The blockchain industry has been undergoing a major transformation thanks to the innovative layer 2 scaling solutions.
These solutions have brought about a significant shift in the space by offering faster and cheaper transactions, as well as greater scalability and enhanced privacy and security.
With their ability to handle a large volume of transactions at lower costs, they have become a popular choice for blockchain users around the world.
However, as the competition among blockchain networks continues to intensify, some are exploring new ways to increase their competitiveness.
What Did Binance Propose?
Recently, Binance proposed low-cost of transaction fees on the Binance Smart Chain, a move aimed at attracting more users to the network.
The proposed reduction in transaction fees on Binance Smart Chain would make it a more cost-effective option for users, especially those who are conducting a large number of transactions.
This would not only make it more attractive to current users but would also encourage new ones to join the network.
By adopting this proposal, Binance Smart Chain would improve its competitiveness and strengthen its position as a leading blockchain network.
It would further cement its reputation as a network that is focused on meeting the needs of its users and offering them the best possible experience.
The Binance Smart Chain has recently been facing stiff competition from other blockchain networks, and to stay ahead of the curve, a proposal was submitted, calling for an adaptive transaction cost distribution Binance Smart Chain network.
The proposal advocates for a more flexible transaction fee structure that would ensure efficient block utilization and attract new users to the network.
The proposal further suggests that this approach would help sustain the BNB economy, which is crucial to the BSC’s growth and success.
By enhancing the BSC’s position in the market, particularly in the multichain strategy present in its extensive roadmap, the BSC network would become more appealing to users, investors, and developers.
The proposal highlights that the BSC’s high gas fees have impeded network activity, and the utilization rate of around 15-20% could worsen if the gas fee is left unchecked.
Currently, BSC transaction costs are set at a relatively high fixed rate of 5 gwei, which may not be as appealing to users as the affordable fees offered by layer 2 solutions that are outside of BSC’s ecosystem.
How Will the Flexible Fee Structure Help?
This move would not only benefit BSC users but would also help the network compete with other blockchain networks that offer more affordable transaction fees.
The proposal to adopt an adaptive transaction cost distribution has recommended that users be allowed to choose fees below the current 5 gwei rate, with options to go as low as 3 or 4 gwei.
This user-centric approach is expected to make the BSC L1 a highly attractive option compared to other ecosystems’ L2 solutions while also giving a competitive advantage to possible BSC L2 solutions.
Binance Smart Chain has recently released its roadmap, which highlights its focus in 2023 on achieving EVM compatibility and launching its new layer 2 infrastructure, zkBNB, along with BNB Greenfield, a blockchain-based Web3 infrastructure.
Despite the notable increase in daily transactions on BSC, which represents almost 60% growth since the beginning of the year, the network has experienced significant disruptions in 2022.
These disruptions included a temporary halt of network operations following a $600 million hack in October and several hacks of decentralized finance protocols operating on the network throughout the year.
While BSC has faced significant disruptions in the past, the network’s roadmap and recent initiatives show its dedication to addressing these challenges and improving its infrastructure.
With the proposed changes, BSC aims to increase its competitiveness, attract new users, and provide an exceptional user experience. It remains to be seen how these propositions if accepted, change things for binance and the crypto sphere as a whole