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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?
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.
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.
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.
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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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.