To explain the relatively sudden success of Binance Smart Chain, we have to take a closer look at Ethereum. Since 2015, the open-source system has allowed decentralized applications to be directly programmed on the blockchain. Starting in 2020, however, the system repeatedly made headlines as transactionalfees skyrocketed to sometimes dizzying heights. Because the network only allows a limited number of simultaneous transactions per second, demand increased, and so did the costs. While Ethereum works on a better solution, many users are looking for equivalent or at least roughly comparable alternatives – like BSC.
In early 2021, Binance Smart Chain took advantage of Ethereum’s problems and established itself as a significantly cheaper yet reliable fallback option. This also works because decentralized financial markets often rely on the open source idea and the switch from Ethereum to Binance Smart Chain works smoothly and quickly.