Binance Smart Chain is getting expensive.

0 12

After reading this sentence, I realized that. We don't know how blockchains work. Let me tell you how cheap and fast transactions can be in a blockchain.

Let's start with the bus example again, so everyone can understand.

Transactions on the blockchain are passengers. Blocks are buses. The logic works like this. Taking passengers on the bus and passing them. If buses are small and depart slowly, passengers are waiting. Passengers also pay a lot of money to get on the first bus to avoid waiting.

There is only one truth for the driver of the bus, to make more money. The capacity of the bus is 10 people, the 11th person is coming and says I will get on the bus. The driver looks at the ticket money and says that if you give the cheapest ride on this bus $ 10, which is $ 11, I'll throw that guy and get you.

So there is a rivalry between men who do not want to take the first bus and wait. Bitcoin and Ethereum are expensive because buses are packed full of passengers and nobody wants to wait. He gets on the first bus to print the money. The cheap bus is waiting, which can not print the money.

If we enlarge the buses and remove them from the station much faster, nobody will wait in line. Since there is no line, the man who pays a small fee gets on the bus, making transactions faster and cheaper.

Ok, let's enlarge and serialize buses in Bitcoin and Ethereum.

Unfortunately no.

When the buses get bigger, a lot of data goes into the chain. For example, buses in Bitcoin are 1MB. If we make it 1 GB, blocks of 10 GB will join the chain every 10 minutes, and all nodes in the world will have to download 10 GB of data every 10 minutes.

It is not possible to download this much data synchronously. This will lead to a reduction in knots. Thus, decentralization will be broken. If we remove the buses quickly, there will be very fast data entry again, and different blocks will be found at the same time. It will turn into Arabian hair.

So how did Binance Smart Chain achieve this by copying Ethereum? If Ethereum is the same, why transactions are cheap.

In Ethereum, each block has a capacity of 12.5M in 20 seconds. Binance Smart Chain has increased this to 30M capacity, it finds blocks in 3 seconds.

While Ethereum grows by 50 GB per year, BSC is growing by 420 GB per year. (Ethereum is all 230 GB.)

BSC says that decentralization does not matter, our nodes are able to download less (21) more data. We have huge machines, we have fast internet.

So it's fast and cheap.

So why is it getting expensive?

Before, buses were very fast and large, meeting the demands of the passengers. He started to slow down. Passengers increased a lot. There were 3-4 thousand transactions a day, now there are 3-4 million transactions. If the increase continues, it will be more expensive.

The more passengers, the more expensive the network will be. It is valid for every blockchain. Since Ethereum 20 TPS is Binance 240 TPS, Binance can handle more load and it is not very clear. Even if a network has 10,000 TPS and billions of transactions per day, it will still be expensive. Ethereum can do what Binance does and grow blocks and remove them faster. However, this ends decentralization. Ethereum says that we cannot compromise on decentralization. We have to scale with decentralization.

In short, there is nothing special about BSC.

1
$ 0.00

Comments