March 15, 2021

Ethereum vs Binance Smart Chain Comparison

Ethereum vs Binance Smart Chain is one of the main clashes in the cryptocurrency market. The former is one of the largest and most popular blockchain networks in the market while the latter is trying to solve some of the issues affecting Ethereum. 

Ethereum vs Binance Smart Chain is one of the main clashes in the cryptocurrency market. The former is one of the largest and most popular blockchain networks in the market while the latter is trying to solve some of the issues affecting Ethereum. 

In this guide, we are present the main differences between Ethereum vs Binance Smart Chain. We will analyse their features, how they work and also their performance. 

What is Binance Smart Chain (BSC)?

Binance Smart Chain (BSC) is one of the latest blockchain networks to be released to the market. The goal was to offer better solutions than Ethereum to the fast-growing Decentralized Finance (DeFi) market. 

The network was released in late 2020 and was created by the Binance cryptocurrency exchange. BSC is powered by the Binance Coin (BNB) and it is now one of the largest blockchain networks in the world in terms of users and volume. 

BSC works with a token standard known as BEP20, which is different from the ERC-20 standard used by Ethereum. Additionally, the Binance Smart Chain has a different consensus mechanism than Ethereum. 

What is Ethereum (ETH)?

Ethereum is one of the oldest, most decentralized and popular blockchain networks in the cryptocurrency market. It was released in 2015 and it is now the second-largest in the world. This blockchain network has allowed for the deployment of smart contracts. 

Over the last years, decentralized applications (dApps) and decentralized finance (DeFi) solutions were released on top of Ethereum. In this way, the crypto market enjoyed a wide range of new services and solutions powered by Ethereum. 

It is worth taking into consideration that Ethereum works with the Ether (ETH) virtual currency. This digital asset can be used for a wide range of things today. Moreover, it is widely available in the crypto market. 

Differences Between Ethereum and Binance Smart Chain

There are some differences between Ethereum vs Binance Smart Chain. These are very important things to take into consideration. Each of them is offering different solutions that would meet the needs of participants in the market. 


One of the main things to mention about Ethereum vs Binance Smart Chain is related to scalability. While Ethereum has been struggling to offer fast and cheap services to users, Binance Smart Chain became a very efficient platform to use. 

Nowadays, it costs just a few cents to send a transaction using BSC. However, it can be as high as $20 to perform an ETH or ERC-20 token transaction. This is one of the reasons why some users are moving to Binance Smart Chain. 

Consensus Algorithm

However, scalability comes with some other issues. In order for the BSC to reach these scalability levels, it had to use a very centralized consensus algorithm. Indeed, there are just a few dozens of validators on the BSC. 

Ethereum is fully decentralized. There are miners working all over the world. At the same time, Ethereum wants to move to a Proof-of-Stake (PoS) consensus algorithm that would allow it to become faster and cheaper to use. 


As we mentioned before, the fees are very cheap on the BSC and very high on the Ethereum network. However, this can be explained thanks to the consensus algorithm used by BSC compared to the one implemented by Ethereum. 

A transfer on the BSC network costs between $0.02 and $0.10 and a transfer on Ethereum can cost above $20. 


Ethereum (ETH) is one of the oldest virtual currencies in the world. It is the second-largest after Bitcoin (BTC). It has a market valuation of around $180 billion. Meanwhile, Binance Coin is the fourth largest digital asset with a market capitalization of $38 billion. 

This shows that despite the recent expansion of the BSC, ETH continues to be a larger digital asset. Moreover, Ethereum can be purchased in most of the crypto exchanges in the world. Binance Coin is not yet available on every platform. 

Ethereum vs Binance Smart Chain Conclusion

This Ethereum vs Binance Smart Chain guide aimed at sharing some of the most important differences between these two networks. As you can see, BSC is much more efficient in the way it handles transactions. However, it also comes with an almost centralized platform. 

Ethereum, instead, is trying to keep with its decentralized structure and reduce its fees and transactions times. This is a very difficult task Ethereum developers have. Nonetheless, both networks are among the largest and can be used simultaneously to exchange digital assets. 

AltSignals Team

Proficient authors guiding you with transparency, integrity and education through the finance international markets

The AltSignals writing team consists of experts dedicated to the world of finance and technology, with a particular focus on cryptocurrencies and forex. Our writers bring a broad range of knowledge and experience, cultivated through years of arduous and direct involvement in financial markets, as well as intense technological collaboration.

Editorial approach

At AltSignals, we believe that transparency and education are the key to empowering our readers. Therefore, our content is meticulously researched to ensure its accuracy and thoroughness. Each of our articles is created with the aim of providing educational insights and in-depth analysis, helping both beginners and experienced traders.

Commitment to quality

Integrity is certainly the foundation of our editorial process. The team follows rigorous journalistic standards with careful review, all to ensure that each publication is meticulously researched and exceeds our readers’ expectations.

Our mission is to provide analysis that informs as well as guides users and enthusiasts through the complexities of the cryptocurrency and forex markets. In line with our motto of “quality over quantity”, we guarantee that only the highest quality trading signals are published.

In addition to our commitment, which extends beyond the simple transmission of useful information, our in-depth analysis focuses on profitability and effectiveness squarely, avoiding the common industry habit of prioritizing profit over accuracy. Our traders are strategic experts who offer personalized help to those seeking worthwhile portfolio management tactics.

Diverse knowledge

Our authors are proficient in a variety of topics across the financial spectrum, from emerging trends in blockchain to the nuances of forex trading. This diverse range of knowledge allows the team to cover several topics, ensuring our content is always comprehensive and deeply specialized.

Interactivity and support

We understand that the world of trading can be complex for many. Therefore, alongside producing informative articles, our team is also committed to interacting with the community. Through comment sections, forums and direct support, we encourage our readers to seek clarification and sharpen their understanding, promoting an environment of continuous learning.

Future vision

Looking to the future, the AltSignals writing team is imbued with a vision that transcends regular publishing, and continues to dedicate itself to discovering and reporting on the latest innovations and trends available in the market. We are constantly seeking to improve our skills and expand our knowledge, with the ultimate goal of being a reliable and respected source in digital financial journalism.

There is great commitment to discovering and reporting not only the latest news and trends in the market, but also to equipping our readers with the tools they need to navigate volatile markets with confidence. We firmly believe that, with the support of an appropriate platform coupled with accurate guidance, our readers and traders can turn market volatility into a competitive advantage.

Join us

Follow AltSignals to stay up to date with the latest developments in the world of finance and technology, and explore how our insights can help improve your trading strategies. The AltSignals team is here to guide you through the exciting, dynamic and challenging world of financial markets.

Latest posts author AltSignals Team

Latest posts from the category Cryptocurrency