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Is the Binance Smart Chain a Threat to Ethereum? - CRYPTO FRIDAY

The great battle BSC vs. Ethereum - Who will be the winner?

Fabian Klauder

Apr 30, 2021

Hey DEFI TIMES community,

Binance Smart Chain (BSC) has been killing it in the last few weeks and months. And now it seems like BSC has actually overtook Ethereum in daily active addresses.

Andrew Køng @Rewkang

Ethereum vs Binance Smart Chain Active Addresses

The question many people ask themselves is whether BSC could be a threat to Ethereum in the short and long-term.

Well, Nic Carter recently summarized it really well in one of his tweets.

nic carter @nic__carter

The ETH-BSC postulate: if you compromise on decentralization to win some efficiency, eventually you will be challenged by a competitor willing to make a more extreme version of the tradeoff

BSC sacrifices decentralization for scalability - a trade-off, which is not hard to make. And eventually some project will make a more extreme version of the same trade-off, ultimately achieving even more scalability.

So, this trade-off will lead to a never ending cycle of compromising decentralization for the sake of scalability.

In fact, BSC is doing everything possible to make the chain more scalable. Just recently they increased the gas limit significantly. Increasing the gas limit means more blockspace. This wipes out nodes and makes the blockchain more centralized.

caption...Source: Bscscan (https://bscscan.com/chart/gaslimit)

I bet that BSC will continue to increase the block space once transactions become somewhat expensive. This is how they aim to scale. BSC does not aim to be decentralized, which is great in the short term, but a burden in the long term.

Ethereum, on the other hand, aims to stay as decentralized as possible. In order to scale, developers put a lot of effort into building ETH 2.0 - a decentralized, scalable, and fast version of Ethereum.

The question you need to ask yourself is: Is a totally centralized chain really a competitor to Ethereum?

Probably not. But that also doesn’t mean that BSC will die - it certainly won’t!

The future is multichain!

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Aave introduces liquidity mining

Aave @AaveAave

Aave v2 liquidity incentives are now live on app.aave.com. Users, integrators, builders, and more will now be able to receive $stkAAVE and participate in protocol governance 👻 👻👻

app.aave.comAave - Open Source Liquidity ProtocolAave is an Open Source Protocol to create Non-Custodial Liquidity Markets to earn interest on deposits and borrow assets with a variable or stable interest rate. The protocol is designed for easy integration into your products and services.

Aave introduced liquidity mining to incentivize LP to deposit even more funds. The strategy already works out quite well - just look out at the TVL.

Source: DeFi Pulse (https://defipulse.com/aave)

mStable live on Polygon

mStable 🧮 @mstable_

1/ mStable has launched on Polygon 🚀 @mstable_ offers @0xPolygon users another source of USD and BTC liquidity, a DeFi-native savings account and two risk minimised meta-stablecoins. Get started: app.mstable.org Learn more / Guide: medium.com/mstable/mstabl…

medium.commStable is now live on Polygon!Today, mStable launches on Polygon and offers users another source of USD liquidity, a purpose-built DeFi-native savings account and a risk minimised meta-stablecoin. This article will quickly…

mStable is now live on Polygon. mStable is a protocol for stablecoin swapping. The Polygon implementation should increase scalability and usage of the protocol.

Nexus Mutual Cover

Nexus Mutual 🐢 @NexusMutual

📣 Protocol Cover is live! 🐢 Getting covered with Nexus now includes: 💰 economic incentive, 🌐 oracle & 🗳️ governance attacks ⛓️ any chain 2⃣layer 2 medium.com/nexus-mutual/n…

medium.comNexus is growing: Protocol Cover is live!In response to the ever evolving demands of the DeFi ecosystem, our users have been calling for more versatile protection against the inherent risks in DeFi. Today we’re excited to launch Protocol…

Nexus Mutual launched Cover, which increases the coverage to:

oracle attacks
severe economic attacks
governance attacks.

Badger Bitcoin Bridge

₿adger DAO 🦡 @BadgerDAO

Announcing the launch of the Badger Bitcoin Bridge powered by @renprotocol. ➡️ Earn interest on native BTC in 1 click ➡️ $6m in reward incentives ➡️ WBTC.Cafe becomes Badger Bridge Bridge here➡️ app.badger.finance/bridge Info➡️ bit.ly/3dRpXPj Thread👇

Badger launched a service to earn yield on your BTC on Ethereum.

xBNT launched

Bancor @Bancor

Say hello to $xBNT, built by @xtokenmarket 🚘 Self-driving liquidity that allocates your $BNT to the highest-yielding pools on Bancor 🪙 $BNT rewards are automatically re-staked ⛽️ Only pay gas when you enter & exit $xBNT Take it for a spin at xtoken.market

xToken @xtokenmarket

xBNT is audited, deployed and live at https://t.co/QFd0TCfmOL! xBNT is a set-and-forget wrapper for @Bancor BNT staking (LP'ing) that allocates, claims and compounds on behalf of holders. https://t.co/aHjMxiU0kh

xBNT is a staking solution to automatically optimize yield. The service is gas efficient and super easy to use!

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DISCLAIMER: All information presented above is meant for informational purposes only and should not be treated as financial, legal, or tax advice. This article's content solely reflects the opinion of the writer, who is not a financial advisor.

Do your own research before you purchase cryptocurrencies. Any cryptocurrency can go down in value. Holding cryptocurrencies is risky.

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