Due to the high fees, Ethereum has become a blockchain for the rich guys, according to Binance’s CEO.
The time has come for Binance Smart Chain to shine, and the CEO of Binance CZ knows this and is ready to take advantage of that moment.
The growing use of DeFi protocols, dApps and applications built on top of Ethereum has overloaded the network to the point where their rates are almost unsustainable. Several blockchains are competing to emerge as Ethereum’s new killer, and CZ is hoping that the BSC is the best option.
Binance vs Ethereum
In a recent tweet, CZ attacked Ethereum, targeting its Achilles heel: the fees. For the CEO of Binance, only the rich can pay the fees to trade Ethereum:
ETH is a network for the rich guys now, but soon those guys will be poor. 😂
– CZ 🔶 Binance (@cz_binance) February 27, 2021
“ETH is a network for the rich now, but soon these guys are going to be poor.”
And he is right. Over the course of 2021, the average transaction cost on Ethereum dropped as fast as the price of ETH (its native token), from less than $ 5 on average last year to about $ 15 today. Just 4 days ago, network fees reached an ATH of almost $ 40 on average, according to data from ycharts.
However, this is the price per transaction. Traders operating on DeFi or agricultural production platforms have to deal with the possibility of paying $ 100 + for each trade they make on a daily basis.
CZ did not stop there. A later tweet said he was no longer using Ethereum. Binance is developing two projects to compete directly with the two largest block chains in the ecosystem.
The Binance Network was designed to allow extremely fast payments with minimal fees. It would be a direct competitor to Bitcoin because of its narrow focus on sending and receiving funds.
Binance Smart Chain, on the other hand, allows the execution of smart contracts more efficiently and economically than Ethereum.
A competition to become the best Ethereum
The emergence of projects like Polkadot, Binance Smart Chain and Cardano is a sign of the growing interest in finding a blockchain capable of replacing Ethereum. Yesterday, Cardano took third place among the cryptocurrencies with the highest market capitalization, dethroning BNB from its recently assumed position.
Like Binance Smart Chain, Cardano seeks to execute smart contracts quickly, economically and safely. Still, as a difference, Cardano has a slightly more complex design and a much longer roadmap.
However, Ethereum developers are working on the second version of the blockchain. Ethereum 2.0 will have several layer 2 implementations. According to some enthusiasts, the new blockchain will process thousands of transactions per second – up to hundreds of thousands, once fully deployed, according to Vitalik Buterin.
Perhaps, when Ethereum 2.0 is complete, it will once again become a blockchain for the poor, and billionaire CZ crypto will like it again.