin and Ethereum which rose by 103% and 159% respectively.<\/p>\n\n\n\n<p>If we talk about the market dominance, with Bitcoin\u2019s dominance falling, we see BNB dominance to be around 2.8% of the total cryptocurrency market cap.<\/p>\n\n\n\n<p>Binance Smart Chain, is showing rapid growth. If we see the total value locked, in Q1 2021, BSC\u2019s TVL rose from 3% to 27% because of the rising gas price which drives away the retail users.<\/p>\n\n\n\n<p>As both ETH price rises and network congestion builds up, Ethereum\u2019s gas fee crisis will worsen. At the moment, it is not conducive for retail users to do a simple swap on a decentralized exchange. For example, it would cost you above ~$57 if you were to swap 1 ETH to 2,040 DAI on DeBank. However, with the same transaction on BSC, you will be charged ~$10 gas fee, that is almost 6x cheaper than on Ethereum.<\/p>\n\n\n\n<p>This is BSC&#8217;s biggest advantage over Ethereum.<\/p>\n\n\n\n<p>However, BSC is not the only solution out there. There are other competitors as well, and let\u2019s not forget <a href=\"https:\/\/zebpay.com\/blog\/how-ethereums-eip-1559-affects-you\/\" target=\"_blank\" rel=\"noreferrer noopener\">EIP 1559 looking directly into the eye of BSC and just few month away<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-competitors\"><span class=\"ez-toc-section\" id=\"Competitors\"><\/span><strong>Competitors<\/strong>:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many projects chose to build on the Polkadot ecosystem following Gavin Wood&#8217;s support. Solana recently made an ATH, with the strong support of FTX Exchange.<\/p>\n\n\n\n<p>DeFi on BSC has expanded exponentially with close to $20 Billion in Total Value locked. DEX\u2019s continue to be a major part of it. Pancake Swap is the leading DEX on BSC with total market cap of $2.7 Billion.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>BNB has a great chance of giving even better returns and some claims that it might be able to flip ETH to replace it in total market cap have been made. But here are some of the things that we need to consider as well:<\/p>\n\n\n\n<ol><li>We are rooting for a decentralized world, whereas Binance is a centralized coin. Binance owns and controls most of BNB supply.<\/li><li>If the regulators came knocking, there are people who can be completely held accountable for it.<\/li><li>BNB is also a mere copycat of Ethereum. BNB is just a hard fork of Ethereum with a centralized validator and that\u2019s it.<\/li><li>Let\u2019s not forget the <a href=\"https:\/\/zebpay.com\/blog\/how-ethereums-eip-1559-affects-you\/\" target=\"_blank\" rel=\"noreferrer noopener\">EIP 1559<\/a> where we are targeting the reduction of fees and then its ultimate migration to beacon chain which will move it from proof of work to proof of stake and this could be a big downfall for BNB.<\/li><\/ol>\n\n\n\n<hr class=\"wp-block-separator is-style-dots\"\/>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BNB was first introduced as an ERC20 token, and has since evolved to operate on the Binance Smart Chain. But can BNB completely replace ETH?<\/p>\n","protected":false},"author":1,"featured_media":13220,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[96,97],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13218"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=13218"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/13218\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/13220"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=13218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=13218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=13218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}