New Binance Smart Chain Suggestion aims to reduce the transaction fees: Report
New Binance Smart Chain Suggestion aims to reduce the transaction fees: Report
Layer 2 scaling solutions have revolutionized the area with faster and cheaper transactions as well as increased scalability and improved data protection and security.
In order to increase competitiveness compared to competing blockchain networks, a proposal was submitted to introduce lower transaction fees for Binance Smart CHAIN (BSC).
BSC proposal
The proposal submitted on March 28 emphasized the need for a more adaptable transaction cost distribution in the BSC network with a more flexible transaction fee structure to ensure efficient block use and attract new users. It also found that such an approach would help maintain the BNB economy and at the same time strengthen the position of BSC on the market, especially in relation to the multicia strategy.
According to the proposal, the high gas fees from BSC have hindered network activity and claims that the occupancy rate of around 15-20 % could make it difficult if the gas fee is not controlled.
"BSC transaction costs are currently set to a relatively high fixture of 5 Gwei, which may not be as attractive for users as the cheaper fees that are provided by L2 solutions outside the BSC ecosystem. This will ensure the existing and future BNB Chain L2 solutions remain competitive and keep attractive users in the ecosystem."
The proposal for the BSC validators is to give users the opportunity to choose fees under the current sentence of 5 Gwei, with options that can decrease up to 3 or 4 Gwei depending on their financial needs. This approach, according to the user, "would make BSC L1 more attractive than the L2 solutions of other ecosystems and a competitive advantage for potential BSC L2 solutions (BSC L2 should have a goal of <0.005 $/tx).
In addition to the high transaction volume on BSC, which would serve as a strong financial incentive to participate as validators, the approach should also improve sustainability, attract new users and optimize block use in the network.
Binance Smart Chain Hack
In a recently introduced roadmap, BSC said that the focus in 2023 will be on the EVM compatibility and the start of its new Layer 2 infrastructure, ZKBNB, and BNB Greenfield, the blockchain-based web3 infrastructure. The blockchain also intends to increase its throughput of 140 million gas limit and 2,200 TPS to 300 million gas limit and 5,000 TPS.
In the meantime, the daily transactions on BSC have increased by almost 60 % since the beginning of this year, from 2.46 million to 3.89 million on March 29. Despite the remarkable increase, BSC suffered significant disorders in 2022.The network operation was temporarily discontinued after a $ 600 million hack in October. Several decentralized financial protocols that are accommodated in the network were also witness to hacks during the year. This included Uranium Finance, Spartan Protocol, Meankat Finance, etc.
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