Binance Smart Chain 2021 Outlook: A Bullish Year Ahead

The power of network effects is apparent as more and more people find their way onto the BSC ecosystem. This makes me incredibly bullish; when looking at the data, you can only see growth, week after week.

By
Rich
on
March 22, 2021
Category:
Breaking News

Introduction

Since the start of the Binance Smart Chain (BSC) a half year ago (September 2020) the chain has been growing fast. Reaching one million unique wallet addresses in early February was quite a milestone. After this milestone was reached people really started talking about the BSC and its fast and cheap transactions. The trend has only accelerated; in the past six weeks (now), the number of unique wallets has risen to over sixty million unique wallet addresses. The growth can also be seen in the form of network utilization, and daily transactions count. The network utilization was at about 10% in early February, which spiked to 53% and stabilized around 35%. The daily transactions count saw the same increase, and the BSC is handling an average of 2,800,000 transactions per day, more than double the amount that the Ethereum Network can take.

Why the Binance Smart Chain?

The Ethereum Network was not affected by the growth of the BSC; congestion on the Ethereum Network remains in the 98% region. The network is handling about 1,300,000 transactions a day (ceiling). This makes transactions on the Ethereum Network expensive as people start outbidding each other for faster confirmations. In times of heavy traffic, when doing a contact interaction, the transaction could cost you anywhere from $20 to $2000.

This scenario is almost unthinkable for the BSC as the gas fee will remain 10gwei as long as the network is not fully congested, which will probably not happen as developers are already looking at the possibility of scaling the network capacity.

Not only the fact that the BSC is fast and cheap contributes to its success. Ethereum Virtual Machine (EVM) compatibility means that projects and developers from Ethereum based projects could easily migrate or fork their projects onto the BSC. The Binance accelerator fund has been put into place to reward builders #BUIDL and offer Binance services and marketing assistance. When granted, the project could also be listed on the Binance CEX (centralized exchange).

Projects can also apply for the reward program, giving them back a portion of the project's contracts' gas fees. For February, an amount of $3,248,000- was paid out to various projects on the BSC. These incentives have helped get the attention of many projects. This is displayed through the many new and Ethereum based projects that have moved to BSC. The friendly BSC communities welcome them all, granted the increase of volume for those projects once migrated/deployed to the BSC.


Plans for 2021

The main goal of the BSC is to make De-Fi accessible for everyone. It also has to work flawlessly. Another goal is to bridge the BSC to (all) other chains. There is already a working bridge for Ethereum assets (Panama) in place. Through the bridge, there are over forty coins available for wrapping.

The stars are the limit, as Binance envisions the IOV "internet of value." This will be just like the internet of things (IoT). This would mean that users could use their wallet for everything, interacting with CEX, DEX, and De-Fi protocols; you could even pay your bill at a restaurant. Everything would work together, making use of the BSC for smooth operations.

The Web3 protocol is the connecting layer and connects the real world with the digital world.

Web 3.0 is the internet of the future and will include many features such as blockchain technology, augmented reality, location services, IoT devices, and possibly even AI (artificial intelligence) implementations.

The BSC will further be developing so that users get a safe product that fulfills all the criteria for secure, fast, and cheap transactions. The aim is to create APIs that connect and bridge multiple chains and CEXs to your wallet. This makes it easy for the users to access their assets across various platforms, centralized and decentralized.

BSC aims to bring more real-world assets, such as stocks, through adaptation, meeting institutional standards, and increasing the use case for the network Adoption is also pursued by focusing on specific aspects, such as gaming, NFT collections, or fan tokens. These upcoming segments will attract new users and will bring innovations to space.

Binance will be looking at a multitude of dAPP categories,

These dAPPs would be categorized as follows;

  • Algorithms

Projects like bdollar (BearnFi), DittoMoney, BoltDollar, and SoupProtocol are examples of these algorithmic tokens that can be found on the BSC

  • Aggregation and Integration.

Yield optimizers and aggregators are essential for the maturity of  the De-Fi landscape

Projects such as Beefy.finance, Bearn.fi, 1inch, Autofarm, ValueDeFi,  OpenOcean, and Xend (De-Fi for credit unions and cooperatives).

  • Cross-chain and Multichain

Making digital assets interoperable across multiple networks is very important to reach set goals of interoperability. Projects include  BTCST (Bitcoin computing power token), Anyswap, NerveNetwork, PolyNetwork, renVM, and OpenOcean

  • Gamification.

BSC welcomes the gaming industry in an effort for an early use case on blockchain networks.

Projects such as Blink and Rocketgame can already be found on the BSC

  • Community and Social Tokens

NFTs and specialized tokens on the BSC provide users with manageable minting and of trading their NFTs, offering a unique solution for online communities or others to create specialized tokens.

Projects like Chiliz, and Realy provide in NFTs and Fan tokens.

  • Synthetics

BSC also supports the creation of synthetic assets or assets that combine various derivative products.

Suppliers like Mettalex and Mirror Protocol are active on the BSC

  • Infrastructure and Tools

Maybe the most essential part, infrastructure for builders.

These are helpful tools for building various applications on BSC. It supplies the solutions that help developers in deploying smart contracts and monitoring data.

These projects include projects like Bitquery, PARSIQ, Tenderly, BSCscan, ChainIDE, Mywish, and Nownodes.

Final Thoughts

I will not lie to you; I am a Binance Smart Chain fanboy. From my first trade on, I was in love; nothing could make me waste anymore of my money on expensive transaction fees. I also don't particularly appreciate waiting for extended times. So how do I see the future of the BSC?

I am incredibly bullish; when looking at my weekly recap, you can only see growth, week after week. Many projects are making BSC their home, and their users thank them, which can be seen in the volumes that have picked up significantly.

The power of network effects is apparent as more and more people find their way onto the BSC ecosystem. But these new users are not only Ethereum users. Many of these new users are either completely new to crypto or have been in crypto but have not tried De-Fi out yet. Because Ethereum's congestion is not declining and the traffic on the BSC and other chains is increasing, it means that more users, in general, are finding their way to the fields of De-Fi. Welcome farmers, may your harvest be bounty-full.

If the integrations proposed by Binance get implemented, and we get an "Internet of Value," it could mean that you can pay for your groceries through your TrustWallet or even Metamask app. Pay with your just harvested De-Fi yields. Now how is that for decentralization?

So far, my BSC journey has been incredible, and I cannot wait to see what more innovations it will bring in the (near) future. Les go.

For more info on the BSC, check the following liks;

Binance

BSC

Introduction

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Rich

Richard is a multilingual writer, located in the Netherlands, husband and father, cryptocurrency and tech enthousiast enjoys long walks and bicycle rides. Fervent Binance Smart Chain projects promotor.