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Your Daily Reminder that BNB and the Binance Smart Chain Is an Attack on ETH and an Attack on a Decentralized Smart Contract Future.

I get it. When you invest, you probably invest to make money. That’s the goal and usually the only goal. But it’s worth considering that you’re not just making money off a particular project, you’re also supporting the particular vision that project entails. If you’re a decent person, there’s a line you (hopefully) wouldn’t cross. If there were a tokenized version of child sex-trafficking, one would hope you wouldn’t invest in it even if it were a growing market. But the examples don’t have to be that extreme: if you’re an environmentalist, you probably shouldn’t be buying big oil companies like ExxonMobil.

So let’s remember what the Binance Smart Chain is in relation to Ethereum. Ethereum introduced the world to the idea of a decentralized open-sourced smart-contract platform, a World’s Computer. As Vitalik put it:

>Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts **Uber** out of a job and lets the taxi drivers work with the customer directly.

We’re not there yet obviously, but the promise of a future built on smart contracts is there. So that brings us to the Binance Smart Chain. What is it?

The Binance Smart Chain (BSC) is just a copy-paste of Ethereum with the tweak that they ditched decentralization. That’s it. Founded in China, moved to the Cayman Islands, their founder and CEO regularly shit-talks Ethereum, holds no ether, but openly-plagiarized their work to launch it.

The key difference between the Binance Smart Chain and Ethereum is governance. On BSC, 11 validator nodes are responsible for governance. They’re already selected. We don’t know precisely their ties to Binance, but they behave in a coordinated manner. (E.g., they rotate producing blocks in a seemingly predefined order despite their being no stake-weighted mechanism to determine which produces the next block.)

By contrast, governance on Ethereum‘s Beacon Chain is handled by the over [133,000 validators](https://www.beaconcha.in/) staking. The number is rapidly rising and anyone with the (admittedly significant) funds can join.

And to be clear, I’m all for competition. Cardano, for example, appears to be a genuine effort to compete. BSC is a pure centralized attempt to undermine.

TL;DR – Consider Ditching BNB and BEP-20 tokens.



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28 Comments

  1. I for one, don’t want to live in a world where Binance controls everything, which is what they want.

    They want to control the house, the game, the players and the judges.

    I have BNB for cheaper trading fees and that is from 2017.

    I would not invest with them.

  2. I have always said this, BSC is just a pretend decentralized DeFi, think about who makes the most profit from it…. Binance, the decentralization is just an illusion.

  3. I agree. However, as long as ETH fee are around 20 USD or higher, me as a small retail trader starting since a few months with Crypto, is impossible to handle.

  4. I’m confident people will stop using the binance smart chain once the eth network fees get lower. At the moment it’s almost impossible to make any swap on the eth main net (at leat for the average user)

  5. BNB SmartChain will draw in people desperate for a quick buck during this bull run, thanks to its APY returns and “opportunity” to buy various shitcoins, with low fees.

    How much it can cement itself beyond that probably relies on whether those APRs can survive a bear market, how long it takes gas fees to become more manageable and whether BNB-SC actually produces any centralised DeFi rip-off projects.

    I’d agree that BNB-SC seems destined to lose a lot of its volume when gas fees drop and/or other decentralised projects get off the ground / working smart contracts. After all, other than Binance suppressing fees due to a centralised chain, what’s its USP?

  6. Not surprised that a Made in China version of something isn’t gonna be as good as the original. Unfortunately, if BNB can continue to make people decent gains, it’s gonna keep going up.

  7. > Founded in China

    Are you insinuating that they’re founded and controlled by the CCP and therefore the rest of the world should be weary of it? They moved precisely to get away from CCPs crackdown of crypto.

    Or you’re just biased against anything by the Chinese, whether it’s government related or not, in which case more power to you but don’t Fud others.

    > Copy-paste

    Yeah you just happen to forget they changed it fundamentally from pow to pos.

    > Cardano

    I’m bullish on cardano too but as it stands, cardano is nowhere near eth or bsc in terms of ecosystem.

    Finally, centralization is a spectrum. It’s a philosophical thing and there’s no simple right and wrong answers. E
    G., The multiple hacks and rugs on bsc, without some form of centralization, people wouldn’t have recovered any of their funds. Anything in eth to protect ppl from these massive attacks?

  8. Ethereums unrealistic gas fees is the major problem why we have all these growing, I hope Ethereum 2.0 rolls out quickly so people can leave the BSC and develop on decentralized chains.

  9. I’m in agreement, yet I’d point out that for those making crazy bets on volatile shitcoins (read: not me) BNB / smart chain seems to be the lowest barrier to entry.

  10. There’s a lot of talk in the sub today to the effect “why do you all hate DOGE?” I don’t care about Doge, honestly, but I DO hate BNB, so I thought I’d share why.

  11. I’m just waiting for ETH2. Hopefully the gas fees gets cheaper, only reason why I’m using BNB and BSC is because the gas fees are affordable for me since my capital is fairly small at the moment.

    Until this day I can’t even withdraw my BAT on the ETH mainnet as the gas fees are more expensive than how much BAT I have on there lmao

  12. Ethereum needs to catch up and have cheaper fees if they want to compete with the Binance Smart Chain. I believe the centralized components of BSC will do good for Binance despite the ideology of “decentralization” in this sub.

    At the end of the day, the market will decide.

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