BNB Chain set for new upgrade, follows Ethereum’s footsteps
03/14/2024 21:30
On the same day Ethereum [ETH] finalized the Dencun upgrade, BNB Chain announced that it was towing a similar path. According to BNB Chain
- The blockchain mentioned that the upgrade would bring blobs but in a different manner.
- BNB Chain registered an increase in fees generated but development activity dropped.
On the same day Ethereum [ETH] finalized the Dencun upgrade, BNB Chain announced that it was towing a similar path.
According to BNB Chain, it intends to work on a new upgrade tagged the “BEP 633” over the next few months.
The BEP 633 is similar to Ethereum’s EIP-4844, which has significantly reduced transaction costs on Layer-2 (L2) projects. Like the EIP-4844, BEP 633 brings blobs into the conversation.
Sacrifices for the cheaper route
For the uninitiated, a blob is a highly scalable type of cloud storage that compresses large data. It also eases the network verification process.
BNB Chain, in its disclosure, noted that the blobs would be useful for opBNB, the L2 of its ecosystem.
The decentralized smart contract network explained,
“The temporary attribute of blobs ensures they don’t indefinitely consume network space, leading to lower storage costs and, consequently, cheaper gas fees for users.”
This upgrade would mark the project’s third major one over the last year. In 2023, AMBCrypto reported how the chain introduced Greenfield, which focused on data storage and management.
opBNB also came into play around the same period.
However, BNB Chain highlighted the difference between EIP-4844 and BEP 633. Based on its, communiqué, blobs would be managed by the Binance Smart Chain (BSC).
It also mentioned that BSC would be in charge of the gas price mechanism and fee burn.
When BNB Chain completes this upgrade, there is a chance that its fees and revenue might decline. At press time, Artemis’ data showed that fees on the network have been jumping over the last 90 days.
Source: Artemis
Attention, not development, returns to the network
At press time, fees generated by the blockchain hit $1.3 million, indicating high network activity.
Despite the increase in activity on the network, BNB Chain has struggled to maintain consistency in development activity.
According to AMBCrypto’s analysis of Santiment data, BNB’s development activity peaked on the 26th of January.
A few days later, the metric was flat. It was a similar situation on the 3rd of March as the metric jumped.
At press time, the development activity was flat again, indicating that code commits on the network had been fizzling. However, there was one metric that put BNB in a good light, and that was Social Dominance.
Source: Santiment
Social Dominance shows the share of discussions about a project in the media. Thus, the surge meant that BNB Chain had gotten a lot of attention lately.
Realistic or not, here’s BNB’s market cap in ETH’s terms
However, there could be changes in the development activity as the chain rolls out the schedule for the BEP 633 upgrade.
From the information AMBCrypto got, the Testnet will take place in April while the Mainnet will be concluded by June.