ASI Highlights the Benefits and Positive Impact of the Binance Smart Chain After Its Launch on the Platform
Thanks to the low transaction fees on the Binance smart chain, the ASI project has witnessed an upraise in the volume of transactions after launching on the Binance Smart Chain
ASI is the first AI-backed DeFi project that aims to solve the unfair rewards distribution mechanism in the Decentralized Finance (DeFi) sector. The Ethereum blockchain has been instrumental to the rise of Decentralized finance.
They developed every DeFi project on the Ethereum blockchain. However, the recent congestion and lofty transaction fees in the Ethereum ecosystem have made it difficult to buy and sell DeFi tokens on the blockchain and automatically reduced the volume of transactions of many quality products, ASI included.
After a successful run on the Ethereum network, ASI developers felt the need to migrate to a platform with cheaper transaction fees as trading volume had dropped on the Ethereum blockchain. The trading volume is important for a yield generation DeFi like ASI as it pays rewards out to holders in tandem with the trading volume.
Low trading volumes mean lower rewards and a decrease in the number of holders and the value of the coin, while a high trading volume will boost rewards, the value of the coin, and the number of holders.
Recently, we created a cross-chain of the product on the Binance Smart Chain and we have seen a significant increase in trading volume. This is because of the lower transaction fees on the Binance Smart Chain as compared to Ethereum. The high trading volume on the BSC has made it possible to Proof the concept of implementing AI (Artificial Intelligence), and Machine Learning in Decentralized Finance (DeFi).
What Is Binance Smart Chain
Binance is the most popular cryptocurrency exchange in the world. Binance went two steps further by first creating the Binance chain for the BNB currency that was formerly an ERC-20 coin, and now the Binance smart chain for developing smart contract and DeFI projects known as CeDeFi on Binance.
The Binance Chain differs from the Binance Smart Chain. They optimize the Binance Chain for fast trading on the Binance exchange, while the Binance smart chain is a powerful ecosystem for building high-performing decentralized applications with low cost of on-chain transactions.
The Binance smart chain runs in parallel with the Binance chain. The Binance smart is compatible with the Ethereum network or the Ethereum Virtual Machine. Therefore, we can relaunch projects like ASI that were launched on the Ethereum network on the Binance Smart Chain.
This compatibility between BSC and EVM makes it easy for developers to build amazing projects using the rich ecosystem of tools on the Ethereum platform and easily port them to the Binance Smart Chain.
These rich features make the Binance smart chain a more desirable blockchain platform for new smart contract projects. However, the lower transaction fees on the BSC is giving developers the incentive to choose the Binance smart chain over the Ethereum network.
Who wants to spend $40 as a transaction fee for a transaction of say $70. Yes, it gets as high as that during peak trading activities on the Ethereum network.
Benefits Of The Binance Smart Chain For DeFi Projects
They created the Binance smart chain just in time for the DeFi boom. The Binance Smart chain offers almost everything you can get on the Ethereum network and with cheaper fees. The Binance Smart Chain also allows users to peg several existing digital assets on the Binance chain. We know these coins as Peggy coins.
By creating peg coins that closely track the value of the assets they’re pegged to, you can easily trade your tokens and incur fewer transaction fees on the Binance chain. The flexibility of the Binance Smart Chain makes it a DeFi haven. You can easily swap assets using swapping platforms like Pancakeswap, engage in yield farming, stake, and even vote on proposals faster and cheaper.
