Why Dpad Chose Binance Smart Chain
Defi projects started out primarily being built on the Ethereum blockchain; however, in May 2021, the Binance Smart Chain saw a tremendous spike in addresses. This transition of projects from Ethereum to BSC chain occurred due to exorbitantly high gas fees on Ethereum blockchain. Therefore, BSC posed a solid alternative to the new projects in escaping the gigantic gas fees.
Experts anticipate the number of projects on BSC will have a growth trajectory in the coming times. Even after the fee issues on Ethereum get solved after the successful upgrade to ETH 2.0, the BSC ecosystem shall thrive. At the moment, BSC is the best alternative to the Ethereum blockchain for building new projects. So we developed the Dpad protocol based on the Binance Smart Chain network.
Let's take a closer look at the data to figure out how much the BSC ecosystem has grown compared to Ethereum and other Blockchains:

Average Gas Price

For the past couple of months, the average gas fee on Binance Smart Chain has been just 8 Gwei which is less than a millicent, whereas the average cost on Ethereum has been north of 100 Gwei. BSC has a low fee advantage, which is attractive even for small players to build on it. Smart contracts often trigger numerous transactions, so choosing cost-efficient infrastructure is crucial for startups. Thus, our decision to start the Dpad protocol on BSC.
Ethereum Gas Fees

Unique Address Count

To gauge a blockchain's network growth, we can estimate it by the number of its coins/tokens holders. However, unique address count cannot signify the exact number of users of that chain since a user can create multiple wallets, thanks to the magic of cryptography. But with the number of unique addresses, we can gauge a rough estimate of the network's growth. The rate BSC is gaining on Ethereum is quite remarkable. In only one short year, the number of unique addresses on BSC went from 1 million to 126 million, compared to ETH growing from 133 million to 183 million individual users on the Ethereum blockchain. BSC has the closest chance to parallel the users available on Ethereum.
BSC added double the number of addresses as Ethereum in the same period. Will 2022 be when the BSC network passes ETH in the number of unique addresses? Only time will tell.

Daily Transactions

The number of transactions happening on a network can help us understand the frequency of activities on the network. The transactions on the blockchain can be between two users or events on smart contracts. Surprisingly, the monthly avg daily number of transactions on BSC is 6 million, greater than that on the Ethereum network, which is 1 million. Also, the daily highest transaction count on BSC was 11 million, whereas the transaction count on Ethereum has only ever peaked at 1.7 million. This data clearly states the reluctance of users to transact on Ethereum due to the mammoth gas fees and network congestion. While choosing a Blockchain, BSC has been the number one alternative for the latest projects.

Conclusion

The Dpad will initially be built on the Binance Smart Chain for the following reasons:
  • A growing ecosystem of BSC projects and communities is attracting many talented developers to build on the BSC chain. Thus, we want to facilitate project launching for that community.
  • Due to the enormously high gas fees on the Ethereum blockchain, it has become suicidal for projects to operate on Ethereum. As a result, the developers and investors have been switching to alternatives like BSC, Polkadot, Solana, Matic blockchains with lower fees and faster transaction speeds.
  • Over time, the Dpad protocol shall evolve to a multichain launchpad protocol allowing the projects on blockchains other than BSC to launch and benefit from the Dpad community.
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Average Gas Price
Unique Address Count
Daily Transactions
Conclusion