Success of PancakeSwap has big influence
Binance announced on Wednesday that its Binance Smart Chain processed a record 14.7 million transactions in one day. According to data from BSCscan most of the transactions came from exchanges. The Binance exchange sent the most transactions, while the decentralized exchange PancakeSwap received the most.
Binance Smart Chain has become one of the most prominent players in the blockchain ecosystem, thriving on the fact that users can transfer small value without paying high gas fees. The native BNB token for BSC has increased roughly 1900% in value this year, emphasizing the incredible demand for the Binance Smart Chain ecosystem. In comparison, Ethereum increased its value 800%.
Within this ecosystem, the decentralized exchange Binance Smart Chain served more than 5.2 million unique active wallets in the past 30 days. Other financial services like 1inch, ApeSwap and, AutoShark Finance all serve 143.000 up to 213.000 wallets per month. On top of that BSC has seen increased demand for GameFi dapps, giving users a gamified experience while yield farming. Dapps like CryptoMines, Mobox, Bomb Crypto and CryptoBlades have become popular destinations in recent months.
Blockchains looking to meet future demand
Binance Smart Chain being able to process 14.7 million transactions in one day is no small feat when compared to older blockchains. On a typical day Ethereum sees more than 1 million transactions, while Bitcoin only supports a quarter of that. For many blockchains scaling up their network to support millions of transactions per hour is the ultimate goal.
BSC uses Proof-of-Stake consensus mechanics, requiring a limited number of validators. Because there are fewer nodes, the network can run faster. In addition, the blockchain consumes less energy, giving it an edge over energy demanding networks like Ethereum. However, it’s important to note that Ethereum will make a transition to a similar Proof-of-Stake network mechanic next year.
Right now Solana should be capable of supporting 65.000 transactions per second. However, earlier this year we’ve seen the network fumbling when there was high-demand. Nonetheless, Solana has seen continued growth over the past few months, signalling a demand for blockchain ecosystems with fast transactions, high throughput and low fees.
However, the blockchain industry can’t compete yet with centralized payments networks. Mastercard processes more than 1 billion transactions globally per day, which means 11.574 transactions per second. However, it might take a few days before transactions are completely settled. Right now BSC has set their record at 14.7 million transactions in one day, so that’s still far removed from the throughput of legacy financial services. At least the transactions are final within seconds, which is a strong competitive advantage.