Layer 2 scaling solutions have revolutionized the space with faster and cheaper transactions, as well as increased scalability and improved privacy and security.
In an effort to increase its competitiveness against competing blockchain networks, a proposal has been submitted to adopt a lower transaction cost on Binance Smart Chain (BSC).
The proposal, submitted on March 28, Underline the need for a more adaptive distribution of transaction costs on the BSC network with a more flexible transaction fee structure in an effort to ensure efficient use of blocks and attract new users. He further stated that such an approach would help support BNB’s economy while strengthening BSC’s position in the market, especially in the multi-channel strategy set out in its roadmap.
According to the proposal, BSC’s high gas charges hampered network activity and claimed that usage of around 15-20% could worsen if gas charges were not controlled.
“BSC transaction costs are currently set at a relatively high fixed rate of 5 gwei, which may not be as attractive to users as the more affordable fees provided by L2 solutions outside of the BSC ecosystem. This will ensure that existing and future BNB Chain L2 solutions will remain competitive and keep attractive users in the ecosystem.
The proposal for BSC validators is to allow users to choose fees below the current rate of 5 gwei, with options up to 3 or 4 gwei, depending on their financial needs. This approach, according to the user, “would make BSC L1 more attractive than L2 solutions from other ecosystems and provide a competitive advantage for potential BSC L2 solutions (BSC L2 should have a target of <$0.005/tx."
In addition to the high volume of transactions on BSC, which would provide a strong financial incentive to participate as validators, the approach is also expected to improve sustainability, attract new users and optimize the use of blocks on the network.
Binance Smart Chain Hacks
In a recent deployment roadmap, BSC said the focus in 2023 will be EVM compatibility and the mainnet launch of its new Layer 2 infrastructure, zkBNB, and BNB Greenfield, the blockchain-based Web3 infrastructure. The blockchain also intends to increase its throughput from 140 million gas limit and 2,200 TPS to 300 million gas limit and 5,000 TPS.
Meanwhile, daily transactions on BSC have increase by nearly 60% since the start of this year, rising from 2.46 million to 3.89 million as of March 29. Despite the notable uptick, BSC suffered significant disruptions in 2022.
Network operations were temporarily halted following a $600 million hack in October. Several decentralized finance protocols hosted on the network were also hacked throughout the year. This included Uranium Finance, Spartan Protocol, Meerkat Finance, etc.
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