Binance Smart Chain (BSC) – Centralized or Decentralized?

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2021-05-16 01:17:04

Binance Smart Chain (BSC) is attracting attention in the community, when the price of BNB increases sharply, leading to the development of the entire BSC ecosystem. However, the issue of centralization or decentralization of BSC is still open.

Binance Smart Chain – Centralized or Decentralized?

Despite BNB’s impressive price performance, BNB’s market capitalization surpassing that of Santander and UBS banks, many analysts are still concerned about the “decentralization” of the Binance ecosystem.

As mentioned in the article comparing Binance Smart Chain (BSC) vs Huobi Eco Chain (Heco) vs OKExChain, BSC uses a Proof of Staked Authority (PoSA) consensus mechanism with a total 21 validators is active.

Compare Binance Smart Chain with Huobi ECO Chain and OKEx Chain. Source: Kyros Ventures

These validators are selected by Binance Chain every day and validators must stake BNB back. Meanwhile, Binance Chain also only has 11 validators manage.

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Relationship between Binance Chain and Binance Smart Chain validators. Source: Messari

Messari analyst Wilson Withiam speculates:

“It’s hard not to assume that each of these validators has some sort of binding ‘relation’ to Binance. Each validator takes turns mining blocks in a seemingly pre-determined order. There doesn’t seem to be any staking weight mechanism to choose which validator will mine the next block.”

Withiam also further explained the misconceptions about BSC’s performance – claiming BSC’s speed advantage over Ethereum is due to a “centralized hand” and not to the miracle of technological innovation.

“BSC is a fork of Ethereum with a centralized validator mechanism.
If you really think that BSC has gained the upper hand in smart contracts and will become the new breakthrough in the blockchain field – you are wrong.”

Ethereum vs. Binance Smart Chain – Who wins?

However, many BSC fans quickly refuted this view. That BSC “copy” Ethereum is understandable in the evolution of technology. Meanwhile, BSC is a latecomer but does better than Ethereum.

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Considering the number of daily transactions alone, BSC has easily surpassed Ethereum. Source: Kyros Ventures

“In the realm of invention and innovation, copying is a feature, not a fault. Copying good things and making them even better is the right thing to do. This is exactly the case with BSC.”

Along with the situation that Ethereum transaction fees continue to be “expensive” and Ethereum 2.0 upgrades continue to be delayed such as the Optimism scaling solution for Ethereum “missing the date” to deploy until July, the community has reasons to quit Ethereum looking for better alternatives.

And of course, with many existing advantages, Binance Smart Chain is the right choice at this time.

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Potential coins in the BSC ecosystem have not been listed on Binance. Source: Kyros Ventures

To understand more about BSC and CZ’s “shilling” strategy, please read the article Binance Smart Chain – From 0 to 1 done, from 1 to n far? Under CZ’s “mold” hand and the potential of the Binance ecosystem, it can be seen that at the present time, BSC is still a formidable rising opponent of Ethereum.

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