Centralization - The Downside Of Binance

2a5cd7ebe808434285e6b52ffb8a7a9e.png

Although we can't actually argue on the fact that binance has "truly" had a huge impact on the cryptocurrency industry, however, the amount of power the exchange/chain has is kinda disturbing for a digital future. Binance is pretty centralized and that I guess ain't so new, though it's positioned as an "open source" chain, just like Ethereum, but we could all agree that both are blockchains of the "centralized" world.

Binance will likely live for a very long time, same as Ethereum. This however comes with a great threat for a future seeking decentralization. A lot of people are seeing the recent actions of Binance Smart Chain, towards squid game project developers as a great thing, but I can't help but worry over the centralized nature of BNB addresses. A report states that the company has been able to froze the addresses associated with the developers of the project as though the squid tokens were converted to BNB. This sound be alarming for BNB holders imo, this would mean there a higher "owner code" that gives access to binance to influence a BNB address, meaning the chain is prone to central attacks than a lot of people realize it.

Screenshot_2021110417342987.jpg

While everyone knows that Binance smart chain is a copied version of the Ethereum blockchain with cheaper fees, it's way more centralized than we might be told. The information above clearly claims to have less control over projects on BSC, but may I draw some attention to the fact that for a token to exist on the chain, it has hold a unique signature as I'd call it, which is possessing a tag as "Bep 20" or "Bep2" this makes it no different from BNB, since they both run on the same code. Though I'm not a tech savvy person, I could pretty much tell that all projects on the chain are vulnerable to their attacks, the only reason it would restrict itself from rapidly pulling strings would be to stay reputable.

Screenshot_2021110417331757.jpg

Defi in the dust, Shilling CEFI for Crypto Newbies…

As mentioned before, the cryptocurrency markets of late is filled with FOMO buyers and quick riches seekers, no one should actually feel bad for those getting scammed, if a bunch of people could practically throw in more than $3 million on a shit project out of the blue on pancakeswap when there are more reputable projects with years of development, then no one should be sad for such players. We all know the Asians and how far they would go for development purposes, so clearly, a famous series wouldn't carelessly launch on BSC and only list on pancakeswap.

However, Binance has found this as a great marketing tool to bring more eyes to centralized projects. The aim is to throw dirt on Defi and give credits to CEFI. Notwithstanding, the cryptocurrency industry will learn to grow out of centralization, eventually. The more crypto education is thrown out there, the more people will be drawn to the whole concept of crypto in the first place. Crypto isn't meant to be centralized, and it won't be for a long time.

Posted Using LeoFinance Beta



0
0
0.000
3 comments
avatar

Well, the fight against centralization is one that can't be fully achieved. Why is this so, nothing else than the human in us to be only worried about ourselves and less worried about others.

Crypto is slowly gaining power over centralization but we are the crypto user, so it depends on how woke you are to the crypto verse and what real decentralization feels like.

No doubt that the right education about the crypto world will pose a great positive effect in the long term.

Posted Using LeoFinance Beta

0
0
0.000
avatar

so it depends on how woke you are to the crypto verse and what real decentralization feels like.

HIVE - that's what decentralization feels like :)

0
0
0.000
avatar

Wow thank you so much I had no idea the chain was prone to central attacks. We often talk about the centralized nature of Bianace and Etherium. This article was very interesting :-)

0
0
0.000