Report: Binance Smart Chain Project Aims to Reduce Transaction Fees
It is thought that the proposal will make BSC more appealing than layer 2s.
Layer 2 scaling solutions have changed the space by making transactions faster and cheaper and by making scaling, privacy, and security better.
In order to make Binance Smart Chain more competitive with other blockchain networks, a proposal has been made to lower the cost of transactions on Binance Smart Chain (BSC).
BSC Proposal
The proposal, which was sent in on March 28, pointed out the need for a more flexible transaction fee structure and a more flexible transaction cost distribution on the BSC network. This is to make sure that blocks are used efficiently and attract new users. It also said that this approach would help keep the BNB economy going and strengthen BSC’s position in the market, especially in the multichain strategy laid out in its roadmap.
According to the proposal, BSC’s high gas prices have slowed down network activity, and the use of the network could go up by 15–20% if the gas prices aren’t lowered.
“BSC transaction costs are currently set at a relatively high fixed rate of 5 gwei, which may not be as appealing to users as the more affordable fees provided by L2 solutions outside of the BSC ecosystem. This will ensure the existing and future BNB Chain L2 solutions remain competitive and keep attractive users in the ecosystem.”
The idea for the BSC validators is to let users choose fees lower than the current 5 gwei rate, with options as low as 3 or 4 gwei, depending on how much money they have. According to the user, this approach would make BSC L1 more appealing than other ecosystems’ L2 solutions and give potential BSC L2 solutions a competitive advantage (BSC L2 should have a target of 0.005$/tx.
In addition to the high number of transactions on BSC, which would be a strong financial incentive for validators to take part, the approach is expected to make the network more sustainable, attract new users, and make the best use of blocks.
Hacking Binance Smart Chain
In a recently released roadmap, BSC said that the main focus in 2023 will be the EVM compatibility and mainnet launch of its new layer 2 infrastructure, zkBNB, and BNB Greenfield, the blockchain-based Web3 infrastructure. The blockchain also plans to increase its throughput from 140 million gas limit and 2,200 TPS to 300 million gas limit and 5,000 TPS.
Since the beginning of this year, the number of daily transactions on BSC has gone up by nearly 60%, from 2.46 million to 3.89 million as of March 29. However, BSC has had a lot of problems in 2022, which is why the number of daily transactions has gone up.
After a $600 million hack in October, the network had to stop working for a while. Other decentralized finance protocols on the network, such as Uranium Finance, Spartan Protocol, Meerkat Finance, etc., were also hacked throughout the year.
