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Why is Katheer based on Binance Smart Chain (BSC) and not Ethereum?
The Katheer token uses the Binance Smart Chain (BSC) network to enable fast cross-chain compatibility. Gain insight into Binance Smart Chain (BSC) 's progress since its September 2020 launch and act as a parallel chain to Binance Chain. Binance Smart Chain (BSC) launched as a parallel chain to Binance Chain to provide a high-throughput blockchain that enables DeFi applications to thrive [32]. It was built to be Ethereum Virtual Machine (EVM) compatible, allowing developers to seamlessly deploy the DApps built for Ethereum on Binance's new blockchain [32]. It was developed to utilise solidity-based smart contracts with much greater speed and efficiency than other competing chains [32]. With decentralised exchanges on BSC offering lightning-fast swaps and extremely low fees, BSC has become one of the most widely used blockchains for Decentralised Finance (Defi) [33]. BSC uses a token protocol developed by the BinanceTeam called BEP-20, known for 5-second block speeds much faster than others with 1-minute block speeds [33].
The benefit of using the BSC is that it has a low fast fee which is 0.000000001 BNB or 9-10 Gwei [34]. The block is created every 5 seconds and is compatible with Ethereum Virtual Machine (EVM), where BSC's dApps are the cheapest ones to run; it's also easier to transfer, create and send existing Ethereum apps over [34]. Ethereum's dApps, in comparison, are faster and more efficient [34].
Binance Smart Chain (BSC) is a proprietary blockchain that will provide security and safety to all users and developers [33]. Its native dual-chain interoperability will allow cross-chain communication and scaling of high-performance dApps that require a fast and smooth user experience [33]. Moreover, it's EVM-compatible and will support all of the existing Ethereum toolings along with faster and cheaper transactions [33]. Its on-chain governance with Proof of Staked Authority consensus, built on 21 validators who validate the transactions, will provide decentralisation and enable significant community involvement [33].
Additionally, BSC supports cross-chain transfers and allows for creating "pegged coins" (tokens pegged to the BSC chain), including BTC, ETH, TRX, and more [35]. Pegged coins operate as BEP-20 tokens on Binance Smart Chain, similar to Ethereum's ERC-20 tokens [35]. Moreover, BSC's BEP20 token standard enables developers to create easily and issue tokens representing a wide range of asset types [35]. With a 5-second block time and a Proof-of-Authority (PoA) consensus mechanism, BSC enables high-speed transactions that only cost network participants a few cents [35]. As a result, decentralised applications built on Binance Smart Chain have already experienced substantial user uptake, with DeFi apps leading the foray [35]. On September 14, 2020, the BSC network processed the highest daily transactions, totalling 402,572 [36]. On that day, the average block time was 3.00 seconds. Currently, the average gas fee (transaction fee) amounts to 22.5560 gwei on Binance Smart Chain, making it one of the blockchain networks with the lowest transaction costs in the market [36].