Learn about these two main blockchains and how each one stands out
Ethereum and BNB Chain are two of the most popular blockchains in the world. While both lead in DeFi’s large and loyal communities, the Ethereum vs. BNB Chain discussion is continually taking place in the battle of the blockchains. We take no part in this fight. This article will clearly compare the blockchains so you can make your own judgment.
Table of Contents
To start with, let’s dive into how each blockchain was created, their journey so far, and the roadmap ahead.
The leading smart-contract blockchain in the world, Ethereum was first described in a white paper in 2013. When it was officially launched, in 2015, the list of founders included Charles Hoskinson, Anthony Di Iorio, Mihai Alisie, Amir Chetrit, Gavin Wood, Jeffrey Wilcke, Joseph Lubin, and their leader, Vitalik Buterin.
Idealized as a “world computer,” Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third-party interference. Ethereum’s blockchain is powered by the Ethereum Virtual Machine (EVM), which allows developers to create decentralized apps (dapps) and tokens.
It was the first major blockchain to allow for the creation of dapps and ERC-20 tokens, and Ethereum’s popularity has only grown since then.
- Keep learning: What is Ethereum: DappRadar’s Ultimate Guide
As you may know, the BNB chain is the result of Binance´s rebranding. This happened in February 2022, when Binance Smart Chain (BSC) and Binance Chain merged into BNB Chain. The organization sought to solve each blockchain’s limitations by uniting them into one.
BNB Chain is Ethereum Virtual Machine (EVM) compatible, meaning that Ethereum dapps can be easily ported over. In fact, it’s quite common for BNB Chain dapps to mirror the ones built on Ethereum.
The key difference here remains in what technology each blockchain uses.
- Want to dive deeper? Read our complete guide: What Is BNB Chain and How Does It Work?
Comparing Ethereum with the BNB Chain forces us to consider Ethereum 2.0, also known as the Ethereum consensus layer.
This transition from Proof of Work (PoW) to Proof of Stake (PoS) is Ethereum’s way of ensuring that the blockchain will be more scalable, secure, and environmentally friendly. After years of work, the Ethereum main net will finish its migration to the Ethereum consensus layer on September 6, 2022.
On the other hand, Binance’s BNB blockchain is known for being way faster and cheaper than Ethereum. This is due to its Delegated Proof-of-Stake (DPoS) consensus algorithm, which allows it to process more transactions per second (TPS).
Once Ethereum starts using the Ethereum consensus layer, the Ethereum vs. BNB Chain discussion may be rekindled.
Now let’s talk about Ethereum’s and BNB Chain’s tokens and have a deeper understanding of how they work.
Ethereum’s token is called Ether (ETH), and it is necessary to pay transaction fees on the network. Developers also use it to build dapps and Ethereum-based tokens.
ETH’s value has increased a lot in recent years, and it’s the second most valuable cryptocurrency, only after bitcoin. Ethereum’s total supply is capped at around 115 million ETH, as you can track at DappRadar’s Token Explorer.
So far, while Ethereum used a Proof-of-Work consensus algorithm, Ethereum miners were rewarded with ETH for validating blocks. With Ethereum’s transition to the Ethereum consensus layer, stakers will be able to validate blocks and earn ETH.
- Read further: What is the Ethereum (ETH) coin?
The Binance token (BNB) is the native cryptocurrency of the Binance ecosystem. It was initially created as an Ethereum ERC-20 token to raise funds for developing Binance’s cryptocurrency exchange.
With the launch of Binance Chain, BNB was moved off Ethereum and became the native token of Binance Chain – and the rest you can figure. Now you can use BNB tokens to pay transaction fees on the network, on BNB Chain dapps, and to create new tokens on BNB Chain.
- Learn more about this cryptocurrency in the complete article: What is the BNB Token
Dapps on Ethereum and BNB Chain
If you want to directly compare the decentralized applications (dapps) built on each blockchain, you won’t find a better tool than DappRadar’s Rankings.
Integrated with both Ethereum and BNB Chain, on DappRadar, you can browse through the best dapps, ranked by specific metrics like daily users, daily volume, and more. To make your research even easier, it’s also possible to filter by dapp categories – such as games and exchanges.
Ethereum and BNB Chain are two of the main blockchains that support DeFi projects, and their exchanges are the most used ones.
Amid the collapse of Terra 2022, we saw BNB Chain emerge to become the 2nd largest DeFi blockchain with a Total Value Locked (TVL) of $6 billion. Ethereum still remains the leading blockchain for decentralized finance projects, with a TVL of $37 billion.
On the one hand, some users prefer the traditional but constantly updated Ethereum exchanges, like Uniswap and Curve. However, the network’s high fees have driven many people away from exchanges on other networks.
This way, DeFi projects on BNB Chain began to gain traction. BNB Chain exchanges like PancakeSwap and BakerySwap, which are, in essence, inspired by Ethereum exchanges, have become quite popular in 2021.
In the same way, Ethereum is also game developers’ favorite blockchain to build – even with scalability and network limitations of PoW.
Considering that gaming dapps drive 52% of all blockchain activity and that blockchain gaming has proven its resilience during the bear market, we can expect a game changer when Ethereum 2.0 finally arrives.
The scenario for games built on BNB Chain isn’t that much different, either. As you can read in DappRadar’s BNB Chain Report of August 2022:
“Games are the second most crucial vertical for BNB, contributing 25% of all on-chain activity.” Sara Gherghellas, analyst at DappRadar
The very first non-fungible tokens (NFTs) to be ever created were built on the Ethereum blockchain, and it was only until the end of 2021 that we started seeing NFTs on BNB.
ERC-721 and ERC-1155 tokens, more popularly known as NFTs, have grown to be a whole new industry leading Web3 adoption.
From 2021 to 2022, the BNB Chain saw its NFT trading volumes spike. Despite this optimistic fact, the total volume of sales of these tokens is still far lower than collections on Ethereum.
Take a look at the most popular NFT Collections on Ethereum vs BNB Chain below:
If you want to explore NFTs on different chains, visit the DappRadar NFT Overview for some awesome statistics.
Ethereum vs. BNB Chain
As discussed in the Web3 community for some time now, the future is multichain. And since DappRadar doesn’t take sides on which blockchain is better, we know that the space gets much more enriched when these conversations take place. Perhaps the Ethereum vs. BNB Chain discussion isn’t even valid, but through comparisons, projects also find fuel to innovate.
BNB Chain has cheaper transaction fees and faster operations, but that remains to be seen after the Ethereum Merge. While the blockchain has had good months of growth (considering the bear market), Ethereum remains a giant, leading in all areas.
Still, considering that we are still in such early stages of the Web3 race, this does not define the future of blockchain technologies. There is still a long way to go, and DappRadar will be your watcher on call. Whenever you want to learn more about the exciting world of dapps, count on us.
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The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research.