Apr 9, 2021
Why Spherium Leverages Binance Smart Chain for Token Swap
Key Highlights
- Spherium is building its token swap protocol on both Ethereum as well as Binance Smart Chain.
- BSC is cost-efficient, provides quick settlements, and supports smart contracts, EVMs.
A critical factor in the success of any technology is its affordability.
Blockchain technology has immense potential but it’s struggling to control transaction costs, and we’re talking about Ethereum, the most popular blockchain network at the moment.
Our research reveals that a simple ERC20 transfer on Ethereum networks costs between $10.65 and $13.62. Similarly, you have to spend between $32.77 and $41.89 for a Uniswap swap.
Source: Etherscan
As a platform that intends to boost DeFi adoption, we’re aware of the burgeoning cost of Ethereum transactions. And that’s why we’re building Spherium token swap across two platforms, Ethereum and Binance Smart Chain.
The Space Oracle has given a thumbs-up to BSC.
Binance Smart Chain (BSC) has witnessed monumental growth over the past couple of months, and it’s for all the valid reasons.
We analysed multiple blockchain networks, factoring in their scalability, cost of transactions, and confirmation time. BSC ticked all the boxes.
Low transactions fees and quick settlements.
First and foremost, transactions on BSC cost only a fraction of their Ethereum counterparts. And we dug up this Tweet from C.Zhao, CEO of Binance, summing up the difference.
Source: Twitter.
BSC uses Proof of Staked Authority (PoSA) consensus mechanism, under which 21 validators stake their BNB to secure and maintain the network. These stakers receive gas fees as reward for upkeep the network.
Additionally, BSC and Binance Chain are interoperable, which allows BSC to leverage the quick settlements and high transaction throughput offered by the latter for its dApps.
Supports smart contracts & EVM compatibility
BSC supports smart contracts and is compatible with the Ethereum Virtual Machine, making it suitable for Spherium’s current requirements.
Bottom line: We’re building on Ethereum & BSC both.
Spherium believes in the power of choice, and that’s why we’re building our token swap on both Ethereum as well as BSC. Our MVP is live on the testnet, undergoing iterations, security checks. Spherium team is working hard to integrate layer 2 solutions, so our Ethereum token swap protocol will be up for upgrades in the coming months.
If you want to know more about our project, join our Telegram community today. https://t.me/SpheriumCommunity
