Recently, platforms like Polygon (MATIC) and Binance Smart Chain have gained attention in the dAPPs sector. Developers are comparing Polygon vs. Binance Smart Chain as they have equally solved issues that arose with popular blockchains like Ethereum. Interestingly, the daily transaction rate of BSC and Polygon surpassed Ethereum in the second quarter of 2021.
The best feature of both ecosystems is that they support the Ethereum Virtual Machine (EVM), which has undoubtedly contributed to their rapid growth. EVM support enables the interoperability between BSC, Polygon Network, and the Ethereum Network. As a result, developers can migrate their decentralized applications from the Ethereum network to Polygon or BSC, and vice versa, quickly and effectively.
In this blog post, we will compare Polygon and BSC to decide which one is best for your blockchain project.
- What is Polygon?
- What is Binance Smart Chain?
- Comparing Polygon vs. Binance Smart Chain
- Which one should you choose?
What is Polygon?
The Polygon Network, a blockchain scalability platform, intends to build a network for Ethereum-compatible blockchains (infrastructure). Polygon is Ethereum’s leading protocol and framework for creating and connecting Ethereum-compatible blockchain networks. It aggregates scalable Ethereum solutions while supporting a multi-chain Ethereum ecosystem.
It is also a Layer-2 solution, a developer-first hybrid POS+Plasma side-chain that provides scaling and security for your project. It is called “Ethereum’s Internet of Blockchain” in the DeFi world. Polygon offers a variety of features, including Polygon SDK, which makes it easy to launch your project on Polygon. Interconnected blockchain networks are built inside the Polygon network. Formerly called Matic, the network was created to address some fundamental limitations faced by the Ethereum network.
- MATIC is Polygon’s native token and has the following uses:
- Pay for transaction fees in the network.
- Represents the unit of payment and settlement in the Polygon ecosystem.
- Power the Polygon proof-of-stake sidechain.
What is Binance Smart Chain?
Binance Smart Chain (BSC) was founded in late 2020 and skyrocketed in popularity in the first quarter of 2021 due to the Ethereum blockchain’s high gas fees and slow transaction confirmations. Binance Smart Chain works the same way as the Ethereum ecosystem because it is EVM-compatible, which means that Ethereum smart contracts are fully compatible, with additional tweaks to make the blockchain faster. So it’s no surprise that BSC has surpassed Ethereum in daily transactions.
Binance Smart Chain is optimized for fast decentralized trading, smart contract functionality, and compatibility. It was introduced by the crypto exchange Binance to enable dApp development with larger capacity and lower latency than Ethereum. BSC is an independent blockchain, and the native token of the blockchain is BNB. The platform uses Binance Coin (BNB) as its native currency. Binance Smart Chain also offers a variety of features, including cross-chain compatibility and more.
Comparing Polygon vs. Binance Smart Chain
Below are some of the key differences to ignite the discussion on Polygon vs. Binance Smart Chain:
Innovation: BSC is a modified form of Ethereum. It employs the Proof of Stake (PoSA) consensus algorithm, a cross between PoA (Proof of Authority) and DPoS (Delegated Proof of Stake). On the other hand, polygon (Matic Network) is an Ethereum layer-2 sidechain that uses the Plasma framework and POS chain to secure assets. Polygon, as previously stated, is an interoperable and extensible framework for creating Ethereum-compatible blockchains. They plan to release ZkRollups, Optimistic Rollups, Standalone Sidechains, and Enterprise Sidechains as additional extended solutions in the future. Polygon is also competing with Ethereum’s sharding for scalability.
Fees: BSC’s gas fee is much lower than ETH’s, but it is still only a few cents (10-20 cents). Polygon Network’s gas costs are almost non-existent. You can make up to 100 basic trades for 1 Matic.
Speed: BSC is faster than ETH, but the transactions take 3-5 seconds, sometimes even longer, to complete. Transactions on the Polygon POS chain are completed in under a second. They can take up to 7 days on the Plasma Chain.
Transactions: BSC will conduct an average of 3.3 million daily transactions. On the other hand, for Polygon, it is 6.5 million in the same period. Either way, both BSC and Polygon have been deemed faster than Ethereum. Ethereum or Solana for blockchain projects is also considered by people.
Decentralization: When it comes to Polygon vs. Binance Smart Chain, BSC is highly centralized. It requires at least 21 nodes to run the chain, but most of them are owned directly or indirectly by Binance. As a result, the DeFi platform built on BSC is CeDeFi. Matic does not compromise on decentralization while providing faster and lower-cost transactions.
Network Effects: Binance is one of the biggest names in the crypto market, so they have a strong network of users and investors. On the other hand, Polygon is powered by a strong Ethereum DEV community.
Which one should you choose?
The points above indicate that Polygon (Matic) is the clear winner. In theory, it outperforms BSC while maintaining network security and decentralization. Regarding the market, BSC dominates and processes more transactions than the Ethereum main network. Despite being centralized, it houses several user-friendly and easily accessible DeFi applications. They have comparable TVLs (Total Value Locked) and market capitalizations. Furthermore, as the world’s largest cryptocurrency exchange, Binance has all the resources, developers, and funding needed to create and market amazing products.
Even though BSC looks promising in the current scenario, the upward growth of the Polygon chain is not negligible. Newer developers might find Polygon compatible as it has higher transaction speed, better DeFi staking, and a non-existent transaction fee.
The Polygon vs. Binance Smart Chain debate is ongoing in the crypto world because congestion and scalability issues on Ethereum have prompted the adoption of other blockchains. Apart from BSC and Polygon, other blockchains include Polkadot, ADA, and Cosmos. Most blockchain developers are looking for scalability, speed, low fee, and multichain capability features. From the perspective of the above-mentioned features, both Polygon and BSC are on par. Now that we have compared two of the most sought blockchain platforms in the current crypto world, choosing one that suits your project the best is left to you!
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