Opinion: Binance Smart Chain — a centralized Ethereum fork, nothing more

The advantages of Binance Smart Chain (BSC) over the Ethereum blockchain are explained by the ‘magic of centralization’, not by technological innovations. 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 an Ethereum fork with a centralized validator set. That’s it. Nothing more,” wrote Watkins.

In his view, price action will lead people to believe anything. The analyst added that no rise in BNB or CAKE will change that “they are copycats”.

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

Retail investors are hoodwinked by ‘the latest centralized solution to all blockchain’s problems,’ Watkins noted. In his view, when the cycle ends 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

His Messari colleague Wilson Withiam described Binance Smart Chain as 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

As of writing, the total value locked (TVL) in projects on BSC stood at $31 billion, according to DeFi Station.

Over the last 14 days, Binance Coin (BNB) has risen by 110%. On Tuesday, 6 April, the token price hit a new high at the $400 mark. As of writing, BNB is trading at around $564, according to CoinGecko.

Amid the rise of BNB, the market capitalization of the stablecoin Binance USD (BUSD) surpassed $5 billion.

In April, TVL in the DeFi sector first surpassed $100 billion.

Follow ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.