Rewritten Article:
Binance founder floats idea of slashing BSC transaction costs by three to tenfold
Let's Lower BSC Gas Fees, Says Binance Founder
The CEO of Binance, Changpeng Zhao (CZ), recently suggested slashing gas fees for the Binance Smart Chain (BSC) network by a whopping 3 to 10 times its current rate.
Posting his idea on a popular platform on May 7, CZ sparked a conversation about the feasibility of this gas-fee reduction. As per data from Y Charts, BSC's average gas fee currently hovers around 2.163 Gwei, a drop of 3.91% from the previous day's average of 2.251 Gwei. Compared to last year, the gas fee has plummeted a significant 41.40% from 3.691 Gwei.
In the world of BSC, Gwei represents the unit of BNB bnb-0.2% BNB used to measure gas fees, much like its counterpart, Ethereum's eth0.59%, uses Gwei to quantify expenses in its network. Essentially, it's a standardized benchmark for processing transaction costs across the network. One Gwei equals roughly 0.000000001 BNB.
"Should we knock BSC gas fees down 3x, 10x?" wrote Zhao on his official account, stirring up a heated debate amongst traders.
The opinion was divided, with some impassioned advocates arguing for an absolute waiver of gas fees, citing the current fees as virtually negligible for them. According to Dune Analytics, BSC Chain boasts one of the most budget-friendly gas fees amongst Layer 1 networks.
In the past seven days, BSC Chain has racked up an average gas fee of $0.093, with a median gas fee of $0.034. In comparison, Ethereum's average gas fee stands at $0.34, and its median gas fee is currently at $0.088. Avalanche avax-3.06% Avalanche's reported average gas fee pales in comparison to both BSC Chain and Ethereum, pegged at $0.022. Avalanche's median gas fee is measured at a minuscule $0.002.
On the far end of the spectrum, Solana sol0.69% Solana and Polygon pol1.25% POL (ex-MATIC) lead the way with the lowest gas fees among Layer 1s. Polygon's average gas fee is measured at $0.003, and its median gas fee sits at $0.001. Solana mirrors Polygon's median gas fee rate, with an average gas fee of $0.019.
Dealing with Gas Fees: Proposal and Challenges
Lowering gas fees is a contentious issue, fraught with potential pitfalls. With such drastic reductions, validators and builders may find it challenging to sustain the network, as fees would no longer cover essential operational costs. CZ acknowledges this point, stating, "Lots of spam, and also need to consider validators and builders."
Such a move could, however, open the doors to an influx of new users and developers, breathing fresh life into the network. Nevertheless, the implications of such action extend beyond the costs and would necessitate careful consideration of network strain and spam proceedings if fees drop too low.
Aside from the practical concerns, the move also holds strategic value as it positions BSC as a cost-effective rival against other blockchain networks like Ethereum and Solana. With Ethereum working to optimize its efficiency through upgrades and Solana boasting extremely low fees, competition in the blockchain space is heating up.
In light of these considerations, CZ's proposal presents both an exciting opportunity for growth and a complex challenge to navigate. Keep a close eye on future developments as the BSC community continues to mull over the potential impact of lower gas fees.
- The founder of Binance, Changpeng Zhao, has suggested reducing gas fees for the Binance Smart Chain (BSC) network by three to ten times their current rate.
- As per data from Y Charts, BSC's average gas fee currently hovers around 2.163 Gwei, a drop of 3.91% from the previous day's average.
- Gwei represents the unit of BNB used to measure gas fees on the BSC network, much like Ethereum's network uses Gwei to quantify expenses.
- CZ's proposal stirred up a heated debate amongst traders, with some arguing for a waiver of gas fees due to their current negligible cost.
- In the past seven days, BSC Chain has averaged a gas fee of $0.093, significantly lower than Ethereum's average of $0.34.
- Lowering gas fees could attract more users and developers to the BSC network, but it could also strain the network due to challenging operational costs for validators and builders.
- The move to lower gas fees positions BSC as a cost-effective rival against other blockchain networks like Ethereum and Solana, where competition in the blockchain space is heating up due to efforts to optimize efficiency.
