The advantages of Binance Smart Chain (BSC) over the Ethereum blockchain are due to the “magic of centralization”, not “technological innovation.” This was stated by Messari analyst Ryan Watkins.
The reason why BSC is faster and more scalable is not because of some magical technological innovation.
No, it’s instead the magic of centralization.
BSC is an Ethereum fork with a centralized validator set.
That’s it. Nothing more. https://t.co/dAeWsdolg6
— Ryan Watkins (@RyanWatkins_) April 12, 2021
“BSC is a fork of Ethereum with a centralized set of validators. That’s all. No more, ”wrote Watkins.
According to him, the price movement will make people believe anything. The analyst added that no rise in BNB or CAKE will change that “they are imitators.”
Price action will cause people to believe anything.
I don’t care how high BNB or CAKE go, it won’t change that they’re still copycats.
It’s one thing to view these assets as a way to make money, it’s another to view them as innovations that push this industry forward.
— Ryan Watkins (@RyanWatkins_) April 12, 2021
Retail investors are being fooled by “the latest centralized solution to all blockchain problems,” Watkins noted. In his opinion, at the end of the cycle, they will pay for it.
Every cycle people get hoodwinked by the latest centralized solution to all blockchains problems.
Every cycle influencers pump these narratives so they can dump on naïve retail traders when it’s over.
— Ryan Watkins (@RyanWatkins_) April 12, 2021
Messari colleague Wilson Wisiam called Binance Smart Chain more centralized than most platforms.
Some might overlook the influence Binance Chain has over Binance Smart Chain’s validator set.
BSC has 21 active validators, making it more centralized than most platforms.
This validator set is determined daily by Binance Chain, a network managed by just 11 validators. pic.twitter.com/UeWDj0o1DY
— Wilson Withiam (@WilsonWithiam) April 12, 2021
At the time of writing, the amount of blocked funds (TVL) in projects at BSC has reached $ 31 billion, according to DeFi Station. Over the past 30 days, the growth was 143%.
Data: DeFi Station.
Over the past 14 days, Binance Coin (BNB) is up 124%. At the time of writing, BNB is trading at $ 603, according to CoinGecko.
Against the background of the growth of BNB, the capitalization of the stablecoin Binance USD (BUSD) exceeded $ 5 billion.
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