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Avoiding ETH Fees with Binance Smart Chain

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I really don't know why more people haven't latched onto BINANCE Smart Chain (BSC). Even if you are a ETH maximalist who gives no credence to objectively better solutions like Honeyswap, there is really no reason for you not to use BSC.

Binance Smart Chain is not meant to replace the Eth chain. It does NOT serve as an "alternative," although it is building into a viable challenger on many levels. Right now, without changing any of your defi habits, you can begin using BSC to avoid at least a few of the outrageous fees of the Ethereum mainnet. Let me show you how.

Lending/Borrowing

If you're into the lend/borrow advantage that crypto gives you (you can deposit your crypto and earn interest while simultaneously borrowing against it as collateral), using BSC gives you even more profit. Apps like cream.finance have an interface on the Eth mainnet and on BSC. (BSC doesn't have the ability to stake the Cream token, but the speculation on the token and yield farming it has nothing to do with the core functionality of the app.)

If you try to deposit or borrow your own money from the mainnet Cream app, you might end up paying USD $20 in fees depending on how cluttered the network is. Do it from the BSC side, and you pay pennies. The smart money holds all coins on the BSC side, lends and borrows from that chain, and transfers funds to mainnet only when there is an opportunity unique to the mainnet. To move value from BSC to the mainnet, you have to move through an exchange, which generates an extra step. The money you save, however, is worth it.

Investing

The Eth mainnet still has the most ERC-20 tokens on the books. If you want to invest in certain coins like Utrust (UTK), you'll need to hold them on the mainnet. However, BSC has tokens that are pegged to many of the more prominent Eth-based projects, including those that were started on Eth and moved to their own chain. Cosmos, Chainlink, Polkadot, Filecoin, et al. can be bought, sold and held on BSC. You can all of those coins through BSC's top exchange, Pancakeswap, with less slippage and similar liquidity to Uniswap (sometimes better).

If you want, you can buy coins on BSC and take them through an exchange to hold them on the Eth mainnet, although there is really no good reason to do this. The really exciting development is that many projects are beginning to understand the advantages of BSC and are prioritizing the chain before the mainnet.

Gaming and NFTs

Binance has also done an excellent job of attracting many new projects such as Axie Infinity with huge rollouts that will certainly make gameplay much easier for those without tens of thousands of dollars. Projects like Dego which began on the Eth mainnet quickly expanded onto BSC as they realized the limitations the mainnet imposed on their ability to expand. 

Gaming projects are also exercising foresight in understanding the difficulty of creating high contract interaction platforms on a network that routinely charges $5 per interaction. Many of these projects are completely foregoing the Eth mainnet and moving straight to BSC. As the gaming and NFT market expands, the switch to BSC should bring new retail adoption into the more agile chain without the burden of previous crypto generations, which psychologically centralized the Eth mainnet.

In short, just about anything that can be done on the Eth mainnet can be done in some form on the Binance Smart Chain. Binance has billions to pour into BSCs development, so we will likely see even more opportunity in the very near future. Look to BSC as the future, especially if you do not have the money to spend on $15 fees.

(Protip: Most of the scams and rugpulls in crypto are on the Eth mainnet. Centralizing BSC will keep you away from crypto criminals along with paying exponentially less fees!)

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 11/9/2020

Digital & Hitech

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