Binance Smart Chain: analysts are warning of the protocol’s centralization
I don't want to spread FUD about Binance Smart Chain, i just want to inform you and discuss with the community.
I hold BNB and CAKE so my goal is not to criticize Binance Smart Chain, I'm having good yields since I invested in BNB and CAKE. I'm glad that Binance Coin is going mainstream day by day, BNB’s capitalization is now greater than that of major banks UBS and Banco Santander.
Binance Smart Chain has some advantages compared to Ethereum like speed and low transaction cost but many analyst are raising doubts about the protocol’s centralization. For this reason I would like to share with you those analysts' view so that you'll know also the critical issues of Binance Smart Chain.
Wilson Withiam then added:
BSC's active validator set resets daily based on each validator's voting power (staked BNB + any delegations).
All BNB staking and delegation takes place on Binance Chain through a staking module.
Binance Chain validators manage this module, thus all BSC validator accounts.
Binance launched each chain with "a few trusted nodes" in the validator set.
BSC now supports several third-party validators, although at least 5-6 others have close ties to Binance.
The distribution of validator accounts is far less clear for Binance Chain.
It's hard not to presume that each Binance Chain validator is in some way connected or tied to Binance.
They each take turns producing blocks in a seemingly predefined order. There doesn't appear to be any stake-weighted mechanism to determine which one produces the next block.
For those using BSC, take the time to understand the topology of the network. Sure, the fees and speed (both UX factors) are undoubtedly preferable.
But strong censorship resistance and fault tolerance are not part of the package.
Source: Twitter --> https://twitter.com/WilsonWithiam/status/1381420702918664194?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1381420702918664194%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fmessari-researchers-slam-binance-smart-chain-over-centralized-validators
Source: Twitter --> https://twitter.com/RyanWatkins_/status/1381421858675953665?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1381424037155328000%7Ctwgr%5E%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fmessari-researchers-slam-binance-smart-chain-over-centralized-validators
In my personal opinion, Binance Smart Chain will continue to take advantage of Ethereum's difficulties in the short term, as it offers fast and low cost transactions. However, BSC's limited decentralization could hold back the mass adoption of the BSC blockchain.
What is your mind?
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