Description of the question :

Compare transaction volume for BSC vs. Arbitrum over the past 7 days and create a simple visualization to display both. Highlight any interesting points of comparison that you see.

What is Binance Smart Chain (BSC)?

Binance Smart Chain —BSC— is a blockchain system from the crypto-trading platform Binance. BSC is designed to provide a high-performance infrastructure for decentralised trading, building dApps, interoperability between other blockchains, and support of smart contracts and other DeFi products

How BSC Works

Let’s get to know the Binance Chain (BS) first. This network is the home of BNB (Binance Coin) and where the community exchanges, issues, and trades digital assets in a decentralised manner with high throughput.

Binance Smart Chain came to expand Binance’s reach to DeFi developers looking for an efficient and high-performance network.

• Full Compatibility with Other Blockchains

BSC is not a build-off but a dual-chain system that supports many features of the DeFi universe, like asset swaps between other blockchains and full support for smart contracts. You could think of BSC as a complementary network to the BC.

A feature that makes BSC an interesting choice for developers is its full programmability and compatibility to the Ethereum Virtual Machine —EVM—. This allows developers to port their projects from ETH to BSC. By implementing the EVM, BSC has access to the many tools and dApps of Ethereum, like MetaMask.

BSC leverages interoperability so users can swap a handful of assets in the network. Anyone can exchange their BEP-2 —Binance Chain technical standard— and BEP-8 —a low-cost project for small projects— for BEP-20, which is a BSC’s token standard via Binance DEX or through Trust Wallet.

• Consensus

BSC uses a hybrid consensus called Proof of Staked Authority (PoSA). This algorithm allows all participants to become validators by staking their BNB coins. PoSA can be forked and requires several block confirmations than usual. Every validator can create one block, so to verify data on the Binance Smart Chain, several blocks are needed because data can’t rely on only one validator.

What Is Arbitrum?

How It Works and its Advantages

As a popular platform for developing decentralized applications (dApps), Ethereum is experiencing a massive surge in adoption. Unfortunately, the drastic increase in adoption makes the network encounter several obstacles, such as causing a bad user experience (UX) due to expensive gas fee or transaction fees and low transaction speeds. To solve the problems in the network, the Ethereum community launched a strategy called Arbitrum

Developed by Offchain Labs, Arbitrum is a layer-two (L2) rollup technology that offers high speed. In this article, you can learn more about what Arbitrum is, how it works, and its benefits.

In Fact :

Arbitrum is a layer-2 solution project designed to enhance Ethereum smart contracts in terms of speed scalability while adding additional privacy features to boot.

The platform is designed to make it easy for developers to execute unmodified Ethereum Virtual Machine (EVM) contracts and Ethereum transactions at layer-2 while still benefiting from Ethereum’s excellent layer-1 security. 

Arbitrum itself was created to address some of the shortcomings of current Ethereum-based smart contracts. As for the drawbacks, such as long transactions and high execution costs.

Arbitrum uses a technique known as transaction rollup to log batches of transactions submitted on the Ethereum main chain and execute them on inexpensive, scalable layer-2 sidechains. This process helps release most of the compute and storage burden that Ethereum is experiencing while enabling a new class of robust layer-2 based aApps.

New York-based development company Off-chain Labs is currently building Arbitrum products and a whole suite of scaling solutions. 

This initiative was spearheaded by Ed Felten, Steven Goldfeder, and Harry Kalodner. All three are blockchain experts with a desire to make cryptocurrencies even better.

How Does It Work?

Arbitrum is a type of technology known as an optimistic rollup. This technology allows smart contracts from Ethereum to scale by sending messages between smart contracts and those in the Arbitrum second chain layer.

In addition, most of the transaction processing will be completed at layer-2, and Arbitrum will record the results in the main chain. The system can drastically increase its working speed and efficiency through this process.

Later, any validator can post a rollup block and confirm the validity of another block. The term rollup describes how a validator can use public information to reconstruct a complete chain history from optimized logs. The protocol ensures that the code will run correctly.

Future versions of the Arbitrum project will also have two other modes: the AnyTrust channel and sidechain.

Like many blockchains, individual nodes can participate in the Arbitrum chain. Validator nodes are involved in observing the chain’s state and full nodes, helping to combine layer-1 transactions. Aggregators that send transactions to the layer-1 chain get rewards paid in ETH, while other user transaction fees are distributed to other network participants, such as validators.

This layer-2 solution project introduces a challenging step for block rollup, which sees other validators check the block’s correctness and issue a “challenge” if they believe it is false. If the block is proven wrong or the challenge proves to be unjustified, then the validator who lies will have their assets confiscated. This process ensures that all validators always play fair and accept the consequences if they violate.

The platform also has its custom virtual machine, the Arbitrum Virtual Machine (AVM). The AVM is the execution area for Arbitrum smart contracts and is on top of EthBridge, a smart contract collection that interacts with the Arbitrum chain. Ethereum compatible smart contracts are automatically translated to run on the AVM.

The Advantages of Arbitrum

Below are some unique features of Arbitrum:

1. High EVM compatibility
2. Low Cost
3. High EVM compatibility
4. Powerful Developer Tools
5. Good Ecosystem

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Arbitrum

Binance Smart Chain

Compare transaction volume for BSC vs. Arbitrum over the past 7 days

At the beginning, let us see the output of the written commands

Comparing the values on the line chart shows that the rate of growth and decline of both currencies was relatively the same, with the difference that BSC has a steeper slope in growth and decline

As can be seen in the comparative chart below, BSC has grown and fallen suddenly, but the Arbitrum has grown and fallen slowly.

But the remarkable point is the simultaneity at the end of the growth point of both currencies

In the table below, you can see that the volume of the Arbitrum transaction is significantly higher than the volume of the BSC transaction