Although Binance supporters celebrate Binance Coin’s (BNB) peak performance for the first quarter of 2021, concerns about the centralization of the Binance ecosystem are growing.
On Monday, Messari researcher Ryan Watkins targeted the centralization of the Binance Smart Chain validators, stating, “Every cycle is cheated by the latest centralized solution to all blockchains problems.”
“Every cycle influencer pumps these narratives so they can pounce on naive retailers when it’s over.”
BSC uses a proof-of-staked authority consensus. The 21 active validators are selected daily by Binance Chain – a network managed by only 11 validators. BSC validators use BNB.
“It is difficult to assume that every Binance Chain Validator is in any way linked or connected to Binance,” speculated Wilson Withiam of Messari, adding, “They take turns producing blocks in what appears to be a pre-defined order. There does not appear to be a stake-weighted mechanism to determine which one will generate the next block. “
Some may overlook the impact Binance Chain has on the Binance Smart Chain validator set.
BSC has 21 active validators and is therefore more central than most platforms.
This validator set is determined daily by Binance Chain, a network managed by only 11 validators. pic.twitter.com/UeWDj0o1DY
– Wilson Withiam (@WilsonWithiam) April 12, 2021
Trying to clear up perceived misunderstandings regarding BSC’s performance, Watkins claimed its speed advantages over the Ethereum mainnet were a product of the “magic of centralization” rather than “technological innovation”.
“BSC is an Ethereum fork with a central validator set. That’s it. Nothing more, ”he added.
“If you really believe that BSC has achieved the supremacy in smart contracts and is becoming the global class, you are on the right track.”
However, Twitter user Earoshthime dismissed the claim by Watkins and others that BSC offers little more than clones of Ethereum-based DeFi Legos, describing copying as inherent in technological innovation.
“When it comes to inventions and innovations, copying is a function, not a mistake. Copying is a sign that something is worth exploring, but it only takes a character difference to get better, ”they said.
Twitter user Maurice K Taylo also responded in defense of BSC, describing Ethereum’s recent high fees and scaling issues as fuel for the search for alternative protocols.
Etherium needs to hurry and solve its scaling problem that is causing ridiculously high fees. These fees take too much money out of people. At some point people care more about their money than defi.
– Maurice k Taylor (@ mkt92z) April 12, 2021
Friday’s Messari performance report for the first quarter of 2021 found that BNB was the best-performing crypto asset, ranking in the top 10 by market capitalization, up 709% year-to-date. The BNB’s capitalization is now higher than that of the major banks UBS and Banco Santander.
